Swimming through Flood Insurance
The following is some great information provided to me by Mitchell Smee of Bratrud Middleton Insurance to share with you all:
FAQ About Flood Insurance
Why do I need flood insurance? I don’t live near water.
People who live near water are not the only ones who experience flooding. Floods move and can spread for miles. They can have strong currents that, in a few moments, can sweep away everything, leaving a thick residue of mud and debris behind. In Washington State, we also have a considerable amount of ground water flooding and ponding that comes about when the ground becomes super saturated with water and has no place to go. Homes, even those on high ground, may be many miles from a river, lake or other body of water and still have damage because of groundwater flooding or ponding. It’s not just the high-risk areas that are flooded. Between 20-25% of flood insurance claims come from a medium or low flood risk area.
Doesn’t my homeowner’s insurance cover flood damage?
Typically, homeowner’s insurance policies do not cover such things as flooding, landslides, and earthquakes. A special policy or rider is needed to cover damage from these as well as other special hazards.
Won’t the Federal Government assist me with flood damages?
Yes, but probably not quite the way you would expect. Federal disaster assistance is only available if the president of the United States declares a disaster. When available, federal assistance is often in the form of a loan–repayable in full–with interest! In contrast, if you have a flood insurance policy, you can be reimbursed for all of your covered losses, even if the president does not declare a disaster.
Isn’t flood insurance expensive?
It depends on your perspective. Consider the alternatives. Paying back a $50,000 disaster loan, for example, will cost an average of $300 per month for approximately 20 years, while the average flood insurance premium is a little over $300 per year for an average of $100,000 of coverage. For most people, a home is by far their most valuable possession. Why risk the financial loss from flood damage when you can protect it with flood insurance?
Is flood insurance ever required?
If you buy a house in a designated high-risk area, and receive a mortgage loan from a federally regulated lender, your lender must, by law, require that you buy flood insurance.
Does my community participate in the NFIP?
The good news is that most communities in Washington State participate in the NFIP, so the chances are good that flood insurance is available to you. Contact your local planning or emergency management office to see if NFIP insurance is available in your community.
Who can purchase flood insurance?
Coverage is available for residential and commercial buildings and contents, and can be purchased by renters:
- Up to $250,000 for single-family, two to four family, and other residential buildings.
- Up to $500,000 for non-residential buildings, including small businesses.
- Up to $100,000 for content coverage for residences for owners and/or renters.
- Up to $500,000 for content coverage for businesses.
Where can I purchase a flood insurance policy?
Call local agent Mitchell Smee (Bratrud Middleton Insurance Broker) 360-824-4954
Mitchell is a Gig Harbor resident with several years of insurance experience. My family has insured both our home and our cars with Mitchell for the past 3 years.
