Hurricane season starts in June and, since flood insurance typically comes with a 30-day waiting period to become effective, Federal Emergency Management Agency (FEMA) officials urges builders and Realtors to alert clients to prepare their homes and businesses for the heightened flood risks associated with hurricanes and tropical storms.
Hurricanes caused eight of the top 10 most expensive declared disasters, but many U.S. residents still lack insurance protection against flood damage, causing them to absorb financial losses or seek limited funding from other sources to rebuild or repair after a storm.
More than 85 insurance companies in nearly 21,000 participating communities nationwide offer flood insurance. Most everyone – renters, business owners, and homeowners – can purchase flood insurance.
The average flood insurance policy costs around $600 a year; in moderate- to low-risk areas, homeowners can purchase Preferred Risk Policies (PRPs) starting at $129 a year.