If you live in Florida, then you know that our state is no stranger to hurricanes. In fact, we’re currently in the midst of hurricane season and have already seen several storms come and go.
While most of us are fortunate enough to escape major damage, there are always a few unlucky souls who end up bearing the brunt of the storm.
Take, for example, the recent case of Hurricane Ian. It’s been estimated that the damage from this hurricane will total around $16 billion—and yet, only 20% of Floridians in vulnerable areas carry flood insurance.
This means that many people will be left to foot the bill for damages out of their own pockets. Even if you have homeowner’s insurance, it’s important to remember that most policies do not cover flood damage. So, what can you do to protect yourself? One solution is to purchase flood insurance.
Citizens Property Insurance Corp. policyholders who did not carry flood insurance may end up in claims disputes with the insurer over whether the damage was from wind or water.
The issue is that most people aren’t aware that floods from natural disasters are not covered by their homeowners insurance policy.
This means that if you live in a hurricane-prone area, such as Florida, it’s important to invest in flood insurance as soon as possible.
Is there a solution?
One solution to this problem is to require all Citizens policyholders to purchase flood insurance, no matter where they live in Florida.
This idea was discussed in the Legislature in the mid-2000s but never got off the ground. A flood coverage requirement also might help solve another problem: Citizens’ runaway growth, fueled in part by its statutory caps on rate increases. If all Floridians were required to purchase flood insurance, it would create a larger pool of policyholders and spread the risk around, helping to keep rates down for everyone.
What is Flood Insurance?
Flood insurance is a type of insurance coverage that helps to protect your home and belongings in the event of a flood. While standard homeowner’s insurance policies typically do not cover flood damage, most insurers offer some form of flood insurance as an add-on to your existing policy.
There are two types of flood insurance: one for building coverage and one for contents coverage. Building coverage helps to protect the physical structure of your home, while contents coverage protects your personal belongings like furniture, clothes, appliances, etc.
Typically, flood insurance policies have a waiting period of 30 days from the date of purchase before they go into effect. This means that it’s important to think about buying flood insurance well in advance of a storm. That way, if a hurricane does hit, you’ll already be covered.
Why You Should Consider Purchasing Flood Insurance
If you live in Florida, then purchasing flood insurance is always a good idea. As we’ve seen time and time again, our state is susceptible to hurricanes and other natural disasters that can cause extensive damage. By investing in flood insurance now, you can protect yourself from having to pay out of pocket for repairs later on down the road.
Not only will buying flood insurance help to protect your finances, but it may also help to reduce claims disputes with your insurer if the damage is caused by both wind and water. Currently, many Citizens Property Insurance Corp. policyholders are facing such disputes because they did not carry flood insurance at the time their homes were damaged.
During hurricane season, it’s important to be prepared—not just for potential damages but also for the financial fallout that can occur as a result of those damages.
If you don’t have flood insurance, now is the time to start considering it as an option for protecting your home and belongings. It’s better to be safe than sorry!
What do you think?
Should flood insurance be required for all Floridians? Do you think it would help to solve Citizens’ runaway growth?