Flood Risks, Insurance Costs on the Rise: Essential Steps to Protect Your Property

Communities from Florida to the Northeast are recovering from the effects of Hurricane Debby, which brought flooding rain and multiple tornadoes from Florida to the Northeast. Earlier this year, forecasts predicted an above average, or even record-breaking number of storms in 2024, due in part to unusually high ocean temperatures and the effects of La Niña, NBC News reported.

For homeowners and commercial property owners across the U.S., the trends mean a heightened risk of costly flood losses. The rising costs highlight the need for Flood Insurance, which more homeowners are now required to obtain and is becoming increasingly expensive in certain areas.

“The premiums are very high, especially in Florida, when you factor in the actual exposure and the expected losses over a very short period of time,” said Brad Turner, Vice President, National Product Manager, Flood, Burns & Wilcox, Morehead City, North Carolina. “In some of these areas, especially as homeowners’ property values escalate, that coverage can be rather hard to afford.”

Even in areas considered to be at lower risk for flood, inland flooding is a rising threat, said Jacob Martin, Manager, Flood, Burns & Wilcox, Charlotte, North Carolina. Homeowners in these places may be less likely to purchase Flood Insurance, especially if it is not required by their mortgage lender.

Read the full article here.

Interested in receiving more specialty insurance intel? Sign up here to receive the latest industry news.