These natural disasters were so colossal that the fallout is expected to affect every person in the U.S. in some way, directly or indirectly, over the next year or two. In fact, even the real estate and mortgage industries are expecting a blow, as countless flood damaged and hurricane ravaged homes will go into default for one reason: the homeowners weren’t properly insured.
Here in Sacramento, we have our own ongoing flirtation with possible flooding, as we sit in a valley in the crux of two rivers with only a levee system to protect thousands of homes in some places.
Here are 25 facts and stats about flood insurance to convince you to call your insurance agent today:
The prevalence of flood insurance and claims:
According to the Insurance Information Institute, only 18% of Americans have flood insurance on their current property.
Even more alarming is that 1 in 5 homeowners don’t even realize that their normal home insurance doesn’t cover flood damage!
In fact, insurance claims for flood damage totaled about $3.5 billion in 2016, with the average claim reaching $66,295.
Every year, there are approximately 5.3 million flood insurance policies in the U.S.
If we take any home over a 30-year period (the time it takes to pay off the home with a 30-year loan), it has a 300% higher chance to get hit by a flood than a fire.
Where does flooding occur?
What's the number one natural disaster in the United States? Believe it or not, it's not fires, hurricanes, or earthquakes that cause the most damage every year, but flooding.
You may think that flooding is resigned to high-risk states like Texas, Florida, Louisiana, etc., but there have been floods in every state over just the last 5 years,
In fact, 25% - 30% of all insurance claims for residential flood damage are filed in moderate or low-risk areas.
That’s why flood insurance policies are spread out among 22,00 neighborhoods and communities across the country.
Does it take a major storm to cause dangerous flooding?
It doesn’t take a historic hurricane like Harvey or massive levee failures like what happened after Katrina to cause catastrophic flooding.
Even a few inches of water that enters homes or communities can cause millions of dollars of damage. In fact, a home can be rendered unlivable in just a matter of minutes when flooding occurs.
Flash flooding from heavy rain, runoff, or distressed dams and levees can create a wall of water as high as 10 to 15 feet high alarmingly fast.
Even a flood only two feet deep can quickly carry away motor vehicles – and anyone in them.
What causes flooding?
We often take notice of flooding when catastrophic weather events like Hurricane Harvey strike. But flooding is also caused by common storms, heavy rainfall, seasonal snowmelt, malfunctioning dams and levees, and also from man-made conditions.
In fact, development and housing construction can cause flooding because it disrupts or alters the natural path for water runoff and drainage.
How can flood insurance help?
People commonly are required to get flood insurance when they bur or refinance a house and the lender mandates it. They would do so for two reasons why a mortgage lender will require a borrower to have flood insurance:
• The home or property is located in a designated high-risk flood zone or,
• The mortgage loan came from a federally regulated or insured lender (like FHA, VA, etc.)
What are flood zones and a flood zone map?
FEMA, or the Federal Emergency Management Agency, with the help of the Army Corp. of Engineers and local flood control authorities, designates where low, moderate, and high-risk flooding areas exist.
FEMA uses their data to maintain special Flood Insurance Rate Maps for every city, rural area, and community across the U.S.
FEMA pinpoints each home to be within a high, moderate, or low-risk zone for flooding.
How does flood insurance help homeowners?
It’s wise to get a flood insurance policy even if your lender doesn’t require it since the average flood insurance policy costs only $700 per year nationally. But that includes high-risk areas, so if your home is located in an area not commonly subject to floods, you may qualify for lower rates.
Check with your insurance agent for details, but the typical flood insurance policy will cover:
· Structural property damage
· Carpet repair or replacement
· Wood flooring removal and replacement Damage to heating and air conditioning systems
· Damage to electrical and plumbing systems
· Drywall and framing water damage
· Damage from mold or mildew growth
· Removal of debris and trash
How about flooding in the Sacramento area?
Consistent with national data, significant 20% -25% of all flood insurance claims in Sacramento County are filed in low-risk areas.
Even if your lender doesn’t specifically require you to carry flood insurance, the City of Sacramento, Sacramento County, and FEMA suggest that Sacramento property owners who live near levees or in low areas to consider coverage.
Sacramento has done a lot to improve its flood management protection and lower our risk level recently. This hasn’t gone unnoticed by FEMA who upgraded Sacramento County to a “3” rating (the second highest for any California community and among the top 1% in the nation) as of May 2013.
Due to this focus on flood management infrastructure and planning, Sacramento County residents may be able to get up to 35% off their flood insurance premiums.
How do you get more information on flooding in Sacramento County, as well as flood insurance?
If your property is located within the City limits, please contact the City of Sacramento’s Floodplain Information line at (916) 808-5061.
If your property is located in the unincorporated area of Sacramento County, please contact the County’s Flood Zone Information Hotline at (916) 874-7517.
If you have questions about levees or general questions about flood insurance, please contact Sacramento Area Flood Control Agency at (916) 874-7606.
Check out the National Flood Insurance Program’s website at www.floodsmart.gov.
Or contact your insurance agent for specifics.
No comments:
Post a Comment