Insurance industry urging American residents to buy flood coverage

flood insurance rates

Insurance industry flood coverage recommendationThe I.I.I. has officially released a statement to remind home and business owners of hurricane season.

With less than a month before the start of the Atlantic hurricane season, officials from an insurance industry group are reminding homeowners, business owners, and renters in at risk areas that they should be considering flood policies.

The reminder includes the fact that standard home and business policies do not include flooding.

The Insurance Information Institute (I.I.I.) has reinforced its insurance industry statement by pointing out that predictions are that the hurricane season could be a very active one. The season begins on June 1, and the reminder includes the fact that the majority of flood policies don’t go into effect until thirty days after they are purchased.

The insurance industry organization also reminds consumers that tropical storms can also cause flooding.

For this reason, it is warning home and business owners who liver further inland that this insurance industry reminder doesn’t just apply to those on the coast. The remnants of the storm can move very far inland and can cause waters to rise and basements to flood. Rainstorms in the springtime have already caused massive flooding in Michigan, Indiana, Illinois, and Missouri.

Many people don’t realize that a standard homeowners or business policy does not cover against the damage caused by flooding. However, in the insurance industry statement released by the I.I.I., the senior vice president and consumer spokesperson, Jeanne Salvatore, pointed out that “flood insurance is available from the National Flood Insurance Program (NFIP) and a few private insurers”.

The insurance industry is hoping that consumers will act sooner, rather than later. It is too late to purchase a policy when the storm is already on its way. The best time to act to ensure complete flood coverage throughout the entire hurricane season is right away. It is important to note that for communities that are not covered by the NFIP, private insurers will often offer excess flood coverage that can be purchased. This may be worth considering for many residents, this year.

The insurance industry is hoping that the country took a lesson from Superstorm Sandy – the third most costly storm in the history of the United States – and will realize the importance of flood coverage, particularly at this time of year.