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The Cost of Not Buying Flood Insurance

oswaldcompanies June 19, 2023

Flooding events cause billions in damage each year and can occur anywhere. While most consumers do not believe they will be affected, 99% of the counties in America were impacted by flooding between 1996 and 2019, according to the Federal Emergency Management Agency.

A flood is caused by mother nature through snow, coastal surges, damaged levees and extensive rainfall, including heavy rains caused by hurricanes.

All property owners should consider flood insurance, as flooding is the most common natural hazard and can occur in any part of the country at any time. This spring season, approximately 146 million people are at risk for flooding in their communities, according to the U.S. Department of Health and Human Services. It is important to remember that everyone is in a flood zone, it is just a question of whether you live in a low, moderate or high-risk area.

Flood coverage is typically excluded from property insurance and since many consumers fail to purchase flood insurance, this results in significant out-of-pocket costs when flooding occurs. Additionally, for coastal property owners, while damage from wind-driven rain is typically covered under hurricane protection, hurricane insurance does not typically cover flooding.

Primary flood insurance generally provides $250,000 in coverage for the dwelling and $100,000 for the contents inside the dwelling. Flood coverage can also be purchased as a condo unit owner or even a renter. Flood insurance can be purchased starting at just a few hundred dollars a year in low-risk zones. In addition, excess flood insurance may be available up to your home’s replacement cost value.

You’ve worked hard for your home and its contents, don’t let a flood take it all from you in an instant. Oswald can help you find the right protection.

Related Content:

DO I NEED FLOOD INSURANCE? Flood Insurance | Chubb

For more information, visit our Personal Risk page or contact us direct.



Note: This communication is for informational purposes only, and is not intended to offer legal, tax, or client-specific risk management advice. Information in this communication is not meant to describe specific coverages that may be advisable or available to you or your company, or to interpret specific coverages that may already be in place. General insurance descriptions in this communication do not include complete insurance policy definitions, terms, and/or conditions, and should not be relied on for coverage interpretation. Actual insurance policies must always be consulted for full coverage details and analysisView our privacy notice.