2024 was a year filled with flood disasters from hurricanes, extreme rain events, swelling rivers leading to mudslides, loss of property and loss of life. Even a small flood could lead to extensive repair costs to your home and business. According to the Federal Emergency Management Agency, just an inch of flooding could cause $25,000 in damages that are not covered under property insurance.
Many states are working to address the challenges of flooding with initiatives aimed at enhancing mitigation efforts and encouraging property owners to invest in flood-resistant upgrades. Communities are adopting programs to incentivize flood-risk reduction, such as grants for flood-proofing homes or community-wide flood management strategies.
You can protect your home and business from flooding with proactive measures and preparedness strategies:
- Elevate your home: This can help prevent water from entering your living spaces during a flood.
- Install flood vents: Flood vents let water flow through the structure, which reduces the pressure on walls and foundations and helps to minimize structural damage.
- Implement a drainage system: Installing gutters, downspouts and drainage ditches will direct water away from your property. Regularly clean gutters and drains to prevent blockages that cause water overflow.
- Buy flood insurance: Flood insurance will provide financial resources for repairs to your property and belongings.
Many entities are working to make flood insurance more accessible with easier enrollment and more educational resources. FEMA has implemented a new pricing methodology called Risk Rating 2.0 for the National Flood Insurance Program, which has greatly impacted flood insurance rates but has streamlined the rating process.
Private flood insurance policies can provide coverage for both residential and commercial properties. They may offer more flexible coverage options than NFIP, including higher policy limits, excess coverage, and additional protections for personal property, loss of use, business interruption coverage, and additional living expense to assist while the structure is being repaired. Premiums for private flood insurance vary based on the specifics of the property and the coverage selected. In some cases, private policies may be more affordable than NFIP rates, especially for properties with lower flood risk.
Consult with a knowledgeable insurance agent to understand your options for the best available protection. Carefully review the terms and conditions of your policy.
