Flooding is the most common worldwide disaster, impacting tens of millions of people every year. This natural disaster happens when conditions cause bodies of water to overflow and submerge typically dry land. This can be caused by rapid, heavy rainfall, quickly melting snow, and the surge that comes from storms like hurricanes and tsunamis.
The financial impact of flooding is only part of the story. As a public adjuster for more than four decades, WorldClaim has a deep understanding of the significant financial repercussions and emotional stress that homeowners face. Perhaps more than ever before, flood insurance is critical for homeowners everywhere — even for those who live in moderate- and low-risk areas.
The Rising Tide of Flooding
According to the World Bank Group, flooding currently impacts more than 1.8 billion people globally. Additionally, data from National Flood Insurance shows that 25% of flood insurance claims come from homeowners living in lower risk locations in the United States.
Groundwater can rise and enter your home no matter where you live, which is why it’s so essential to have flood insurance. It’s equally critical to understand how to navigate the claims process and know about the resources available if the worst happens.
Flooding Increasing in Frequency
Already the most common natural disaster, flooding frequency and severity is being driven harder by climate change. Worldwide, weather patterns have grown in severity, causing rising seas, increasing global temperatures, and higher frequencies of rain and extreme hydro-meteorological events, including prolonged rain and heavy snowstorms.
Although the number of global flood disasters varies from year to year, the data shows an increasing trend. In 2022, there were 176 global flooding disasters, up from 59 in 1990. The Global Flood Database shows that between 2000 and 2015, there was a 24% increase in areas at risk of flooding. The threat may double by 2030, according to predictions from Scientific American.
Economic Toll
Loss of life is always the immediate concern. However, flooding’s catastrophic consequences also generate substantial economic losses. Flooding has wreaked havoc on the global economy, incurring an estimated $1 trillion in damage since 1980, and the costs are anticipated to continue rising. For instance, global flood losses exceeded $100 billion in 2021, and the economic toll of flooding is expected to surpass $700 billion by 2030.
Uninsured Homes
According to estimates from global risk management firm Milliman, only 4% of U.S. homeowners have flood insurance. Based on a misguided belief that if their lenders or insurers don’t require it, they don’t need flood insurance, many homeowners are foregoing this essential protection. Others mistakenly assume they have coverage with their existing insurance policies. This problematic coverage gap leaves homeowners liable for the costly damage that rising waters cause.
The Financial Burden on Homeowners
Among all natural disasters, flooding accounts for approximately two-thirds of the cost. In the U.S. alone, flooding events occur once every two to three days, causing an estimated $850 billion in damage since 2020. Worse, the majority of homeowners are uninsured or under-insured, leaving them with the full weight of flooding’s financial impact.
Property Damage
Once the waters recede, the full scope of the damage becomes apparent. Flood water can spread contaminants wherever it flows. Structural damage, loss of landscaping and outdoor areas, and ruined HVAC equipment, appliances, and electronics create a costly price tag. A flood insurance claim can help offset those costs — but only if you have coverage.
It’s equally important to know your policy’s exclusion limitations to ensure you get all the benefits you’re entitled to receive under the terms of the policy.
Temporary Relocation
Replacing furniture and flooring and making repairs aren’t the only considerations. While your home is uninhabitable, you will need to make temporary arrangements for a safe place to stay. Although disaster relief agencies like the United States Federal Emergency Management Agency (FEMA) provide temporary housing, it can take months before that housing is available. In the interim, homeowners shoulder the responsibility.
Lost Income
Flooding can take a toll on local economies and create temporary unemployment as homeowners and businesses recover. Lost income adds to the overwhelming costs of flooding and other natural disasters.
Increased Insurance Costs
Across the U.S., the average cost of flood insurance is approximately $939 per year, with premiums varying depending on location and risk level. After experiencing a flood, your property will have a demonstrated risk for future claims. This can often increase premiums because underwriters understand that you have an increased likelihood of filing future claims.
The Role of Public Adjusters
Insurance companies are very knowledgeable about flooding and the financial repercussions, and insurance adjusters work on the company’s behalf. Public adjusters work solely for you. WorldClaim has been advocating for its clients since 1983. Public adjusters can help with everything from understanding the complexities of your flood insurance policy to negotiating on your behalf and finalizing your settlement.
Assessment and Documentation
In terms of the flood insurance claim assistance that public adjusters provide, helping homeowners take stock of the damage is just the beginning. We will review your flood insurance policy to identify limitations, exclusions, and coverage. Public adjusters can also provide detailed guidance on how to assess the damage and document everything to go along with your flood insurance claim. At WorldClaim, we often handle this process for our clients, ensuring that it goes smoothly, with no damage left unaccounted for on the claim.
Negotiation
What happens when your insurance company offers you a settlement that you don’t feel is fair? The negotiation process can often add an additional layer of stress and frustration on top of an already tumultuous time.
WorldClaim’s team of licensed public adjusters work tirelessly on behalf of clients to negotiate a fast, fair settlement. This takes the burden off homeowners, allowing them the time and freedom to focus on what matters most.
Expertise
Many homeowners have never had to pick up the pieces after a natural disaster. WorldClaim’s team of experts takes a “boots on the ground” approach after a disaster. We travel to the center of it all and meet with homeowners, host town halls, and provide much-needed information to help start the recovery process.
The insurance company has experts on their side. Why shouldn’t you?
Contact WorldClaim Today
We give our clients 110% every time and strive to provide relief from the turmoil you may experience after a flood. Contact us online or by calling (800) 470-4700 to learn more about how we can help you navigate the path forward.
