Why Flood Insurance is Essential – No Matter Where You Live
When it comes to protecting your home or business, flood insurance is one of the most overlooked yet critical coverages you can have. Many property owners assume that if they’re not in a high-risk flood zone, they’re safe. However, the reality is that floods can happen anywhere. In fact, over 20% of flood insurance claims come from properties outside of high-risk zones. At Paradise Point Insurance, we believe it’s our responsibility to educate customers about the importance of flood insurance—because the cost of not having it can be devastating.
The Risks of Flooding Are Greater Than You Think
Visiting the doctor, exercising regularly, and eating nutritious foods—these are all things we know benefit us, yet many of us procrastinate or avoid them entirely. Adding flood insurance to this list might seem unusual, but unlike these well-known health habits, many property owners are unaware of the risks of not having flood coverage. As an independent agent, educating our customers about these dangers is crucial. Many assume that if their lender doesn’t require flood insurance, they don’t need it. Some believe their home is safe from flooding, while others mistakenly think their homeowners policy includes flood coverage. The truth is, flood damage is excluded from standard homeowners insurance, and flooding remains the most common natural disaster in the U.S. Shockingly, over 20% of flood claims come from properties outside designated high-risk areas.
For those in flood-prone zones, an elevation certificate can lead to substantial savings on flood insurance. This document, issued by a licensed surveyor, provides critical information about a property’s elevation relative to the base flood level. If a home sits above the base flood level, insurance premiums may be significantly reduced, making flood insurance much more affordable. However, many homeowners don’t realize that construction and development in their area can alter drainage patterns and increase flood risks over time. Rezoning and flood map updates don’t always happen annually—sometimes, they take years. For example, Stoney Creek in Leland was once designated an X zone before Hurricane Florence, but after the storm, it was rezoned to an AE flood zone due to increased risk. Just because a home was originally placed in a low-risk zone doesn’t mean it will always remain there. That’s why it’s crucial to stay informed and be proactive about flood insurance, regardless of your current zone designation.
Summer is the ideal time to discuss flood insurance with clients, as heavy seasonal rains elevate the risk of flooding. With a 30-day waiting period for coverage to take effect, it’s vital to property owners to act now rather than later. A home is often the biggest investment a person will ever make, and protecting that investment is easier, more convenient, and more affordable than most people think. When reviewing your insurance needs, make sure flood insurance is a part of the conversation—it’s a crucial step in safeguarding your future.
Common Misconceptions About Flood Insurance
Many property owners operate under false assumptions when it comes to flood insurance. Here are some of the most common myths and the truth behind them:
“I’m not in a high-risk flood zone, so I don’t need flood insurance.”
Truth: Flooding can occur anywhere, and as we mentioned earlier, a significant portion of flood claims come from outside designated flood zones.
“My homeowners insurance will cover flood damage.”
Truth: Standard homeowners policies do not cover flood damage. Without separate flood insurance, you may have to pay out of pocket for repairs and losses.
“Federal disaster assistance will cover my losses.”
Truth: Disaster assistance is only available if a federal disaster is declared—and even then, it often comes in the form of low-interest loans that must be repaid.
Flood Insurance: A Small Investment for Big Protection
One of the biggest advantages of purchasing flood insurance outside a high-risk zone is its affordability. Policies in lower-risk areas cost significantly less than those in high-risk zones. It’s a small price to pay for peace of mind, knowing that your home or business is protected from one of the most common natural disasters.
Take Action Before It’s Too Late
Flood insurance policies typically have a 30-day waiting period before they take effect. That means waiting until a storm is in the forecast is too late. Now is the time to act. Summer rains and hurricane season increase the risk of flooding, and protecting your property now can save you from significant financial and emotional stress later.
At Paradise Point Insurance, we’re here to help you navigate the complexities of flood insurance and find the right coverage for your needs. Don’t wait until it’s too late—contact us today and get the protection you deserve.
