Report: Only 1 in 7 Homeowners Have Flood Insurance

A report from the Insurance Information Institute showed that only 14 percent of American homeowners also have flood insurance policies. The low number may be attributed to the misconception that flood insurance is included in the standard homeowners insurance policies. This misunderstanding can lead to devastating consequences when floods occur. Homeowners in South Carolina, a state where only 10 percent of homeowners have flood insurance, have learned this fact in the wake of the recent Hurricane Joaquin

Where to Get Flood Insurance

After several devastating weather events, including Hurricanes Katrina and Rita in 2005, most private insurance carriers stopped offering flood insurance policies. As an alternative, the Federal Emergency Management Agency created the National Flood Insurance Program (NFIP). The NFIP allows homeowners to purchase flood insurance coverage. The NFIP policies provide up to $250,000 for structural damage and up to $100,000 of personal property coverage.

Why You Need Flood Insurance

While government and private agencies offer aid to flood victims, only a comprehensive flood insurance policy can provide the protection homeowners need to protect their investments. Despite the obvious needs for flood insurance, many mortgage lenders will not provide loans to home buyers without proof of flood insurance. Banks and other home lenders enforce these rules much more strictly in regions prone to flooding. These regions can include coastlines, river flood plains, and other low-lying areas.

What Flood Insurance Costs

According to the III report, the average annual flood insurance premium is around $700. However, residents in areas with a higher risk for flooding can expect to pay higher flood insurance premiums. Recent changes in the federal flood insurance program called for premium increases by as much as 25 percent in high-risk areas. The program also added surcharges onto its flood insurance policies. Policy holders must now pay surcharges of $25 for their primary homes and $250 for each additional home.

When Your Flood Insurance Claims Get Denied

A major factor in the success of any flood insurance claim lies in the amount of documentation that goes with the claim submission. Experts advise that flood victims take as many photos, notes and videos as possible to demonstrate the level of damage. However, if the NFIP decides to deny or underpay a legitimate flood insurance claim, some policy holders may feel too intimidated to challenge their decisions. An experienced flood insurance attorney can help homeowners fight unfair claim denials and get them the help they need.

Source: New York Times

Get Answers For Your Flood Insurance Lawsuit Questions

To find out how we can answer your questions about a flood insurance lawsuit, contact one of our attorneys today. Our intake team will take down the details of your case and quickly connect you to an attorney who understands how to get the most from your flood insurance lawsuit. You can also fill out the “Free Case Evaluation” form at the top of this page.

NOTE: This blog post is a news story and does not imply an endorsement of Arguello Law Firm by any of the parties mentioned herein.