Uncovering Common Misconceptions about Flood Insurance
By Anthony Bevilacqua
According to the National Flood Insurance Program (NFIP), flooding is this country’s most prevalent natural disaster. In the 10 year period between 1996 and 2005, damage from flooding in the U.S. averaged $2.4 billion annually. Today, there are almost 5 million citizens that take advantage of the NFIP flood insurance program.
However, large numbers of at-risk Americans still refuse to purchase coverage even after viewing the devastation reeked by Hurricane Katrina in Louisiana and Mississippi. Statistics show a home has a 26% chance of damage by flood during a 30 year period, while a home has only a 9% chance of damage by fire during the same period. Yet, less than 1 in 10 homeowners buy flood insurance, but virtually everyone has fire insurance!
Why the lack of respect for protecting against the single most frequent form of property loss? Maybe it’s because some feel that if it is offered by the federal government, it must be tied up with red tape that makes it difficult to obtain. Not true! The federal program has expanded its influence so that any insurance professional can quote, rate and bind coverage in a matter of a couple days.
These are some points to consider when purchasing flood insurance:
To learn more about the ins and outs of flood insurance, contact your insurance professional who can guide you with your flood insurance options.
Anthony Bevilacqua, CPCU is President of Anthony & Company, an independent insurance agency with special insurance and risk management services tailored to the needs of the commercial and residential development community. You can reach Mr. Bevilacqua at (908) 806-8844 or email him at firstname.lastname@example.org.