Flood Insurance: Valuable Protection for a Small Annual Cost

  • June 20, 2014
  • Blog

Author: Robert L. Mertig, Claims Consultant

The devastation and destruction seen in New Jersey and New York following Hurricane Sandy in October 2012 and the overwhelming tragedy of Hurricane Katrina in New Orleans helps highlight the need for flood insurance. These storms destroyed or damaged thousands of homes and business, leaving owners and residents to pick up the pieces and rebuild. Unfortunately, many of these affected residents did not have adequate flood insurance to cover their unimaginable losses and thus were left with nothing.

The state of Virginia established a flood plain in the aftermath of the 1933 hurricane, dubbed “the Storm of the Century,” that came up the Chesapeake Bay and caused massive flooding in the tidewater and surrounding areas.  Any homes now being constructed in this location must be elevated above the high water mark established by that storm.  Financial institutions issuing mortgages in this area require purchasers to obtain flood insurance before a loan is written.

Importantly, homeowners outside of the tidewater area are not required to carry flood insurance. If these homes or the property inside them are damaged by heavy rain that causes basements to flood, a standard homeowner’s insurance policy does not cover the loss.

Currently flood insurance is subsidized by the federal government therefore the cost is very reasonable.

Dealing with the aftermath of a flood is difficult enough. Without flood insurance, homeowners may not have the money to replace or rebuild what they have lost in the aftermath of a storm. Purchasing flood insurance may keep you above water in the aftermath of a storm. 

About the Author: Robert Mertig is a claims consultant with Allen & Allen, working under the supervision of Petersburg personal injury lawyer Paul D. Hux. Bob assists clients in resolving their personal injury claims.