Think you don’t need flood insurance? Perhaps you don’t live near water, or maybe you have a great homeowners policy. The truth is, every home is at risk of flooding. Before passing on flood coverage, here are five things you should know.
1. Every home is in a flood zone.
According to the National Flood Insurance Program (NFIP), nearly 20% of all flood insurance claims are made by homeowners living in areas considered a low risk for a flood. That means regardless of whether your mortgage company required you to purchase flood insurance, your home is at risk for flooding.
2. No homeowners insurance policy covers flooding.
It’s a common misconception that homeowners insurance covers flood damage, but the truth is only flood insurance covers flood damage. Without it, the cost of the damage comes out of your pocket.
3. You can’t rely on the federal government to pay for flood damage.
Federal assistance is only available if the president declares an area a disaster. Even then, the assistance is not compensation for your losses, but rather a low-interest loan that requires repayment with interest, along with your mortgage.
4. Flood losses are costly.
Most people don’t realize that just a few inches of floodwater can do thousands of dollars worth of damage. In a 2,000 square foot home, one inch of water can cause as much as $27,000 or more in damage to your home and its contents.
5. Flood polices are affordable.
AAA can help protect your home with rates starting at less than $1 per day.* In 2017 the average amount of flood coverage was $252,261, and the average annual premium was $707.
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Rates effective April 1, 2019. These PRP rates are for 1-4 Family Residential without a basement or enclosure. Other residential building and contents coverage combinations are available. Premium includes a 15% Reserve Fund Assessment, $25 Federal Policy Fee, Increased Cost of Compliance, and $25 HFIAA surcharge for policies covering primary residences only if the named insured’s primary residence is a single-family dwelling, an individual condominium unit, or an apartment in a non-condominium building. Add $225 to the HFIAA surcharge for all other policies. Add the $50 Probation Surcharge, if applicable. Deduct the Increased Cost of Compliance if the risk is a condominium unit.
Flood insurance purchased through AAA is underwritten by a participating insurer of the National Flood Insurance Program (NFIP). The NFIP is administered and regulated by the Federal Emergency Management Agency (FEMA).
* The full annual premium must be paid prior to policy inception. In certain circumstances, flood insurance can be canceled and a refund can be issued. For additional information about cancellation, please contact your agent.
A gift membership from AAA is the easiest way to show everyone on your list just how much you care. They’ll appreciate having AAA standing by to help them on the road, and to help them save money all year.
For every new AAA Gift Membership you give, you and your recipient each earn 20 AAA Dollars.
The AAA Dollars you earn are deposited in your AAA account and applied to your next annual membership renewal dues, or can be redeemed on select AAA purchases - including future gift membership purchases, upgrading your membership, adding associate members, and more.
Why give just any gift? Show them how much you care with the gift that keeps giving throughout the year. Give AAA Memberships today.
*The AAA Gift Membership Program is available to active AAA members and new members residing in The Auto Club Group territory where the AAA Dollars® Program is offered. The purchaser of a Gift Membership earns 20 AAA Dollars® for each new AAA annual Membership purchased as a gift (Primary member only) and the gift recipient (Primary member only) also receives 20 AAA Dollars®. Earned AAA Dollars are applied toward upcoming AAA membership renewal dues balance of annual memberships only. AAA Gift Membership Program, offer and availability are subject to change without notice at any time.
**Roadside assistance is provided by independent facilities contracted by AAA. Coverage in taxis and limousines is excluded. Your membership kit will include a handbook that fully describes your member benefits, including any limitations or restrictions. Offers, terms, conditions and policies are subject to change without notice.
†ProtectMyID® is provided by ConsumerInfo.com, Inc., an Experian company. Certain terms, conditions and restrictions apply. Valid AAA Membership and valid email address required at time of enrollment. Discount subject to change at any time without notice.
Upon activation and with proper identification, AAA will provide regular AAA services and full privileges for the new member. Roadside benefits begin three days after payment of dues. Some restrictions apply.
AAA Dollars offer applies to active members from The Auto Club Group (ACG). AAA Dollars held by ACG Members may be redeemed by any active ACG Member who is registered with The Auto Club Group under a AAA membership account and resides in the primary household designated for such ACG Member account (“ACG Member Household”). For more information, the Terms and Conditions for AAA Dollars can be found at AAA.com/Dollars.