Hurricanes and tropical cyclones are among the deadliest and most damaging events – the total cost for weather and climate disasters in 2021 was $145 billion, according to the National Oceanic and Atmospheric Administration. Acrisure Re’s 2022 Pre-Season Hurricane Outlook report forecasted an above average hurricane season, although with less activity than the record 2020 and 2021 seasons.
With increased hurricane activity on the horizon, the time to buy a flood insurance policy is now. According to FEMA, which runs the National Flood Insurance Program (NFIP), one inch of water inside your home can cause $25,000 or more of damage. Flooding often results in several feet of water, which increases this cost dramatically.
Standard homeowners’ insurance does not cover flood costs, and only 15% of homeowners have flood insurance. Historically, homeowners have only had one option for flood insurance – the NFIP. However, private flood insurance companies typically offer more options, higher limits and better coverage than the NFIP, and often at a lower price.
“Every homeowner should maintain flood insurance. Due to climate change, floods are happening more frequently than ever before and in parts of the country that have never had a history of flooding,” said Dan Freudenthal, Acrisure’s National Flood Practice Leader.
Acrisure introduced AcriFlood in 2020, the insurance industry’s first comparative rater for flood insurance. The rater enables producers and account managers to obtain up to six flood insurance quotes in less than 90 seconds. This innovative tool has been so successful it has been shortlisted as 2022 Broking Initiative of the Year by Insurance Insider.
“Flooding can happen anywhere at any time,” said Freudenthal. “Don’t wait until after you suffer flood damage, because that will eliminate your ability to buy private flood insurance and leave you on the hook for all the costs to rebuild after that first flood. With relatively low costs, every homeowner should consider flood insurance before an event.”
According to FEMA, 99% of US counties have been impacted by a flooding event. Contact an Acrisure Partner to learn about your flood insurance options today.
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Source: https://www.acrisure.com/news-and-insights/us-counties-experience-flooding