In 2019, the average flood claim payout from the National Flood Insurance Program was $52,000.1
The financial loss that comes with flooding can be devastating. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.2
Low vs. High Risk
Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for nearly 25% of all National Flood Insurance Program insurance claims and one-third of federal disaster assistance for flooding.1
To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent. However, to be eligible, you will need to live in a community that participates in the program.3
Coverage Choices
If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.
If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.
The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors and the location of contents, your flood risk, and the deductible and level of coverage you choose, among other things.
1. FEMA.gov, 2022. Most recent figure available.
2. Several factors will affect the cost of flood insurance, including the age of your home, number of floors, and the location of contents. You should consider the amount of your deductible and level of coverage before purchasing a flood insurance policy.
3. FEMA.gov, 2022
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker – dealer, state – or SEC – registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) (https://www.caprivacy.org/) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information (http://www.library-messages.com/eb3628e6-1f06-43a0-82ba-8833bcfc4f94/donotsellmypersonalinformation).
Copyright 2022 FMG Suite