Performance Thinking

Expert information and solutions for your business.

Fall 2011

It’s All a Flood Zone! – Do you have an overlooked exposure?

As of late, flooding seems to be on people’s minds. Considering that flood is the number one natural disaster in the United States, it makes sense. Unfortunately, when most people think of flooding they visualize coastal properties or those locations situated near a major body of water. While it is true that these locations have a high risk of flood loss, they are not the only locations with an exposure. The fact is that every building in the United States is in a flood zone. The question is not if there is an exposure to loss, but how large the exposure to loss is.

While your amount of exposure to flooding is determined by the flood zone in which you are located, it is a fact that flooding and flash flooding can occur in all flood zones. Much of the 2009 Nashville flooding occurred in flood zones deemed “low hazard.” According to NFIP (National Flood Insurance Program) statistics, 20% of all NFIP claims and 1/3 of disaster assistance for flooding comes from areas outside the high-risk zones. At the end of the day, the biggest issue with flood is not that people have misconceptions about who is at risk. The biggest issue with flood is that most property policies (personal and commercial) do not provide coverage.

Talk to your risk advisor today!