Why Flood Insurance is Essential

Why Flood Insurance is Essential

Think you don’t need flood insurance? Perhaps you don’t live near water, or maybe you have a great homeowners policy. The truth is, every home is at risk of flooding. Before passing on flood coverage, here are five things you should know.

Five Things You Need to Know

1. Every home is in a flood zone.
According to the National Flood Insurance Program (NFIP), nearly 20% of all flood insurance claims are made by homeowners living in areas considered a low risk for a flood. That means regardless of whether your mortgage company required you to purchase flood insurance, your home is in a flood zone.

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2. No homeowners insurance policy covers flooding.
It’s a common misconception that homeowners insurance covers flood damage, but the truth is only flood insurance covers flood damage. Without it, the cost of the damage comes out of your pocket.

3. You can’t rely on the federal government to pay for flood damage.
Federal assistance is only available if the president declares an area a disaster. Even then, the assistance is not compensation for your losses, but rather a low-interest loan that requires repayment with interest, along with your mortgage.

4. Flood losses are costly.
Most people don’t realize that just a few inches of floodwater can do thousands of dollars worth of damage. In a 2,000 square foot home, two inches of water can cause as much as $21,000 or more in damage to your home and its contents.

5. Preferred-risk flood polices are affordable.
The cost of protecting your home from flood damage can be as little as $1 per day. That’s less than the cost of a cup of coffee.

Building Coverage Contents Coverage Annual Premium Cost Per Day
$20,000 $8,000 $171 $0.47
$30,000 $12,000 $209 $0.57
$50,000 $20,000 $271 $0.74
$75,000 $30,000 $316 $0.87
$100,000 $40,000 $349 $0.96
$125,000 $50,000 $366 $1.00
$150,000 $60,000 $389 $1.07
$200,000 $80,000 $425 $1.16
$250,000 $100,000 $450 $1.23

Talk with a helpful AAA Insurance Agent today about purchasing flood insurance.
Request a quote or call 877.288.4546.

Rates effective April 1, 2016 . These PRP rates are for 1-4 Family Residential without a basement or enclosure. Other residential building and contents coverage combinations are available. Premium includes a 15% Reserve Fund Assessment, $25 Federal Policy Fee, Increased Cost of Compliance, and $25 HFIAA surcharge for policies covering primary residences only if the named insured’s primary residence is a single-family dwelling, an individual condominium unit, or an apartment in a non-condominium building. Add $225 to the HFIAA surcharge for all other policies. Add the $50 Probation Surcharge, if applicable. Deduct the Increased Cost of Compliance if the risk is a condominium unit.

Flood insurance through AAA Insurance Company is underwritten by a participating insurer of the National Flood Insurance Program (NFIP). The NFIP is administered and regulated by the Federal Emergency Management Agency (FEMA).

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