Floods are the single most common natural disaster that afflicts homes in North America, but flood insurance is held by only a tiny fraction of homeowners.

What homeowners need to know about flood insurance

January 6th, 2016 by admin

Floods are the single most common natural disaster that afflicts homes in North America, but flood insurance is held by only a tiny fraction of homeowners.

Your home & auto insurance can go a long way towards helping pay the damage caused by a disaster. From fire to burglary to tornados, standard coverage covers a variety of the more common hazards facing a home. But one natural disaster that occurs more that almost any other may not be covered: flooding.

Floods are the single most common natural disaster afflicting homes in North America, but flood insurance is held by only a tiny fraction of homeowners. Many simply are not aware that their existing standard policy often will not cover floods — nearly 33 percent of policyholders, according to a recent study conducted by the National Association of Insurance Commissioners.

Other policyholders may simply pass on the optional coverage, thinking that the areas they live in aren't at risk of flooding. This can be dangerous: "risk" of flooding can change dramatically depending on weather patterns and precipitation levels in a given year. 

"Floods can occur anywhere," says Corise Morrison, executive director of residual markets for United State Automobile Association. "Low risk does not mean no risk."

Homeowners in high risk areas have a 26 percent chance of having at least one flood during the 30-year lifespan of their mortgage.

"Floods are the most costly natural disasters in Canada in terms of property damage," reads a report by the Public Safety Department of Canada. "They can occur in any region, in the countryside or in cities, at virtually any time of the year.

Don't take a chance and find yourself not covered in the event of a flood. Contact Fundy Mutual to find out what your policy currently covers and how we can help protect your most valuable assets.