Facts about flood insurance

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Flooding is the most common natural disaster in the United States. Because Florida has naturally low lying terrains, flooding can be very severe. Floods are the most costly natural disaster with millions paid out in claims each year. The Tampa area has $55 billion in exposure to flood claims in the event of a city wide flood. Flood insurance can help negate those costs. 

Flood insurance can be the difference between closing your doors for good or continuing to prosper as a business. Only a few inches of water can cause hundreds of thousands of dollars in damage, not just in property damage but also in interruption of business.

FEMA and the NFIP have flood maps to indicate areas where there is a higher likelihood of flooding, but this is not a foolproof system. Flooding can happen anywhere, at anytime. In fact, 25% of floods happen outside of designated high risk flood zones. 

FACT: 25% of flood claims occur outside of high risk zones. Moreover, with the implementation of the Biggert-Waters Reform Act, flood zones are continuously remapped each year. This means that a property previously designated as a "low risk" area could become a "high risk" area when remapped. 

FACT: Floods cause extensive amounts of damage both monetarily and physically. FEMA reports that from 2006-2010 the average commercial flood claim cost roughly $85,000. Many of these businesses are closed for days, weeks or months on end because of the extent of damages. 

FACT: This is not always true. In fact, less than half of all flooding events are declared federal disaster areas. Without that designation, there isn't really an option for federal assistance from flood damage. It's also worth noting if you receive federal assistance from a flood, you're required to purchase and keep flood insurance to be eligible for future assistance.