Unfortunately for Californians, the floods are here this year. As predicted, the rains come from our long long drought. After three years, the rain gods answered.
A common misconception in California is that only the people of the Midwest need flood protection, and that’s a bad argument. While the floods we get in California are different, they are certainly not non-existent.
Fortunately for many of the residents of the San Francisco Bay Area, flood insurance can be inexpensive if you live in a good flood zone and your community participates in the National Flood Insurance Program, also known as the NFIP. National Flood Ins is essentially guaranteed by the US national government through the Department of Homeland Security.
Unfortunately, customers who live in flood zones A and V pay a lot more in flood insurance costs. Sometimes more than 9 or even 10 times that cost. There are, of course, plenty of other assessment factors that come into play, such as the exact height of your home and the foundation you have. Customers living in these so-called high-risk flood zones are increasingly tasked with paying flood prices that would make the average consumer’s eyes water. Trust me, it’s a high number
In a recent article on CNBC, now titled California’s El Nino Floods, roofers are keeping insurers busy. The article gives the impression that insurance can be taken out for as little as $400 or $500. And while that may be true for some, it isn’t true for those living in higher-risk flood insurance. The $400 price tag is usually most associated with what are known as preferential pricing, which many customers can and do qualify for.
What should a customer living in a high-risk flood zone in California do? Shopping with flood insurance probably won’t help them as much as with regular homeowners insurance (home insurance). However, there are certain times when a private flood control provider can make sense. Many agents are not aware of these options.
What is special is that floods are almost NEVER covered by your regular home insurance. Another special note is that a new flood insurance policy usually requires a waiting period of thirty days before it takes effect.
So, is it too late to buy flood insurance, Californians? Personally, I don’t think so, but it’s close. Time is running out.