Spring is right around the corner. While many areas of the country welcome the end of snow season and cold temperatures, it is important for your clients to be aware of the increased risks of flooding due to warmer weather, melting snow and heavy rains.
Rapid snowmelt and heavy rainfall from the recent bomb cyclone have led to historic and catastrophic flooding across the Plains and Midwest. According to the National Weather Service, more than 40 communities in Nebraska, Iowa, Wisconsin, Minnesota, South Dakota and Illinois are experiencing record high river levels that have devastated towns and forced thousands to evacuate their homes.
While the elevated risk of flooding in spring isn’t new, some areas of the country may be experiencing the most significant flooding on record, and according to weather experts, the trend is only likely to continue and grow more severe. Extreme weather events are increasing in frequency and intensity, and studies have found that over the past two decades, heavy precipitation events have been increasingly above average, particularly in the Midwest, Great Plains and Northeast.
Your Customers Are Likely at Risk Without the Necessary Coverage
When working with your customers, it is important to consider the following:
One out of every four of your customers will likely experience a flood event.
In areas of moderate to high risk, there is a 26 percent chance of experiencing a flood over the term of a 30-year mortgage. According to the Federal Emergency Management Agency (FEMA), more than 20 percent of flood insurance claims occur in moderate-to-low-risk zones.
Flood damage is costly, yet less than 20 percent of homeowners are protected.
Flood damage is not traditionally covered under a homeowners insurance policy, and the results can be devastating. Only one inch of water in a home can cost more than $25,000 in damage. Yet only an estimated one out of every six households in the U.S. have flood insurance. Do you know if your customers are protected?
The Right Time for Private Flood Insurance
It has never been a better time to talk to your customers about the risk of spring flooding and the private flood insurance solutions that are available to help protect their valuable property. For more than 25 years, Tokio Marine Highland has been at the forefront of private flood insurance. That’s why you can be confident in presenting your customers with our specialized products and innovative solutions to protect against devastating flood loss.
The private flood market offers a wider range of options, competitive rates and better coverages than provided under the National Flood Insurance Program. Contact us today to learn more. We can quote your potential target risks and answer any questions you and your customers may have about options.