The Cost of Flood Damage in the U.S.: How Much Does It Really Cost?

Flooding is a natural part of living in certain areas, but it can be devastating for homeowners in high-risk zones. That’s because the cost of flooding is often prohibitive. All Counties Insurance Agency & Traffic School of Palm Coast, FL is here to explain why floods are exceptionally costly.

The Basics of Flooding Costs

The amount of damage that a flood can cause is mainly dependent on where it takes place. Areas near rivers, creeks, lakes and other wetlands are at a much higher risk of flooding. Heavy rain, snow melt, and other precipitation also increase flood risk. According to FEMA, one inch of water can cause over $25,000 in damage. The National Flood Insurance Program reports the average claims for flood damage from their program and FEMA’s Individuals and Households Program (IHP) exceed $30,000.

Why Does Flooding Cost So Much?

Many factors contribute to flood costs, including repairing or replacing damaged property. Damage from flooding is expensive to repair because of the damage caused by pushing water under and through structures. When a flood occurs, water typically enters homes through broken windows, doors, and other structures’ openings. Once inside, it flows down the walls, destroying the drywall and other building materials.

How Does Flood Insurance Help?

Thanks to the National Flood Insurance Act of 1968, which established the National Flood Insurance Program (NFIP) as a federally run insurance program to provide coverage to people in areas with high flood risk, everyone is eligible to obtain flood insurance. The amount of coverage you receive depends on the level of risk in your area. If you live in a high-risk area and have a mortgage, your lender will likely require flood insurance for you.

Call To Action

If you live in a high-risk area in Palm Coast, FL, call All Counties Insurance Agency & Traffic School to learn more about flood insurance and how much coverage you should have.