Research shows that damage attributed to floods will see a rise of 26% in the next 30 years due to extreme weather events. We need to accept the fact that flooding is the most frequent and expensive natural disaster in the US. Flooding affects over 16 million people on a regular basis. A huge chunk of the population lives in areas where flood risks are increasing but people are also leaving their family homes to escape flood-prone areas which have historically never seen floods.

Despite all of this, a large segment of homeowners think that they don’t need flood insurance, with only around 27% of homeowners having it as per the National Association of Insurance Commissioners.

This points to an underlying misconception that flood damage is covered by a homeowners policy, but the truth is that a standard homeowners policy won’t cover flood damage. Without flood insurance, families can face dire financial disaster in case their home is hit by a flood.

Everything you need to know about flood insurance

Flood insurance is essentially an insurance plan that offers protection for flood-related damage to your home and possessions. It is distinct from home insurance as it provides coverage for hurricanes and heavy rain, but not for floods. Flood insurance provides coverage for events such as storm surges, flooding from rivers or streams during storms, and sudden floods. Even though the National Flood Insurance Program offers protection for specific losses, there is a mandatory waiting period of 30 days before the benefits kick in. However, we, as private policy providers, do not impose any waiting periods. At Gonzalez Insurance, we provide speedy assistance and support to help you recover swiftly. Flood insurance provides coverage for both the home and structure (dwelling) and your personal belongings (contents).

1. Dwelling coverage: This policy is in place to repair or rebuild homes after flood-related damage. This can include electrical and plumbing systems, structural damage, and more.

2. Contents coverage: This is also termed as personal property coverage sometimes and essentially covers personal items such as furniture, clothing, and appliances.

What flood insurance doesn’t cover

Not all water damage is covered by flood insurance. Home insurance covers damage from burst pipes, while flood insurance does not cover this type of damage. Additionally, flood insurance does not cover personal property located outside the building structure, like decks, patios, swimming pools, and garden beds. Moreover, flood insurance does not cover damage caused by mold or mildew that could have been prevented or was a result of negligence. Moreover, flood insurance does not cover extra living costs while your home is uninhabitable during repairs. Flood insurance does not cover destruction or harm to cars or bikes, which are usually covered by auto insurance.

Who really needs flood insurance?

The short answer is everyone. This is because flood damage is not covered by standard homeowners insurance and will not cover any damages. It is important to take into consideration climate change, which is making the weather more and more unpredictable every year. Areas that have never flooded are now flooding. This is why it makes sense for everyone to have it because flooding can happen anywhere at any time. Relying on federal disaster aid is a rookie mistake because it could take months to come in, and is not offered for every flood.

Why are Americans so wary of flood insurance?

Despite evidence piling up and hundreds of thousands of dollars being spent on flood damages, people are still skeptical about flood insurance. Here are a few reasons why:

1. Misinformation: A survey mentioned that 43% of homeowners believed that their home insurance policy would cover their flood damage, a common yet costly mistake. Homeowner’s insurance for water damage is generally limited to problems like pipe bursts, as opposed to inundation of water on the ground.

1. Lack of awareness: Many people don’t have flood insurance because they are simply unaware of its existence, or they believe that existing policies are enough to cover them.

1. Cost cutting: Homes tend to go without flood insurance either because of a lack of awareness or to cut costs. Larger insurance firms have extremely high premiums and flood insurance can go over $1000 annually on average. At Gonzalez Insurance, we recognize this as an issue and always offer tailor-made policies that fit each customer’s unique needs – so you only pay for what you need and not a penny more. We understand that getting a policy can be a daunting experience and our agents are always responsive and happy to help and will ensure that claims are smooth and fast.

1. False sense of security: Unfortunately, most flood maps shared by FEMA-designated flood zones are outdated, with just one-third of the country’s floodplains being mapped out. Climate disasters are becoming the norm, and rain storms are getting worse increasing the risk of flooding even in areas that have never flooded before.

Taking the leap to secure yourself

For people who live in high-risk zones, flood insurance is not just encouraged, it’s the norm. Even for areas where flood insurance is not mandated, it makes sense to have it so that you don’t waste thousands of dollars on damages. At Gonzalez Insurance, we can custom-make a cover depending on the risks so that you can pay for what you need, and nothing more. There are different kinds of flood insurance options available:

• Commercial flood insurance: This is for small business owners, wherein small business insurance will not cover flood-related claims. This is comprehensive and covers damages to the building including awnings and canopies, foundation, central air conditioning and ventilation systems, electrical and plumbing systems, fire extinguishers, antenna, carpeting, permanently fitted paneling, bookcases, cabinets and wallboard, walk-in freezers, and water heaters. A good cover will also protect certain valuables such as furs or art, clothes, washers, dryers, food freezers, furniture and fixtures, machinery, dishwashers, microwaves, and more. Currency, precious metals and certificates or data are not covered, along with buildings that had damage due to mildew or mold, drain backups, and so on.
• Flood insurance for condos and cooperative housing: Standard condo insurance will not cover flood-related damages, so one must get flood insurance for the building and commonly owned contents or personal flood insurance to protect damages to the structure and belongings.

We understand that getting flood insurance can be a daunting experience, but it doesn’t have to be. Being a small business ourselves, we understand the value of providing unmatched customer service and the best prices that are custom-made to suit specific needs. Get in touch if you are a homeowner or small business owner looking to get flood insurance.