ST. PETERSBURG, Fla. — After Hurricane Debby brought flooding to homes that weren't in a flood zone, you might ask yourself: Should I get flood insurance?
It's a question that isn't easy for many when property insurance costs are already sky-high in Florida. However, an investment Bob Davie said isn't worth the risk, living in a Flood Zone A in St. Pete.
He said he pays about $6,000 a year for flood insurance alone, even though he is not required to have it because he has no mortgage.
"I thought about it, actually," he said. "I have got it on this house but not on another. But it depends on your risk assessment. It's extremely expensive, but it's going up. I thought about getting rid of it here."
However, if you are considering getting flood insurance, Trevor Burgess, CEO of Neptune Insurance, said there are options. He said most of the flood insurance policies, about 90%, are through FEMA's National Flood Insurance Program.
However, about 12 private companies offer flood insurance. Neptune Insurance is the largest flood insurance company in the United States, and it is based in the Tampa Bay Area.
"Flood insurance is an added cost," Burgess said. "But your homeowners insurance does not cover the risk of flooding, flooding is anytime water comes from below it can be from hurricane from surge, from infrastructure in the street failing and water rising."
He said recent storms prove it can flood anywhere in Florida, adding that even if a city or county's storm-water system fails, the water is not covered by your property insurance. That's a flood insurance claim.
"The three misconceptions about flood insurance are 1) that it is covered by your homeowners insurance and it's not, 2) that if you are not in a flood zone, than you don't need insurance. A quarter of all claims are outside a flood zone, and 3) it's something you can't afford. It is much less expensive than property insurance in Florida," Burgess said.
He adds going the private flood insurance route also gives you options to shop around, instead of going with the NFIP. He also said private flood insurance companies can offer more coverage. NFIP limits flood insurance coverage to $250,000 dollars, another misconception.
"Most of the time Neptune is less expensive than NFIP and we are able to do that by using super-intense Artificial Intelligence computing to see your real risk," Burgess said. "We charge different prices for you and your neighbor, whereas NFIP is probably charging a similar price for everyone on your block."
- To find out more about Neptune Insurance, click here.
- For resources on getting insurance through the NFIP, click here.
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