Floods are one of the most common natural disasters in the world, and they can happen anytime, anywhere. They can be incredibly destructive, causing severe damage to properties and endangering people's lives. Despite these risks, many homeowners and business owners still don't have flood insurance. So, what gives? Here are some of the reasons why people don't buy flood insurance, along with some stats to back it up:
It's too expensive.
Many people don't buy flood insurance because they think it's too expensive. However, the cost of not having insurance can be even more expensive. According to the National Flood Insurance Program, just one inch of flood water can cause up to $25,000 in damage. If you live in a high-risk area, the average cost of flood insurance can be around $700 per year. But, the cost of flood damage can easily exceed $50,000.
They think they're not at risk.
Some people think they're not at risk of flooding because they don't live near a river or the ocean. However, that's not necessarily true. According to FEMA, 25% of all flood claims come from areas that are not considered high-risk. Plus, the risk of flooding is increasing as climate change brings more extreme weather events.
They think their homeowner's insurance covers floods.
Many people believe that their homeowner's insurance policy covers flood damage. However, most standard policies don't cover floods. In fact, only 15% of homeowners have flood insurance, according to the Insurance Information Institute.
They don't know it's available.
Some people don't buy flood insurance simply because they don't know it exists. They may not be aware that the National Flood Insurance Program exists, which is a federal program that provides flood insurance to homeowners and renters. Additionally, private insurance companies also offer flood insurance policies.
They think it won't happen to them.
Finally, some people don't buy flood insurance simply because they think it won't happen to them. However, the statistics show that floods can happen to anyone. According to the National Flood Insurance Program, more than 20% of flood claims come from areas with low to moderate risk.
The risk of flooding is increasing, and the cost of flood damage can be significant. If you're not sure whether you need flood insurance, it's worth speaking with an insurance provider to assess your risk. Don't wait until it's too late.
About The Author
Deena Gallo is an experienced author and speaker in insurance and financial planning with a B. A. in Literature, Digital Marketing, and Education, focusing on educating homeowners and business owners about flood insurance and the National Flood Insurance Program (NFIP). She has developed a deep understanding of communication and storytelling, using this to her advantage in her work. Her background in Education enables her to create engaging content that is easy to understand and learn. Deena Gallo is recognized as a vital thought leader in the insurance industry, where she provides expert insights and educates businesses and individuals on flood insurance and related topics.
