Residents in the Midwest are facing devastating floods, with many realizing the importance of having flood insurance only after the damage has been done. The recent storms have led to record-setting floods, destroying hundreds of properties in states like Nebraska, South Dakota, Iowa, and Minnesota.
The lack of flood insurance can burden homeowners with out-of-pocket repair costs and place more need on nonprofits and government assistance. The issue is exacerbated by the fact that many people believe that flooding won’t happen to them and are unwilling to pay for another insurance policy.
Despite the increasing flood risk due to climate change, many residents are still hesitant to purchase flood insurance, even as premiums increase. The average annual price of federal flood insurance is $935, but many still choose to assume the risk themselves.
For uninsured residents, the federal government’s disaster declaration allows for grants and low-interest loans to help with temporary housing and repairs, but flood insurance provides much more financial relief. The National Flood Insurance Program covers up to $250,000 for a building and up to $100,000 for contents.
As rebuilding efforts begin, experts emphasize the importance of considering flood mitigation measures to protect against future disasters. The struggle to sell more flood insurance policies nationwide highlights the need for policy changes to make insurance more accessible to all residents, especially those with lower incomes.
Source
Photo credit apnews.com
