As an expert in flood insurance analysis, it’s important for me to shed light on the limitations of FEMAs flooding maps. Despite their value in guiding lenders through whether flood insurance will be required or not, it’s essential to understand that FEMA flood maps are far from perfect. In fact, they often suffer from bloated timelines and pressures from powerful entities.
Did you know that it can take up to 18 months to finalize a flood insurance rate map? And that’s just the beginning. From there, the true risks are often downplayed or ignored by government officials, land developers, and real estate professionals some of who care more about profits than safety. All the while, the trained map engineers who create these vital documents in the first place are forced to repeatedly redraw them based on political pressures. As someone who understands the importance of accuracy and transparency, it’s my duty to raise awareness about these issues and advocate for a better system.
Disaster in the form of water hits.
Many of the structures that have been damaged are not covered by flood insurance or are inadequately covered. In such cases, the cost of repairs falls entirely on the owners, who may struggle to pay for the damages out of pocket. Therefore, it is essential for every property owner to ensure they have sufficient and appropriate flood insurance to protect their assets against unforeseen damages.
Flood victims often lament, “I had no idea I was living in a flood zone,” or “Who’d have thought the 100-year flood would arrive now?” (refer to my piece “The Myth of the 100-Year Flood“).
Did you know that while the chance of having a household fire (covered by your homeowner’s insurance) is a mere 0.276%, the likelihood of experiencing a flood is 28%, especially if you reside in a high-risk area? It’s unfortunate that many tend to overlook the significant disparity between these risks by just varying the decimal point. If a flood takes away everything you have, would you be prepared? Remember, the possibility of such an occurrence is much higher than the fire coverage you pay for monthly.
Let’s examine this from a business owner’s perspective.
Imagine this: a small “Mom & Pop” business that pours all its resources into crafting a family enterprise is hit by a disaster like Hurricanes Harvey and Irma. They lack proper flood insurance. The consequences can be severe. With the establishment temporarily shut down, there are extra expenses for moving to and operating from a temporary site. A key client may be lost due to the inability to deliver goods or services. Worse, a vital employee may depart because their home was damaged and they have to move. And what if money and resources were spent on an event that has to be canceled, relocated or cannot be completed on time? These are very realistic business scenarios that could lead to incalculable losses. For a year, commercial flood insurance coverage may have cost the business between $699 – $1500, and yet it would have saved them from substantial financial setbacks. Mind you, we haven’t even talked about collateral damage to the building and its contents.
It’s important to get covered. With so many insurance options, working with an expert can safeguard your property and expenses. Contact us at 866-990-7482 for assistance.
Written in the wake of Hurricane Harvey 2017.
Reflecting on the unprecedented devastation from back-to-back hurricanes Harvey and Irma in 2017, images of the resulting damage are not hard to come by.
Now that the storms have subsided and water levels are lowering, it is time to evaluate the extent of the damage and commence restoration or rebuild processes where necessary. From drenched floors and furniture to ruined gadgets and garments, not to mention discovering your neighbors’ possessions on your lot, everyone has their own way of dealing with this crisis. My clients have expressed feelings of being violated, lamenting that robbery would have been more preferable; at least there would be hope of a return undiminished.
The scary fact is most of the individual’s whose property was flooded, did not have flood insurance.