FLOOD INSURANCE
The Unseen Value
Of Flood Insurance
H
urricane Michael recently
cut a swathe of destruction
along the southeast recently.
A Category 4, (130 to 156
MPH wind speeds), Hurricane
Michael brought its full weight to bear on
the panhandle of Florida.
Hundreds of homes and businesses had
property damage, many people were
injured, and some lost their lives. From
where did most of the damage come? The
wind? In many cases, the damage actually
came from flooding. In fact, almost all
of the lives lost in the storm were flood
related as well.
Regardless of where you may be in
relation to the southeast, storms and
the destruction they can bring are tough
to escape. Even worse, none of us can
escape the risk of flooding. It seems like
recent years have brought more and
more flooding, be it from a large storm or
from an overwhelming amount of snow
melt. The causes behind that increase in
flooding are up for debate. It is, however,
our job to cope with the increase in
risk that is coming right along with it.
Flooding is our main concern due to the
number of torrential rainstorms, which
have increased significantly over the years.
Most insurance policies are going to
exclude flooding unless otherwise
specified or specifically designed to deal
with flood damage. Most flood exclusions
include the following definition for
flooding:
“Whether natural or man-made … Flood,
surface water, waves (including tidal
waves and tsunamis), tides, tidal water,
overflow of any body of water, or spray
from any of these, all whether driven
by wind, (including storm surge), or
not.” This exclusion leaves very little doubt
as to whether or not you will be covered
if a flood hits and you are relying on a
standard homeowner’s policy for coverage.
Unfortunately most individuals and
businesses neglect to purchase Flood
insurance unless required by their lender.
This is shortsighted. We have all seen
BY: KEVIN SWEET
STERLING INSURANCE
GROUP
photos of towns underwater with boats
replacing cars for transportation. It does
not have to be a hurricane to overwhelm
a drainage system and, even worse, it
is happening everywhere, often with
heavy deluges overwhelming the existing
infrastructure.
Flood insurance costs can dramatically
vary depending on your location, what
is being covered, and the general flood
history of the area you are in. With that
being said, it is always better to be safe
than sorry, so why not reach out an
insurance professional to help guide
you through the process and answer any
questions you may have?
For more information, contact me at
586-843-2770 or ksweet@sterlingagency.
com.
Kevin R. Sweet graduated from the University of Florida earning a BSBA with honors, majoring in
Insurance & Risk Management. He continued his education by achieving the Chartered Property
& Casualty Underwriter and Associate in Risk Management designations, and became a Licensed
Insurance Counselor within five years of graduation. He is currently pursuing the Risk Fellow
designation. Kevin is an experienced and skilled Property & Casualty insurance professional, (often
described as an “Insurance Coverage Geek”), who effectively manages global risks for Commercial
Real Estate, Manufacturing and Non-profit clientele. Reach Kevin at [email protected]
or (586) 843-2770.
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