According to FEMA, “floods are the nation’s most common and costly natural disaster and cause millions of dollars in damage every year. Floods cost America, on average, $8.2 billion each year.” So, why are 9 out of 10 homes not insured for flood damage?
Let that soak in. Only 10% of U.S. homeowners purchase flood insurance.
That means 90% of homeowners are left uninsured and 90% of your personal lines book is a cross-sell opportunity. These are the best leads to bring in extra revenue and protect yourself against a potential E&O claim.
Need to convince your clients that that flood coverage is important? Check out the below article by FEMA to show just how important it is to have flood insurance.
Spring Flooding: Your Increased Risk
By FEMA | National Flood Insurance Program
It’s both spring cleaning and spring flooding season, so it’s time to make sure your property is in tip-top shape. Spring brings warmer weather which comes along with melting snow, mudflow, and changing or increased precipitation patterns that can increase your area’s flood risk. Just an inch of water in your home can cause $25,000 in damage (and set back your spring-cleaning progress).
Make sure everything on your spring checklist is taken care of by purchasing flood insurance. FEMA’s National Flood Insurance Program (NFIP) can help you protect the life you’ve built against financial damage after a flood and start the road to recovery quicker. Talk to your local flood insurance agent today to check the last box on your list and get the coverage that’s right for you.
Understand Your Coverage
It typically takes 30 days for your policy to go into effect, so the time to act is now.
The Cost of Flooding
See just how much flood damage can cost you. Remember: with flood insurance, you’re able to recover faster and more fully.
Flood Maps
No matter where you live or work, some risk of flooding exists. Know your flood risk by finding your community’s flood map now.
How to Reduce Your costs
Lowering your flood risk can lower your costs. Learn more about mitigation strategies and related discounts.
Survivor Story
Marty Severson, a retired veteran from Sparta, Wisconsin, experienced significant flood damage to his home when a nearby river overflowed its banks. With the help of flood insurance from the NFIP, he was able to recover faster.
Think You Don’t Need Flood Insurance? Think Again
No home is completely safe from potential flooding. When just one inch of water in a home can cause up to $25,000 in damage, flood insurance can be the difference between recovery and financial devastation. Flood insurance brings you peace of mind, even…
If you already have a homeowners insurance policy.
Most homeowners insurance does not cover flood damage. Only flood insurance covers the cost of rebuilding after a flood.
If your community has never flooded.
Flooding can happen anywhere at any time. Poor drainage systems, summer storms, melting snow, neighborhood construction, and broken water mains can all result in flooding.
In high-risk areas, there is at least a 1 in 4 chance of flooding during a 30-year mortgage.
If you live outside of the high-risk flood area.
Even though flood insurance isn’t required for your property, flooding can happen to anyone. In fact, from 2014 to 2018, policyholders outside of high-risk flood areas filed over 40 percent of all NFIP flood insurance claims and required one-third of federal disaster assistance for flooding.
If you’re renting a property.
It’s likely your landlord has flood insurance that covers the building, but not its contents. Affordable, contents-only flood insurance will help you protect the items inside of your unit in the event of a flood.
If flood damage in your home could be covered by federal disaster assistance.
FEMA’s Individual and Household program is only available if the President declares a major disaster declaration, and most flood events do not result in a declaration. Disaster assistance typically comes in the form of loans that must be repaid — with interest!
Disaster assistance from FEMA and the U.S. Small Business Administration is designed to kick-start recovery but is not enough to restore your home to its pre-disaster condition or to replace your treasured household items.
Flood insurance does not have to be paid back, and it is designed to restore your property to its pre-disaster condition. There is no better way to protect the life you’ve built than with NFIP flood insurance.
This article was written by FEMA, National Flood Insurance Program. The original article can be viewed here.
If your clients are in need of flood insurance, Selective’s Flood Insurance Program offers competitive commissions and special arrangements for book rolls while also providing superior service and an online system designed to make writing flood insurance easy and profitable. Learn more here.
