Did You Know that Flooding is America’s No. 1 Natural Disaster?

It can happen in all 50 states. That leaves a lot of residents and business owners vulnerable to the risks of floods. However, many Michigan residents don’t currently have flood insurance.

Our clients may have misinformation about the National Flood Insurance Program (NFIP), and you might not know when, where, or how to purchase flood insurance — CIA Insurance wants to set the record straight by separating fact from fiction.

Top Myths About Flood Insurance:

  1. MYTH: You can’t buy flood insurance if you do not live in a high-risk mapped floodplain.

    Flooding can occur anywhere, not just designated high-risk areas. Anyone may purchase flood insurance, regardless of their designated risk. We are here to help you understand their flood risk by reviewing your community flood map on the Federal Emergency Management Agency (FEMA) Map Service Center with you.

  2. MYTH: You can’t buy flood insurance if you are located in a high-risk flood area.

    This is when you need it the most! Anyone can buy flood insurance in a participating NFIP community. There are also options for purchasing private flood insurance. Regardless, it takes 30 days for a policy to go into effect, so now it is important that you do not put off your flood insurance needs until its already a problem!

  3. MYTH: Your homeowners, business, or renters insurance includes flood insurance.

    Spoiler: It almost always does not include flood insurance! To protect your home from flood damage, you typically need a separate flood insurance policy. Business owners and renters should also purchase a flood insurance policy to protect their business or contents in the event of a flood.

  4. MYTH: You can’t purchase flood insurance if your property has been flooded before.

    Actually, you can! You are still eligible to purchase flood insurance after your home, apartment, or business has flooded if your community participates in the NFIP.

  5. MYTH: Federal disaster assistance will always pay for flood damage.

    Not always, and not all of it. Disaster assistance won’t always be available for flood damage, and if it is, it won’t pay for all damage. It requires a presidential disaster declaration and often comes in the form of a U.S. Small Business Administration disaster loan. Insurance is your best means of recovery from any disaster.

We encourage you to use the Cost of Flooding Tool to help you see just how much flood damage could cost you. In fact, just one inch of water can cause up to $25,000 of damage to their home.

Thank you for educating yourself in these common myths about flood insurance. With growing abnormal weather occurrences in Michigan and across the nation, it is more important than ever that you protect yourself in a way that will minimize the losses of your assets and financial stability.

Questions, comments, or requests for additional resources? Reach out to info@ciainsurance.com.

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