Although 81 percent of Americans know that standard homeowners’ insurance policies do not cover flood insurance, only about ten percent of Americans actually hold the flood-insurance policies that they need in order to protect their homes. Despite the fact that flooding is the number-one natural hazard in the United States and that natural disasters like Hurricane Sandy have demonstrated that anyone can fall victim to water damage, most Americans simply are opting out of investing in flood insurance protection. “People need to wake up to the fact that they may need flood insurance,” said analyst Doug Whiteman. He noted that even though there was a surge in new flood-insurance policies after Hurricane Sandy, still only one in 10 homeowners has one[1].

Also problematic: 18 percent of homeowners know they need flood insurance and suspect they may not have it but still plan to rely on their standard homeowners policy in the case of an emergency – aquatic or otherwise. Since standard policies specifically exclude flood-related damage from their coverage, this is a terrible plan[2]. Flood insurance can be obtained through the National Flood Insurance Program (NFIP). Do you have flood insurance? Why or why not?

Your comments and questions are welcomed below.




by Carole VanSickle