The Gardner Group Blog

Alycen Delrie
Alycen Delrie Agency of Farmers Insurance
(512) 280-5977

Devastating floods occur throughout the United States every year. The risk of flooding increases as weather patterns change, coupled with overdevelopment and leveling of forests that reduce the land's natural ability to absorb water. Even those who don't live near water are at risk. Flooding causes more than $2 billion in property damage every year. Fortunately, Flood insurance is available to cover homes and businesses and their contents in communities that participate in the National Flood Insurance Program (NFIP). Here are some myths and facts you should know about Flood insurance:

Myth: "It won't happen to me."

Fact: You don't have to live by water to be at risk. Approximately 25 percent of all flood claims occur in low- to moderate-risk areas.

Myth: "My homeowners insurance is enough."

Fact: Homeowners insurance does not cover flood damage - federal flood insurance does. Flood insurance also covers damage from mudflow, dirt and debris resulting from moving water.

Myth: "I don't need flood insurance."

Fact: Homeowners with mortgaged property in a Special Flood Hazard Area (SFHA) are now required by federal law to obtain flood insurance. Lenders must comply by requiring flood insurance on the outstanding mortgage balance for the life of the loan.

Myth: "The government will pay."

Fact: To receive federal disaster assistance, a flood must first be declared a federal disaster by the U.S. president. Less than 50 percent of the floods that damage homes across the country every year wind up being classified as federal disasters.

Myth: "Flood insurance is expensive."

Fact: Flood insurance is affordable. Flood damage is not. The average loss of property and contents from the 2007 flooding in Marble Falls, Texas was more than $25,000. Compare this to the average annual flood premium of $350. Your coverage is based on your home's value, minus your land value. Flood insurance up to $250,000 is available for residential buildings. Since flood policies are backed by the U.S. government, all valid claims are 100 percent guaranteed.

Myth: "Flood insurance covers contents."

Fact: Standard flood coverage doesn't cover the contents of your home. Separate Contents coverage is available up to $100,000. Preferred Risk policies for structures in low-risk areas offer "combination coverage" of up to $250,000 for a residence and $100,000 for its contents. A separate contents deductible applies on all contents claims.

Myth: "I can buy flood insurance anytime."

Floods can happen anytime: There is a 30-day waiting period between purchasing a flood policy and being covered by it.

Here are a few exceptions to the 30-day wait:

• There's no waiting period if you have an existing flood policy and an additional amount of flood insurance is required with making, increasing, extending or renewing of a loan, such as a second mortgage, home equity loan, or refinancing. Coverage is effective immediately, as long as the premium is presented at or prior to loan closing.
• There's no waiting period when flood insurance is required by a lender for a loan. Coverage is effective immediately, as long as the premium is presented at the completion of a loan application.
• There's a one-day waiting period when an additional amount of insurance is required as a result of a map revision. This applies when the map revision from a non-Special Flood Hazard Area to a Special Flood Hazard Area, only if the endorsement is received within 13 months of the map revision. The increased amount of coverage will be available 24 hours after the amount of coverage is applied for and the additional premium is made.

Discover the advantage of personal service from the Alycen Delrie Agency

When you're covered by the Alycen Delrie Agency of Farmers Insurance, you have a personal, professional agent helping you every step of the way. Here's how the personal touch can make a difference to you:

• I will work with you to identify your needs and find the right coverage for you.
• You won't be alone when you need assistance or go to file a claim - you'll deal directly with me and my staff.
• I will review your policy each time that it renews in order to insure you are properly insured.
• Should an unfortunate incident occur, my agency will be there to help get you back where you belong.

I will be glad to speak with you at your convenience to discuss flood insurance and share with you the benefits of allowing Farmers to provide you with flood insurance. If this sounds good to you, please give me a call at (512) 280-5977 and I will give you - without obligation - a free flood insurance quote.