When it comes to insurance, so many people have the mindset of “it won’t happen to me!” With this blissfully oblivious outlook comes the lack of investment in such protection measures as flood and contents insurance. If the 2017 hurricane season taught us anything, it’s that these terrifying storms can affect homes far outside the designated high-risk flood areas.
According to the property analytics firm CoreLogic, between $25 billion and $37 billion worth of flood loss hit homes across southeast Texas and southwest Louisiana during the devastation of Hurricane Harvey. Even worse, only about one-fourth of those costs will be covered by insurers. Let us do the math for you — best case scenario still leaves $15.5 billion left to be paid by storm survivors. You may be wondering why the uninsured amount is so high. The answer is painfully simple: The number of people who don’t realize they need a separate flood policy to be protected during these extreme circumstances far outweighs the number of those who do.
A standard homeowner’s insurance policy doesn’t include flood or contents insurance, leaving your home vulnerable to thousands of dollars in uninsured damages should a storm like Irma, Harvey, or Maria occur in the future. When shopping around for flood insurance, be sure to look for a company that has the financial stability to back you in the case of multiple storms. While it’s true that a flood may never impact your home, running the risk of assumption is a scary (and expensive) way to go.