Protecting Your Home Against Flood Loss

From 2011 to 2015, the average residential flood claim was more than $43,000.¹

The financial loss that comes with flooding can be devastating. Yet, many Americans are not protected against flood damages, primarily because flooding is not covered under a standard homeowners policy.²

Low vs. High Risk

Even if you are in a moderate-to-low-risk area—homes not residing within mapped high-risk flood plains—you could suffer flooding at some point. In fact, moderate-to-low-risk areas account for nearly 25% of all National Flood Insurance Program insurance claims and one-third of federal disaster assistance for flooding.³

To protect yourself from the financial risks of flooding, you can consider purchasing insurance through the National Flood Insurance Program, which you can obtain through a local insurance agent.³ However, to be eligible, you will need to live in a community that participates in the program.

Coverage Choices

If you live in a moderate-to-low-risk area, you may qualify for coverage at a preferred rate, with building and contents coverage for one low price.

If you live in a high-risk area, the National Flood Insurance Program offers separate coverage for buildings and contents.

The cost of flood insurance depends on a number of factors, including the age of your home, the number of floors and the location of contents, your flood risk, and the deductible and level of coverage you choose, among other things.

  1. National Flood Insurance Program, 2017. Most recent figure available.
  2. Several factors will affect the cost of flood insurance, including the age of your home, number of floors, and the location of contents. You should consider the amount of your deductible and level of coverage before purchasing a flood insurance policy.
  3. FEMA.gov, May 12, 2017

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2017 FMG Suite.

Share |
 

Related Content

The Other Sure Thing

The Other Sure Thing

Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?

Gap Insurance for Leased Cars

Gap Insurance for Leased Cars

If you’re thinking of leasing a new car, then you shouldn’t forget about gap insurance.

Long-Term-Care Protection Strategies

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

 

Have A Question About This Topic?







Thank you! Oops!

Can Group, Private Disability Policies Work Together?

Loss of income from disability has the potential to cause financial hardship. Disability insurance can help.

The Anatomy of a Supplemental Health Plan

Here’s a guide to explain all the parts of Medicare.

Protecting Your Home Against Flood Loss

Protect yourself against the damage that your homeowners policy doesn’t cover.

View all articles

Assess Your Life Insurance Needs

This calculator estimates how much life insurance you would need to meet your family's needs if you were to die prematurely.

Long-Term-Care Needs

Determine your potential long-term care needs and how long your current assets might last.

Lifetime of Earnings

Estimate how much you have the potential to earn during your working years.

View all calculators

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

Protecting Those Who Matter Most

The importance of life insurance, how it works, and how much coverage you need.

View all presentations

The Other Sure Thing

Though we don’t like to think about it, all of us will make an exit sometime. Are you prepared?

Extended Care: A Patchwork of Possibilities

What is your plan for health care during retirement?

Your DNA Test

If your family relies on your income, it’s critical to know what their needs would be in the event of your death.

View all videos