It’s a curious question when you’re living in the Valley of the Sun, do you need flood insurance in Arizona?
The fact of the matter is that the majority of Americans aren’t forced into wondering about this hypothetical, it’s a required condition of their home loan. Yet, unlike car insurance, flood insurance isn’t required just because you own property. The real question you might be asking then, is, at what point does your premium outweigh the actual risk?
The National Flood Insurance Program (NFIP) cites $650 annual premiums as the median premium for flood insurance, a figure which will no doubt sound expensive to many homeowners who never imagine using the coverage. ‘
So can you go without insurance? If flood damage isn’t covered under your homeowner’s policy, you can elect to forego this protection altogether. It’s worth noting, however, that even a minimal amount of flooding can have disastrous results in regard to personal property.
Flooding can happen anywhere, a lesson many homeowners learned the hard way during Arizona’s 2014 storm season. Record rainfall saw parts of the highway develop into swimming pools over the span of hours – property damage to Valley homes was projected to hit several million dollars. Many of these homeowners did not have flood insurance, believing the premium simply outweighed its effectiveness.
This highly-destructive storm doesn’t serve as a horror story but as an example of how all sides should be considered concerning insurance. Valley residents like in an otherwise low-risk zone, which means they’ll need to weigh the premium against the likelihood of filing a claim before making their decision.
Have you decided that you’ll forego flood insurance? Provided it’s not a required aspect of your mortgage, it might be a good investment in your protection. Lump your added savings into a rainy day fund should you ever need water damage services from a reputable company like AZ Hydro Pro.