Calif. Businesses, Residents Urged to Consider Flood Insurance

While California may have survived this past winter’s storms, experts are urging businesses and residents to consider flood insurance.

The state’s winters storms left behind a massive snow pack 165 percent greater than normal, and reservoirs across the state are near-full, according to the Insurance Information Network of California. Experts have expressed concerns that levees under pressure from increased runoff could leak or rupture, leaving unprepared homeowners, renters and business owners scrambling to protect their property. Without flood insurance, they also may not secure the funding to rebuild.

“Flood control systems aren’t a guarantee against damage,” said Candysse Miller, IINC executive director. “Just a few inches of water can be disastrous, and flood damage typically is not covered under standard home and business insurance policies.”

Agents should consider discussing flood insurance with their clients, experts say. According to the National Flood Insurance Program, the average flood insurance claim costs about $33,000. Typically, insurance policies cost about $570 annually but can be as low as $129 in low-risk areas. Renters can also purchase flood insurance starting at about $49 per year for up to $100,000 in contents coverage only.

In California slightly more than 270,000 properties are insured against flooding. The state is home to 14,000 miles of levees.

IINC is a non-profit and non-lobbying trade association dedicated to helping the public understand insurance and manage risk.

Topics California Flood