The summer is notorious for heavy rain, which often results in rising floodwaters. Living in a coastal area or flood zone takes things to the next level. Individuals living in flood zones can sustain tremendous losses that may or may not be covered based on the type of flood insurance they have. Unfortunately, floods can also occur in areas that haven’t been deemed a flood zone any time of the year. In these cases, those losses are even greater. In 2017, the average claim paid by the federal flood insurance program surpassed $100,000. With record numbers, the integrity of the program is now in question.
What does this mean?
As floodwaters continue to rise around the country, insurance rates have gone up. With revisions to flood zones increasingly adding new areas, the cost of premiums can rise by 25% each year. Homeowners have become inventive when it comes to finding ways around these rising costs in an effort to avoid claims. It’s also important to pay attention to what the flood insurance policies cover, because if a natural disaster or excessive flooding occurs, it may not be covered.
The alternative – private flood insurance.
The availability of private flood insurance is growing, although property owners in high-risk areas may not be able to capitalize on those benefits. With a new rule instructing regulated lending institutions to accept certain private flood insurance. These institutions also have greater discretion on the types of private flood insurance that can be accepted.
FEMA is revamping their flood risk-rating, creating insurance rates that more accurately reflect a property’s unique risk of flooding to go into effect October 2020. This will help property owners to forecast how much their insurance rates will be now and in the future. It’s best to stay on top of changes in flood zones and rising costs as a result of those changes.
A smart solution.
AmSuisse specializes in property insurance for property owners to address individual and unique exposures. With the right information, their agents can build a policy that will provide coverage to deal with natural disasters and stay within your budget. Whether it retail or commercial, we help put together a property insurance program to meet all your needs.
For more information on how AmSuisse can assist in circumventing high flood insurance costs, contact an agent for a consultation today.
Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.