Unfortunately for Californians, the flooding this year is here. As predicted the rains have come from our long long drought. After three years, the rain gods have answered.
A common misconception in California is that only the people in the Midwest need flood protection and that is a poor argument. Although the floods that we get in California are different they are certainly not nonexistent.
Lucky for many of the residents of the San Francisco Bay Area, Flood Insurance can be inexpensive you if you live in a good flood zone and your community participates in the National Flood Insurance Program, otherwise known as the NFIP. National Flood Ins is essentially underwritten by US National Government through the Department of Homeland Security.
Clients that live in A and V flood zones, unfortunately will pay much more in flood insurance costs. Sometimes upwards of 9 or even 10 times that cost. There are, of course, numerous other rating factors involved such as the exact elevation of your house and the foundation you have. Clients that live in these so called high risk flood zones are increasing being tasked with a herculean task of paying flood prices that would make the average consumer’s eyes water. Trust me, it’s a high number
In a recent article on CNBC, now titled California’s El Nino floods keep roofers, insurers busy. The article gives the impression that Insurance can be had for only 400 or 500 dollars. And while that may be true for some, it is not true for those who live in higher danger flood insurance. The $400 pricing is usually most associated with what is known as Preferred Pricing, which many clients can and will qualify for.
What should a client that lives in a high risk flood zone in California do? Shopping around with flood insurance is not likely to help them as much as with regular homeowners (home insurance) insurance. However, there are certain times when a private flood provider may make sense. Many agents are not aware of these options.
Of special note is that Floods are almost NEVER covered by your ordinary home insurance. Another special note is that a new flood insurance policy will typically require a thirty day waiting period before it goes into force.
So, is it too late to buy flood insurance, Califorians? Personally I do not think so, but it is getting close. Time is running out.