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.
Travel insurance can be relatively inexpensive, especially when you consider how much you could lose if something goes wrong before or during your trip. Accidents, medical emergencies, illness — even lost baggage — all can quickly add up and turn the vacation of your dreams into a nightmare.
Travel insurance could potentially save you thousands of dollars. Your AAA Travel Consultant can help you select an affordable travel protection plan* that will protect your travel investment. AAA Travel Agency’s travel insurance partner, Allianz Global Assistance, has been protecting vacation investments for over 20 years with an award-winning reputation for service.
Purchase your travel insurance through AAA Travel Agency when you make your deposit for a trip. This is usually the best time because the plans may contain an exclusion that can be waived for existing medical conditions when purchased within 14 days from paying your trip deposit, as long as the other requirements are met as well.
While many cruise lines and tour operators offer their own travel insurance, they may carry less coverage, benefits may stop between 24 and 72 hours before departure and, should the supplier go out of business or into bankruptcy, your policy may be worthless. Through Allianz Global Assistance, plans are available that allow you to cancel anytime up to the last minute. Subject to certain terms, conditions and exclusions.
Before your travel insurance purchase, request a copy of the insuring agreement to understand what the plan covers and does not cover (terms, limitations and exclusions apply), and examine your other existing insurance policies. AAA Travel Agency suggests you review auto insurance, umbrella policy, medical insurance and other policies you may have.
Contact your AAA Travel Consultant for assistance in selecting the travel insurance plan that’s right for you. Please note that terms, conditions and exclusions apply to the insurance protection benefits and services mentioned. A complete description, including a detailed list of exclusions, conditions and limitations, will be provided to you by your AAA Travel Consultant upon purchase.
*Insurance coverage is underwritten by BCS Insurance Company, rated A- (Excellent) by A.M. Best Co., under BCS Form No. 52.201 or 52.401, or Jefferson Insurance Company, rated A (Excellent) by A.M. Best Co., under Jefferson Form No. 101-C-XX-01 or 101-P-XX-01, depending on the insured’s state. Allianz Global Assistance is a brand of AGA Service Company. AGA Service Company is the licensed producer and administrator of this plan and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage because of the affiliation between AGA Service Company and Jefferson Insurance Company.