Unfortunately for Californians, this year’s floods are here. As predicted, the rains have come from our long drought. After three years, the rain gods have responded.
A common misconception in California is that only people in the Midwest need flood protection and that is a poor argument. Although the flooding we have in California is different, it is certainly not non-existent.
Luckily for many San Francisco Bay Area residents, flood insurance can be affordable for you if you live in a good flood zone and your community participates in the National Flood Insurance Program, also known as NFIP. . National Flood Ins is essentially backed by the US National Government through the Department of Homeland Security.
Customers who live in flood zones A and V will unfortunately pay much more in flood insurance costs. Sometimes more than 9 or even 10 times that cost. Of course, there are many other qualifying factors involved, such as the exact elevation of your home and what foundation it has. Customers living in these so-called high-risk flood zones are increasingly being given the 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 CNBC article, now titled El Niño flooding in California keeps roofers and insurers busy. The article gives the impression that Insurance can be had for only $400 or $500. And while that may be true for some, it’s not true for those living in higher peril flood insurance. The $400 price is typically more associated with what’s known as prime pricing, which many customers can and will qualify for.
What should a customer who lives in a high risk flood area in California do? Buying flood insurance is not likely to help them as much as regular homeowners insurance (household insurance). However, there are certain times when a private flood provider may make sense. Many agents are not aware of these options.
It should be noted 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 takes effect.
So, is it too late to buy flood insurance, Californians? I personally don’t think so, but it’s getting close. The time is finishing.
