Debunking Flood Insurance Myths
There are many misconceptions about flood insurance and the buck stops here. Here are some of the tops myths about flood insurance that many people are misinformed about. Learn more on our website and let one of our agents quote your flood insurance today in 3 minutes or less.
Watch this brief video about common Flood insurance myths: https://vimeo.com/332293963
Every state and 98% of the nation’s counties have experienced a flooding event. Still, only 5% of U.S.
residents have flood insurance and only 40% of the A or V zones (FEMA designated as high risk) are
insured.
The average flood loss over the last 3 years was $73,960
Why aren’t more people buying flood protection? Mainly because homeowners believe one
of these myths:
Myth #1:
My house isn’t in a “flood zone” or My lender doesn’t require it.
The truth is that it's the law. If your home is in a high risk (mandatory) flood zone (starts with A or V) then you’re required by law to have
flood insurance if you have a mortgage. About 70% of Hurricane Harvey victims did not have flood insurance,
mainly because their flooded homes were not in A or V zones, so they were not required to buy it. With 75% of
FEMA maps outdated (some as old as 1983), this just isn’t a reliable indicator of risk. 25% of all flood claims occur
outside of high risk (A & V zone) areas.
Myth #2:
I have a homeowners policy, so I am covered.
The truth is homeowners and renters policies do not cover flooding. Customers need a separate flood policy to
cover flooding events.
Myth #3:
If it ever happens, FEMA will bail me out.
The truth is a federal disaster must be declared before FEMA assistance becomes available. Ifa declaration is
made (occurs less than 50% of the time), the “bailout” is usually in the form of a low-interest disaster loan, which
must be repaid. Some families also rely on grants which, if provided, are not enough to cover losses. Harvey
victims who were lucky enough to navigate the grant bureaucracy got an average payout from FEMA of $4,300,
while the average Harvey loss was $116,823.
Choose the Protection You Need: It takes less than 2 minutes to get a flood quote with Neptune through Miami Insurance Brokers. You can even buy extra coverage for temporary
living expenses and replacement cost on your personal property. Get what you need to protect your home and
family.
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