Flood Insurance: Too Little, Too Late?

Cincinnati Flood are scary words for people in this area. This year brought Cincinnati its worst flooding since 1997! That year – thousands of homes were evacuated, homes and businesses were ruined, and several people lost their lives. Flooding is a challenge in areas like Greater Cincinnati. The City of Seven Hills has valleys and water that comes together to form beautiful river-fronts — and dangerous flood zones. All too often – flood insurance is something people think about way too late…

Have you recently experienced a flood on your property? If so – you know that recovering from a flood can be costly and time-consuming. Removing inches or even feet of water from a building is no simple tasks. Plus restoration companies are in steep demand! The restoration repair work can cost thousands of dollars. This cost can be catastrophic for home and businesses without flood insurance. Flood insurance is incredibly valuable when you have proper coverage in place in the event of a flood.

Reluctant to purchase flood insurance? Some business owners and families are reluctant to make the monthly or annual payment to have flood insurance. Families that purchase flood insurance often report the policy as “worth every penny” if a water disaster strikes.

Know The Basics

Flood Insurance coverage is NOT typically covered in the standard homeowner’s policy or renter’s agreement. Flood insurance is a special add-on to provide coverage against floods associated with events like heavy rain or rapid snow melt. This type of insurance has been available in the United States since 1968. Be advise – that if water rushes in to your home, and you don’t have coverage. your homeowners’ policy will not cover flooding.

Congress created the National Flood Insurance Program (NFIP). NFIP is administered by the Federal Emergency Management Agency (FEMA). NFIP allows homeowners, renters and business owners to purchase flood insurance through private property and casualty insurance agents.

Federal Flood Insurance Qualifications

Qualifying for flood insurance requires your home or business to be in a community that has joined the NFIP. This program expects communities to pledge to enforce “sound floodplain management standards.” NFIP management standards address the actions and investments a particular community must make to reduce the risk of flooding. This results in a ‘more resilient community,’ according to the Federal Emergency Management Agency (FEMA). FEMA estimates that there are roughly 280,000 structures in Ohio’s mapped floodplain areas. FEMA reports these structures have a combined value of $11 billion. Yet only about 10 percent are currently protected by flood insurance.

The Scary 20% of Flood Claims

Your may be required to buy flood insurance if you live or operate a business within a floodplain. Do not take the risk: Flood insurance is still vitally important for homes and businesses outside of flood zones. In fact, FEMA estimates that more than 20 percent of flood claims come from homes and businesses outside of high risk flood zones.

Important Details

Flood Insurance does not immediately go into effect like other types of insurance. Most flood insurance policies go into effect after a 30-day waiting period. Most flood insurance policies do not cover sump pump failures or sewer backups. Drain or sewer backup protection is an add-on, or “rider,” on your existing policy and is usually very affordable. Standard flood coverage ranges from $250,000 for homes to $500,000 for businesses. Excess insurance that exceeds those thresholds is available.

Do not hesitate to call Cincinnatus Insurance at 513-587-3553. We are here to answer your questions about flood insurance for your home or office.