Staying above water. . .Why Flood Insurance?

Did You Know….

·         Everyone lives in a flood zone.

·         If you are in lower risk areas, you can purchase lower cost Preferred Risk Policies (PRP).

·         Flood insurance is affordable.

·         Flood insurance is easy to get.

·         Contents coverage can be purchased by renters to protect their belongings.

·         Federal disaster assistance is not the answer

Property policies do NOT usually include coverage for floods.

Flooding causes more than $2 billion of property damage annually and floods occur more often than all other natural disasters with the exception of fire. In a high-risk area, a home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage compared to a 9% chance of fire.

The Actual Cost of Flood Damage

Flooding may bring significant personal and financial hardship. Since most homeowner policies exclude losses due to flood, it is important to purchase a separate flood policy.

High Cost for Flood Cleanup

A customer that experiences damages due to flooding may have to come up with serious cash. According to FloodSmart, homeowners who encounter one to four inches of flood damage may have to pay approximately $15,150 out of their own pocket to clean up after the waters subside. That $15,150 could pay for replacing items like:

• $600: Computer accessories
• $950: Cleanup, materials
• $1,000: Doors, base trim, and windows
• $1,500: Replace drywall, insulation
• $7,900: Replace carpet, flooring

Customers impacted by five to twelve inches worth of flood damage to their property can tack on an additional $12,000 for a potential cleanup bill that could be more than $27,000. This could account for:

• $900: Electrical and plumbing
• $1,000: Repaint interior
• $2,200: Appliances
• $2,400: Kitchen and bath cabinets
• In addition to the $15,150 for the repairs listed above

And the dollar amounts just keep rising. For each additional inch of flood water, the potential cost to homeowners rises. FloodSmart says customers who experience a two foot flood may have to pay more than $33,000 for repairs for only a 1,000 square foot home.

It takes 30 days after purchase for a flood policy to take effect, so it's important that you buy flood insurance before the floodwaters start to rise.

Why should I purchase flood insurance?

• Floods are the most common natural disaster.
• Most homeowners, condominium, manufactured home, renters and business insurance policies exclude losses due to flood.
• Flooding is the most costly natural disaster in the U.S., causing nearly $24 billion of property damage over the last 10 years.
• Just an inch of water can cause costly damage to your property.
• A car can easily be carried away by just two feet of floodwater.
• Your home has a 26 percent chance of being damaged by a flood during the course of a 30-year mortgage.
• Government assistance is sometimes available, but only if the disaster is declared a state or federal disaster, and the assistance is usually in the form of a loan.
• A federal disaster loan of $50,000 will be paid back at $240 a month at four percent interest while the average flood insurance policy costs $500 a year.

What if my flood risk appears to be low?

• Everyone lives in a flood zone - anywhere it rains, it can flood.
• Flooding is not limited to coastal areas. Floods and flash floods happen in all 50 states.
• Approximately 25 percent of all flooding events occur outside Standard Flood Hazard Areas.
• If you live in a low-to-moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $129 a year, including coverage for your property's contents.
• Just because you haven't experienced a flood in the past, doesn't mean you won't in the future. Flood risk isn't just based on history, it's also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

What causes flooding?

• Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall.
• New land development can also increase flood risk, especially if the construction changes natural run-off paths.
• Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow. Flash floods may occur without warning when a large volume of water falls in a short time.

Source: www.allstate.com, http://www.floodsmart.gov/
Contact us @ www.allstate.com/robstadnicki