Lack of Flood Insurance Is Making A Bad Situation Worse

Hurricane Florence may not have made landfall as a category four, but it is still causing catastrophic damage on the East Coast. The Carolina’s are getting hit particularly hard, and unfortunately, also happen to have a significant number of residents that do not have a comprehensive flood insurance policy.

At this point, experts estimate that approximately 250,000 homes in North Carolina alone will be affected by Hurricane Florence. The Hurricane has brought destruction in the form of high winds, waves and, perhaps most devastatingly of all, record-high rainfall.

Insurance estimates won’t be completely accurate until the storm has completely passed. At the moment, most analysts agree that regardless of the final numbers, an alarming number of residents who are affected by the storm are severely underinsured for water-driven events, like Florence.

According to USA Today, only 10-20 percent of coastal homes in North Carolina have a policy through the federal government’s National Flood Insurance Program (NFIP). Perhaps even more alarming is the fact that only one to three percent of homes in inland counties have flood insurance. Across the entire state about three percent of homes in the entire state of North Carolina have any kind of flood insurance. South Carolina is not much better off at eight percent.

There are a lot of factors contributing to this problem, but a major one is the fact that many people don’t realize that their homeowners insurance policy does not cover flood damage. Flood insurance has to be purchased separately.

If you are one of those affected by Florence, and don’t have a flood insurance policy, there is still hope. Victims can apply for federal disaster assistance that comes in the form of grants from the Federal Emergency Management Agency (FEMA). FEMA can provide up to $33,000 in assistance, though the actual grants they give tend to be for much smaller amounts.

If you are in the market for a flood insurance policy, or want to better understand the coverage you currently have, we encourage you to reach out to TGS Insurance. The TGS Insurance staff are experts in their field, and are always willing to hop on the phone with you to find the right policy for you. Visit www.tgsinsurance.com to learn more.

Sources:
https://www.usatoday.com/story/money/2018/09/16/florence-and-flood-insurance/1327854002/

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