Four myths about flood insurance
Four myths about flood insurance. Most homes in Florida are at risk of flooding at some point, even if they are not located in a high-risk area. More accurate studies suggest that 26% of homes in the state will experience severe flooding in the coming decades. The characteristics of Florida, whether it’s a storm surge, a hurricane, river overflow, or a heavy downpour, contribute to submerging any area under water.
Despite this reality, which is evident every year, there are multiple myths about flooding in Florida.
- Myth #1: Homeowner’s insurance covers damages caused by flooding.
Reality: Most homeowner’s insurance policies do not cover damages caused by floods. They cover other events such as fire, theft, vandalism, and roof damage from wind, but specifically exclude floods.
- Myth #2: People in low-risk areas don’t need flood insurance.
Reality: Although it may seem logical, it is not true. One-fourth of flood claims in Florida come from areas considered low-risk.
- Myth #3: You can’t purchase flood insurance immediately before or during a flood.
Reality: You can purchase flood insurance whenever you want. However, most policies have a 30-day waiting period before the coverage takes effect. Some insurers may have shorter waiting periods of 10 or 20 days.
- Myth #4: Disaster assistance is the same as flood insurance.
Reality: Federal FEMA assistance is not always available. To activate federal aid, the president must declare the area a “disaster area.” Despite that, federal assistance often involves providing low-interest loans to repair and replace damages. However, the financial compensation provided by typical flood insurance allows the covered home to return to its pre-event condition. In other words, the money received is sufficient to repair everything damaged by water.
It is expected that flood damages will increase as this phenomenon becomes more frequent in the future. If you live in Florida and are looking for flood insurance, call Univista Insurance to obtain the water coverage that best fits your home and budget. Four myths about flood insurance.