Flooding Can Cost You Thousands Without Insurance

We've all seen how just a few inches of water can cause costly damage to a home. Dianne Derby tells you what it could cost you to not have flood insurance and how little you may have to dish out to be protected.

By: Dianne Derby | News Channel 7
Published: September 29, 2009

Mother Nature wreaked havoc on the Carolinas and Georgia last week. Heavy rains wiped out roads and flooded homes. If you're thinking 'It won't happen to me', think again said CWS Insurance agent Larry Joyner

"Most homes have the potential for a flood loss," said Joyner. "The average flood claim last year was about $33,000 and 25% of those claims happened in moderate to low hazard areas."

Joyner said most homeowners insurance policies don't cover flooding. He said only 12% of the homeowners in South Carolina actually have flood insurance, and most of those are on the coast.

It only takes a little water to leave you out thousands of dollars. According to the Federal Emergency Management Agency, two inches of water can cost you $7,800 and if it reaches a foot it could cost you $18,000. Federal disaster assistance won't pay for it, according to FEMA. It comes in the form of a low interest loan and that money is only available if the President declares a disaster.

So what's it going to cost you to protect your home? Joyner said it could be as low as $119 a year. Click here to find out about"Preferred Risk Policies". He recommended homeowners insure for at least 80% of the home's value.

"For example, a $150,000 house would be just under $300 a year in a low to moderate flood area," Joyner said.

If you want to research on your own head to www.floodsmart.gov. Type in your home address and it will tell you your risk level, estimated policy costs and where you can get an agent to answer your questions. Simple steps that will help you be aware of what it could cost you the next time Mother Nature choose to show her force.

For more information about flood insurance contact the National Flood Insurance Program toll-free at 1-888-379-9531.

If you already have flood insurance you could see changes to your policy starting starting October 1st. The South Carolina Insurance News Service says premiums will increase an average of 8% and homeowners will see their deductibles increase. If your deductible is $500 you'll see it double to $1000. Talk to your insurance agent or company for more information.