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.
Make your travels more rewarding with the AAA Dollars® Plus Mastercard®. Exclusively for AAA Members, it’s the credit card ideally suited for travelers – and the fastest way to earn AAA Dollars.1
We may change APRs, fees, and other Account terms in the future based on your experience with ACG Card Services and its affiliates as provided under the Cardmember Agreement and applicable law.
1Cash back can be redeemed in the form of a statement credit or ACH deposit. AAA Dollars are not earned on business related transactions or activities. You may not redeem AAA Dollars, and you will immediately lose all of your AAA Dollars, if your account is closed to future transactions (including, but not limited to, due to Program misuse, failure to pay, bankruptcy, or death). AAA Dollars awarded but not redeemed will expire at 11:00 p.m. Central Time on the last day of the calendar quarter that is five (5) years from the date on which they are earned. Account must be open and in good standing to earn and redeem rewards and benefits. Upon approval, please refer to your Cardmember Agreement for additional information. Rewards are earned on eligible net purchases. Net purchases are purchases minus credits and returns. Not all transactions are eligible to earn rewards, such as Advances, Balance Transfers, and Convenience Checks and other advance transactions as defined in the Cardmember Agreement, as well as interest charges and fees do not qualify. U.S. Bank cannot control how merchants classify their business or transactions and reserves the right to determine which purchases will qualify in which category. AAA Dollars Plus: Earn 3% per dollar for qualifying net purchases made with the card through any participating AAA Club when AAA is the merchant of record, on qualifying net insurance purchases (MCC - 6300) and at eligible retail travel merchants. Effective January 1, 2022, you'll earn 3% per dollar on the first $8,000 you spend on qualifying net travel, insurance, and AAA purchases annually. After that, you'll earn 1% per dollar. AAA Clubs located in Northern California, Nevada and Utah are not participating AAA Clubs and purchases made at those clubs will not qualify for 3%.
The creditor and issuer of this card is U.S. Bank NA dba ACG Card Services, pursuant to a license from Mastercard International Incorporated. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
ACG Card Services is an Equal Credit Opportunity Lender.
Looking for a card that requires no credit check, doubles as a great budgeting tool, is safer than carrying cash and can help keep you from running up your credit card balance? Look no further with the AAA MemberPay Visa® Prepaid Card!
Accepted at merchants and ATMs where Visa debit cards are accepted. You will feel comfortable knowing the card is not linked to any of your accounts and can be replaced in as little as 24 hours. Cards issued by MetaBank®, Member FDIC, pursuant to a license from Visa U.S.A. Inc. Terms and conditions apply.