Asked by Ron  |  Submitted November 10, 2015

During the recent South Carolina floods, my family was flooded out of our home which is in a non-flood plain.. How will this affect our rates?

We didn't have flood insurance when the flood hit and we never have as there has not been flooding in our area in over at least 30 years. Plus, this type of flood is one every 20 generations or so, and not something anyone was prepared for.

That said, we are now going to add a Flood policy. Our question is will this atypical storm's impact balloon rates out of proportion for average flooding events and areas that otherwise are flood-free.

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  Answers  |  1

February 02, 2016

Flooding shouldn't affect home insurance rates because flood insurance is only underwritten by the federal government whereas home owners insurance is offered by private companies. That being said, flood rates have been increasing for the last 5 years due to the number of flood occurrences in our nation. You may want to look at it again. Flooding is the least predictable natural disaster which is the reason insurance companies won't touch it.

Ted Miller
TMJ Group Insurance
Madison AL

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