Flood Insurance, Do You Really Need It?

June 10, 2014

Many homeowners decide to go without flood insurance. Some people figure the odds are low that anything will happen, while other people think that a flood is covered under their current policy. Let us correct you; unless you have added flood insurance coverage, it is excluded. We agree that the probability is low, nonetheless, it does exist. Now is the time to consider Friday Harbor flood insurance.

In 2012 NFIP proposed reforms that would result in premium increases across the nation. Some properties will be hit harder than others. The Biggert-Waters act severely impacted older properties that will be losing special grandfathered rating. There is a bipartisan bill that if passed would help with the premium increases in the Biggert-Water act.

News Update

Recent legislation passed and was signed into law on March 26, 2014. The Homeowner Flood Insurance Affordability Act limits yearly premium increases to an average of 15 percent per year for each of the nine property categories listed by FEMA, and stipulates that no individual policyholder pay an increase of more than 18 percent per year. The bill also reinstates the flood insurance program’s grandfathering provision, meaning homes that complied with previous flood maps would not be hit with large increases when new maps show greater risk of flooding.

If your home is in a flood zone, the National Flood Insurance Program (NFIP) offers coverage and we can help you secure affordable coverage. If you have property that had grandfathered rates, we can offer help. We will review your property and location and review the NFIP and other private markets with whom we have relationships with. We bring our expertise to provide you with the best possible combination of coverage, price and service.

Flood insurance is all about understanding risks, and not every business or homeowner is equally at risk for flood losses. Your risks depend on how close you live to rivers, streams, lakes or flood zones, or how well your home was built to withstand losses. Some mortgage companies may even require flood insurance, depending where your home is located. The last thing we want is for you to be knee deep in water without the proper insurance.

When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not federally declared. Flood insurance means you’ll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid.

In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it’s already too late. You will not be insured if you buy a policy a few days before a flood.

Safe Harbor Insurance knows that in Washington, there are as many unique insurance needs as we have neighbors who live here! To talk with one of our helpful team members about your insurance needs, contact us today.

Serving, Friday Harbor, Puget Sound, Seattle, Anacortes , Orcs Island, Lopez Island, Skagit County and the entire State of Washington.