Last Monday’s blog post was, “An introduction to flood insurance.”. It provides a good foundation on flood insurance. I thought I’d share some interesting tidbits of information I learned in writing that post as I always learn something in every blog I write!
Here’s your list of 10 things you didn’t know about flooding & flood insurance that I’ll answer for you!
- Flooding is the number 1 natural disaster in the US.
- Nearly 20% of all flood insurance claims come from moderate to low risk areas.
- There is a 30 day waiting period for all new flood policies unless it’s required for closing on a new home purchase.
- Flash floods are the number 1 weather related killer in the US.
- According to the National Inventory of Dams 1994 survey, there are over 74,000 dams in the US. Nearly 1/3 pose a significant risk to life and property if they collapse.
- Average flood insurance policy costs about $600 a year.
- In high risk flood areas, there is at least a 1 in 4 chance of flooding during a 30 year mortgage.
- From 2007 to 2011 the average residential flood claim amounted to almost $30,000.
- Disaster assistance, if it’s available, is typically provided as a loan that must be repaid with interest. This applies to those who qualify for assistance but did not have flood coverage.
- The average cost of flood damage for a 1000 square foot home is $10,600 for 1 inch of water, $20,150 for 6 inches of water, $27,150 for 1 foot of water and $39,950 for 4 feet of water. In a 2,000 square foot home, the loss amounts are roughly double.
Most people don’t think of flood insurance until they face one of two situations;
- They picked out their dream home but discover it’s in a flood zone.
- FEMA updated the flood maps and the home you’ve been living in is now in a flood zone.
If you experience one of these situations, here’s one possible action you can take to save on the cost of flood insurance; get an elevation certificate. Elevation certificates can be obtained from a surveyor licensed to provide one. One of the most important findings of the survey is determining where the top of the lowest floor resides in relationship to the flood zone. If it’s above the food zone, you saved yourself more than the cost of the survey. If it’s below, you have a difficult decision to make that will require some expert advice from your agent.
Do you have a question about flooding or flood insurance? Ask us by posting it in the comments section below or on our Facebook page and we’ll get an answer for you!