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Las Vegas Insurance Blog
Jul 28

Written by: Jim Valkenburg
7/28/2009 9:15 AM 

Yes, we have floods here in the desert Southwest. Because the desert floor is so dry from the heat, just a little rain can make our streets dangerous and our property vulnerable. It pays to understand the risks and protect against them.

For most of us, our home is by far our most valuable possession. But every year, more homes in the US are damaged by floods than any other natural disaster. And you don't have to live near a river or a lake or any other body of water to make the disaster real. Floods move and can spread for miles. The Las Vegas Valley is a maze of "washes" and although there has been much progress in the past 10 years, it's not solved. You need to assess your own situation and decide if you want to take the risk or avoid it.

You avoid it by purchasing flood insurance. The National Flood Insurance Program (NFIP) is administered by the Federal Emergency Management Agency (FEMA) and (here's where you need to pay attention!) it provides coverage that your homeowners insurance doesn't !

Flood insurance is far better protection than depending on Federal disaster assistance, which is available only if a disaster is federally declared. If you have flood insurance, you can be reimbursed for all of your covered losses, even if a disaster is not federally declared.  Additionally, Federal disaster assistance is often a loan that must be paid back --- with interest! With flood insurance, all you have to pay is one annual premium.

The average cost for flood insurance is approximately $400 a year for $100,000 of coverage. If you had to pay back just $50,000 on a disaster home loan it would cost about $311 a month for some 20 years! If you experience a flood and a federal disaster is not declared and you do not have flood insurance, there is no recourse to recover any ruined property.

Only you can assess your own risk. You have to look at the history of flooding in your neighborhood. Do the streets around you fill with water when it rains? Do you live at the end of a cul-de-sac where water accumulates? Have your neighbors had flood issues in the past? You simply have to be diligent and protect your property... or accept the risk and the potential loss.

If you want help with a flood policy, we're here for you just like we are for any other insurance issues you may have. Don't hesitate.  Call now and ask the questions.  We'll give you answers.

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3 comment(s) so far...

Re: Flood Insurance ... In the desert?

Obviously if a person buys a home in a designated high risk flood zone, they are required to have flood insurance if they have a mortgage. However, many people choose to buy it for a variety of reasons such as (1) they live very near a wash or (2) they are on a down-slope from the neighbor above them with very little to stop the water/mud if we have a heavy rain. El Nino and La Nina a few years ago got alot of people to think about flood insurance - I hope it doesn't take that type of disaster to think again.

By Linda on   7/28/2009 11:43 AM

Re: Flood Insurance ... In the desert?

Good comment Linda. Sometimes mortgage companies do, in fact, require flood insurance if you buy a home in a high risk flood zone. If you don't know if you live in a high risk zone, you can call our office and get a Flood Determination... we'll be glad to find out for you. Just one more service we provide.

By Jim Valkenburg on   7/28/2009 11:43 AM

Re: Flood Insurance ... In the desert?

This is great advice and anyone who has lived in Las Vegas during our rainy season has experienced some sort of flash flood warning. I know its hard to believe flooding in the desert... but it does happen and when it does it is fast and unexpected. It would be wise to read your Home Owners policy and understand that flood insurance is not included. If you are confused about Flood coverage please contact your agent.

By Lisa on   7/28/2009 3:27 PM

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