RealManage Insight

Stay Prepared Even If You ARE NOT in a Flood Zone: A Proactive Approach to Protecting Your Property

by Katie Vaughan on Jun 6, 2019 8:04:00 AM

Mother Nature is often very unpredictable. Just because you don't live in a flood zone doesn't mean you are safe without flood insurance. Depending upon the terms of your homeowner's policy, your property may not be covered in the event of a flood. Even renter's need to take caution when it comes to flooding and what's covered under their renter's insurance. Community Association Flood Insurance can help to cover certain buildings and common areas, both in HOA and condominium communities. By following these tips regarding flood zones and insurance, you'll be better prepared for when the water rises.

Review Your Current Coverage

Most basic homeowner's and property insurance do not include flood coverage. Ask your association about any policy coverage that may include flood coverage. If they don't have it, suggest getting quotes in order to consider adding flood coverage to the policy. For those who live outside of a flood zone, the coverage may be more affordable than you think and well worth the investment. As shown below, the dollar amounts associated with flood damage are high and FEMA assistance alone is rarely enough to cover the costs. 

Why Flood Insurance is Important

People who add flood insurance coverage to their existing homeowners or property insurance aren't alarmists; they are realists. According to the Federal Emergency Management Agency (FEMA), floods are the nation's most common natural disaster, resulting in millions of dollars of damage every year. 

The data provided by FEMA is alarming. Consider the following estimate for potential property damage from flooding to a 2,500 sq. ft., one-level home with $50,000 worth of possessions:

1" Interior Water Depth

Cost to home: $23,635

Cost to personal property: $3,172

Combined loss potential: $26,807

4" Interior Water Depth

Cost to home: $31,345

Cost to personal property: $7,207

Combined loss potential: $38,522

FEMA provides financial assistance in the form of grants and low-interest loans. In addition, the National Flood Insurance Program (NFIP) is a program operated by FEMA that offers affordable flood insurance in an effort to reduce the impact of flooding. The NFIP is worth considering for your association due to the types of properties included in their policies. 

We've all watched the devastating damage of major floods from Hurricane Katrina in 2005 and Hurricane Harvey in 2017. The national news coverage showed the massive destruction of property that forced many to abandon their homes. While flooding that severe many never affect where you live, some level of flooding is always a possibility. 

Don't wait for the next major flooding disaster to review your policy. A proactive approach to learning what your association covers and what your responsibility is can prevent panic and stress later. 

About RealManage

RealManage understands how severe weather can greatly impact a community. Our professional team is highly experienced in providing management that guides association boards and that creates strong community engagement. 

Communication is key to our success. At RealManage, we help boards to keep residents informed and satisfied. We also help boards with budgets. A combination of communication and a healthy budget make for a thriving community.

Managing expenses, such as flood insurance and communicating information about the coverage, provide members with a better peace-of-mind.  When the weather becomes severe, your members will feel better knowing that leadership has prepared them well. Whether the association purchases flood insurance or members purchase their own, keeping everyone in-the-know is better than keeping them in the dark.

Protect your association with strong management from RealManage. We take great pride in helping boards and association members develop communities that flourish. To learn more about us and how our services can help you, contact us today. 

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