Dennis F. Murphy, Jr. CEO CPCU, CLU
Spring is here, but only six months ago the east coast faced Super Storm Sandy. I was touched by the empathy of our staff, who instead of their usual holiday gift exchanges pooled their money and made a sizeable donation to Sandy Relief efforts. Our heartfelt sympathy goes out to the families and business owners affected by the storm.
As reported, Sandy’s winds caused serious damage; however, the most severe destruction was caused by flood water. Home, condo, renter and most business insurance policies exclude damage caused by floods. You need a separate flood insurance policy for protection. Yet, unless flood insurance is required by a lender, many people forgo this coverage because of the additional cost or not perceiving it to be a risk.
With spring comes a greater potential for flooding, which can occur in areas that are not considered high risk. You don’t have to live on the coast or near a major river to experience flooding. In fact, since the National Flood Insurance Program began, 25 to 30 percent of all paid losses were for damage in areas not officially designated at the time of loss as special flood hazard areas. Sadly, there were numerous reports of Sandy victims, who don’t have flood insurance and have no insurance coverage to help rebuild.
What’s been most frustrating to me is news reports about people who claim they were never informed about flood insurance or thought the policy they purchased provided coverage when it didn’t. It’s impossible to know what communications transpired, but we never want that situation to occur with our customers, which is why we continually strive to educate our customers and the public about coverage options through various methods such as this blog. While you make the final decisions about purchasing coverage, it’s our job to inform you about ways to enhance your protection.
If you have questions about flood insurance, be sure to contact us. Don’t wait until a threat is imminent to start thinking about buying a flood policy. There is a 30-day waiting period after purchase until the coverage becomes effective, so you need to purchase flood protection now. Call us to discuss how flood insurance coverage works and get a quote for your property.
We’re always here to provide answers and find solutions to help you manage financial risks. We have your best interests at heart.