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Home Sense

Research Shows Many Homeowners Lack Flood Insurance

Only slightly more than half of the 10 million properties in the U.S. at higher risk of flooding are insured through the National Flood Insurance Program (NFIP). And less than seven percent of all homes are insured against the risk of a flood. Both of those facts are cause for concern when you consider that:

  • The National Academy of Sciences reports that flood damage is expected to double every decade for the rest of the century on account of climate change and increased coastal urbanization.
  • There is a 26 percent chance that at-risk properties will experience a flood loss during their 30-year mortgage.
  • While there is a one percent chance of a home experiencing a fire in a 30-year period, only five percent of Americans forgo homeowners insurance.
  • People who live outside of high-risk areas file more than 20 percent of NFIP claims and receive one-third of disaster assistance for flooding. (This is especially true for homes in new housing developments since developers often divert natural runoff paths and knock down trees to accommodate new homes.)
  • Winter storms and melting snow are common and overlooked causes of floods that can happen to homeowners who don’t live in high-risk flood areas.

One in five people falsely believe that flood coverage is provided under their homeowners policy. Yet due to the often widespread catastrophic nature of flooding, homeowners policies do not automatically include flood coverage. Coverage is usually provided by the NFIP, a program created in 1968 by the U.S. federal government.

Most (but not all) communities are eligible for flood insurance. An insurance professional like an Erie Insurance agent can tell you if it’s available in your area. If it is, you can purchase flood coverage through ERIE’s partnership with American Bankers Insurance Company, a top-ranked federally funded flood carrier. If you’re interested in flood insurance, it’s better to act sooner rather than later since there’s a 30-day waiting period before the policy goes into effect.

In addition to contacting your Erie Insurance agent, you can also learn more about flood prevention and the NFIP by visiting FloodSmart.gov or floodtools.com or by calling 1-800-CALL-FLOOD (1-800-225-5356).


Your home doesn't need to be located in a flood zone to be at risk for water damage. Learn why--and how flood insurance can offer needed protection. /blog/homeowners-lack-flood-insurance Erie Insurance https://www.erieinsurance.com/-/media/images/erieinsurance/erieinsurancelogo.png

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.


The insurance products and rates, if applicable, described in this blog are in effect as of March 2016 and may be changed at any time. 


Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 


The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia, New York and Wisconsin.  ERIE long term care products are not available in the District of Columbia and New York. 


Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.


Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.