With less than 5 inches of rain annually, Las Vegas is certainly among the drier parts of this country. Despite our lack of abundant water, we do experience occasional dramatic flooding. Anyone living in Southern Nevada in 2003 remembers well the intense August storm that caused severe flooding in many parts of town. There are some misconceptions about flooding and flood insurance, so let’s clear those up right now.
Flood Insurance Myths & Facts
Myth: My Nevada homeowners insurance covers water damage, including flood.
Fact: Water damage and flood are not the same. Flooding is defined as “rising surface water” and is specifically excluded from ALL homeowner insurance policies, and most commercial property insurance policies. Coverage for flood losses is generally only available from the National Flood Insurance Program, a program administered by FEMA.
Myth: Flood insurance is only available to those in high-risk flood zones.
Fact: Where you live makes no difference. Flood insurance is available to anyone that lives in an NFIP participating community. In fact, around 25% of all flood insurance claims come from policyholders that live outside of the recognized high-risk flood zones.
Myth: Flood insurance is not affordable.
Fact: With policies that start as low as $100 per year, flood insurance is surprisingly affordable. For homes in the preferred risk zones, a package covering the structure and contents would cost around $250 per year on average. The average premium for all flood policies, including high-risk zones, is about $400 per year.
Myth: Federal disaster aid will pay for flood damage.
Fact: To be eligible for disaster assistance, the community must be declared a Federal disaster area. This declaration is made in only about 50% of all flooding incidents. Further, most disaster aid is given in the form of a federal loan, not a free hand-out.
Safeguard Insurance is a flood insurance specialist. We issue dozens of NFIP policies every year and can answer all your questions about cost, coverage and how the NFIP works. For more information about flood insurance in Nevada, contact us or request a flood insurance quote..
For more information about FEMA and the National Flood Insurance Program visit www.fema.gov.