Unfortunately for Californians, this year’s floods are already here. As predicted, the rains 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’s a bad argument. Although the floods we experience in California are different, they are certainly not non-existent.
Luckily for many San Francisco Bay Area residents, flood insurance can be affordable 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 it costs more than 9 or even 10 times more. Of course, there are many other qualifying factors involved, such as the exact elevation of your home and the foundation you have. Customers who live 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, that’s a high number.
In a recent CNBC article, now titled California’s El Nino floods keep roofers and insurers busy. The article gives the impression that you can get insurance for only $400 or $500. And while that may be true for some, it’s not true for those living on higher peril flood insurance. The $400 price is generally more associated with what’s known as a Preferred Price, which many customers can and will qualify for.
What should a customer who lives in a high risk flood zone in California do? Comparing prices with flood insurance may not help them as much as regular homeowners insurance (home insurance). However, there are certain times when a private flood provider may make sense. Many agents are unaware of these options.
Of note, 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 closer. Time is running out.
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