Fall Flood Season & Flood Myths

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4 min read · Sep 20, 2022

According to NOAA’s Weather Prediction Center, 75% of all flash floods in the U.S occur from late April to mid-September with 34% of those occurring between June and August. But that leaves plenty of room for disaster to strike in the ensuing months. Don’t be lulled to sleep by the end of summer.

Floods are the costliest natural disaster in America, and for this reason, it is necessary to protect yourself and your property with a flood insurance policy that offer the smartest coverage. Facts are your friends. So, let’s sift through some of the major myths and facts about flood insurance.

MYTH: You can’t buy flood insurance if you live in a high-flood-risk area.

FACT: You can buy federal flood insurance no matter where you live. Now there are some conditions. For example, unless your property is in an area covered by the Coastal Barrier Resources Act of 1982, your community must participate in the NFIP (National Flood Insurance Program). Under the National Flood Insurance Act, lenders must require borrowers whose property is located within a regulatory floodplain to purchase flood insurance as a condition to receive a federally regulated mortgage loan. Perhaps the biggest caveat is this: flood insurance on homes whose lowest floor is at or above the base flood elevation or located outside the mapped floodplain is less expensive. Insurance for homes in the mapped floodplain may cost substantially more.

MYTH: You can’t buy flood insurance immediately before or during a flood.

FACT: You can purchase flood coverage at any time. However, there is a waiting period that varies depending on if you are buying an NFIP (government) policy or a private policy. The NFIP has a 30 day waiting period, which means you have 30 days until your policy is in effect. Private insurance waiting periods can vary. At Neptune, there is a 10 day waiting period, which means you can have coverage almost 3 weeks faster compared to the NFIP.
The NFIP and Neptune both allow same-day coverage for property closings. If you’re about to buy a new home and find out last minute you need flood insurance, Neptune can help get you coverage in just a few minutes.

MYTH: Homeowners’ insurance policies cover flooding.

FACT: You should check with your agent, but almost all homeowners policies do not cover flood. Unfortunately, many homeowners do not realize until it is too late.

MYTH: Flood insurance is available only for homeowners.

FACT: Flood insurance is available to protect homes, condominiums, apartments, and nonresidential buildings, including commercial structures!

MYTH: You can’t buy flood insurance if your property has been flooded.

FACT: The NFIP does not have limitations on coverage based on prior flooding. Private companies may have limitations based on the amount of times a prior flood has occurred and the total loss value.

MYTH: Only residents of high-risk flood zones need to insure their property.

FACT: Even if you live in an area that is not flood-prone, it’s advisable to have flood insurance. About 40% of claims come from moderate-to-low-risk flood areas. The preferred-risk policies are designed for residential properties located in moderate-to-low-risk flood zones and are very affordable.

MYTH: Federal disaster assistance will pay for flood damage.

FACT: A federal disaster declaration must be declared before a community is eligible for federal disaster assistance. This happens in less than 50% of flooding incidents. The main form of federal assistance after a federally declared disaster is a loan, so you have to pay it back, which means you have a new monthly payment due in addition to your existing mortgage and insurance.

MYTH: The NFIP encourages coastal development.

FACT: Wrong. One of the NFIP’s primary objectives is to steer development away from high-flood-risk areas. Laws do not prohibit property owners from building along coastal areas, but they do transfer the financial risk of such buildings from federal taxpayers to those who choose to live or invest in these areas.

MYTH: Flood insurance can be purchased only directly through the NFIP.

FACT: You have more than one option! In addition to private flood insurance like Neptune Flood, federal flood insurance is sold and serviced directly by Write Your Own (WYO) companies or private insurance agents. These companies write and service policies for the NFIP. You can get a private Neptune policy by speaking to your agent or directly on neptuneflood.com.

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As you can see, there are many myths surrounding flood insurance. The spring/summer season may be coming to an end, but the threat of flooding remains. That’s why it’s so important to understand the caveats and exceptions you may need to navigate. This is where Neptune Flood comes in! This is our expertise and our way of helping people like you protect both your loved ones and property. Your Neptune agent is ready and willing to get you quotes for all the different levels of flood insurance coverage, so you can get the level of cover that makes the most sense for you. Contact us today!