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Cowart Insurance Agency Blog

All You Ever Wanted to Know About Insurance

Three Myths about Flooding and Flood Insurance

If you have chosen not to purchase flood insurance to protect your home, business, farm, or outbuilding, did you know that floods are the leading cause of natural disaster-related property damage?

Let’s make sure your choice to go uninsured isn’t based on one of the common myths about flooding and flood insurance. 

Myth One: My home, business, or farm policy already provides coverage against flood damage. 

Reality: Very few property policies cover flood damage, at least not without a special endorsement. Ask us whether your policy covers flood damage. 

Myth Two: I don’t own waterfront property, so my property will never flood. 

Reality: Floods do not only impact buildings near a river, lake, or along the coast. As the saying goes, where it rains, it floods, and it rains everywhere. Extreme “once in a lifetime” rainstorms are occurring more frequently in many parts of the country. If you happen to be impacted by one of those extreme rainstorms, you have a good chance of suffering flood damage. 


Myth Three: If I do suffer flood damage, I’ll receive federal disaster assistance from FEMA to pay for repairs. 

Reality: Most flooding events do not qualify for federal assistance. Only large events have a chance of qualifying, and even if your property is damaged by an event that qualifies, the majority of any assistance you receive will come in the form of an interest-bearing loan. FEMA’s assistance covers only immediate needs for shelter, food, and clothing. To receive money for your required repairs, you’ll need to qualify for an interest-bearing loan from the Small Business Administration. These loans are available to repair primary residences only. Damaged secondary homes, businesses, or farm buildings are not eligible.

Are you surprised by any of these? Contact our agency to find out how to protect your property from flood damage.