With this past years string of hurricanes, and especially in the wake of Hurricane Irma hitting the sunshine state, many Floridians have decided to purchase flood insurance. But, a common question that we hear is whether or not flood insurance should be purchased for everyone, including homeowners who own a home outside of a major flood zone.
According to a USA Today report, 19 separate major floods swamped the nation last year, the most in one single year since records began in 1980. And flooding can happen anywhere at any time.
“If you are fortunate enough to live in South Florida where it rains, and rains a lot, you have the possibility of being flooded,” said Max Mayfield of Miami’s Local 10 News.
Even two to three inches throughout your house will cause thousands of dollars in damage, yet only 41% of homeowners have purchased the federally backed flood insurance that would cover the damages.
Homeowners facing heavy losses without insurance have few choices: Liquidate savings, if they have them, to make the fixes. Borrow the money. Get their home safe enough to live in, if possible, and make incremental improvements over time. Or walk away from the investment and let the bank foreclose.
FEMA emergency assistance grants are rarely enough to bring flooded homes back to pre-flood condition. The maximum post-disaster grant is $33,300, but the average paid to individuals or households is $4,000 to $6,000. That’s intended to cover temporary housing, lodging reimbursement, child care expenses, vehicle repairs, funeral assistance, medical and dental care caused by the disaster, and just enough repairs to bring a home into “a safe and sanitary living or functioning condition,” according to a FEMA fact sheet.
FEMA’s disaster grant program “is not a substitute for insurance and cannot compensate for all losses caused by a disaster,” the fact sheet says.
The bottom line is, flood insurance is definitely recommended for anyone that owns a home in the state of Florida. With the program federally backed and regulated, and the chances that you could encounter a flood at some point in your home, flood insurance is a must for any Florida homeowner.
If you’re unsure of your Florida flood zone, or have questions regarding flood insurance, call today to speak to one of our experienced flood insurance agents. We’ll be glad to answer any questions that you may have.
