When finding coverage for your clients, it’s crucial to consider all aspects of their needs. Sometimes, clients don’t realize the risks they face. Flood insurance is a huge misunderstood topic when it comes to property and home insurance. Most people believe that these insurance policies automatically cover flood insurance, but this isn’t true. Flood insurance must be purchased as a separate policy. Get flood insurance quote
Not everyone needs flood insurance, however. If your client has home insurance with your agency and lives in an area where floods are rare or nonexistent, flood insurance could be just an unnecessary cost every month. Other clients may think they don’t need it but face the some of the heaviest risks of floods.
States with the Worst Floods
Certain states are more prone to heavy and destructive floods. The states with some of the worst floods include:
Florida sits near or at sea level nearly surrounded by water, meaning it’s more prone to floods. With its frequent thunderstorms, tropical storms and hurricanes, Florida is known for having tons of damage from floods every year. Certain areas are more prone to floods than others, but clients in Florida are more likely to need flood insurance than clients in most other states.
In 2016, over 146,000 homes flooded, resulting in 13 deaths in Louisiana. This state receives heavy and frequent rainfall, leading to frequent floods.
3. New Jersey
New Jersey is another state on the coast that receives frequent deadly floods that cause mudslides, millions of dollars in damage and even death.
California is a state that sees many environmental perils. Earthquakes and floods threaten California homes often. Many residents live under a meter above sea level, and that sea level is predicted to rise. As the danger of flooding increases, so does the necessity for flood insurance.
5. New York
With the threat of hurricanes, New York homes often face the danger of flooding. It’s predicted that New York will face $3.7 billion in flood damage by 2030.
Certain areas of Texas are more prone to floods due to proximity to the Gulf of Mexico. Throughout Texas, however, torrential rain has become more frequent every year. Flood damage near the Gulf is common, but still most residents don’t carry a flood insurance policy.
Other states prone to flooding include Texas, Alabama, Georgia, Washington, North and South Carolina, and Massachusetts. Clients living in these states should consider investing in flood insurance to protect against possible losses.
Areas are more likely to flood are those located
• On the cost
• Near bodies of water such as rivers, lakes or oceans
• Near or at ocean level
• Without proper draining systems
• In flat areas with little to no runoff
In some areas, flood insurance is required because there is such a high risk of flood damage. Insurance agencies should be aware of high-risk flood areas so they can adjust policies appropriately.
Who Needs Flood Insurance
Besides location, certain clients should invest in flood insurance simply because of the losses they stand to incur without it. Examples of clients who need flood insurance are:
• Homeowners and renters in high-risk flood areas
• Businessowners in high-risk flood areas
• Businesses that store products or equipment in warehouses
• Homeowners, renters and businessowners that own expensive equipment or items
Educating your clients on the risks of floods is crucial to getting them the right policy. Flood damage can cause thousands of dollars in damage to a home or business, and items ruined by a flood won’t be covered by a regular homeowners or property insurance policy.