Last Monday, I posted an annual overview on flood insurance which provides an easy introduction to flood insurance. I wanted to follow it up this week with a list of 10 little known facts about flooding and flood insurance most people may not be aware of. Many people tend to discount a flood can happen to them since they aren’t in a 50 or 100-year flood plain. But as many Houstonians can attest in the aftermath of Hurricane Harvey, that may not count for much!
Here are 10 little known facts about flooding & flood insurance worth knowing!
- The number 1 natural disaster in the US is flooding.
- About 20% of all flood insurance claims come from moderate to low risk areas.
- There is a 30-day waiting period for all new government backed 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. If your home is in a non-mandatory or 100-year flood zone, the cost can be as little as $450 per year.
- In high risk flood areas, there is at least a 25% 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 is for anyone who qualifies for assistance whether they had flood coverage or not.
- 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.
Next week we’ll wrap up our series on flood insurance by addressing what is an elevation survey and the potential benefit of having one. Do you have a question about flooding or flood insurance? Let me know on my Facebook, Google +, or LinkedIn pages. I’d love to hear from you!