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Incoming tropical storms may impact the East Coast next week, with the potential to cause rip currents and floods.
Here’s how flood insurance could help protect your home from damage.
High Impact
We’re in the thick of hurricane season, which kicked off in June and runs through November. According to The Weather Channel, August is when storms usually ramp up due to ocean and atmospheric conditions.
Tropical storms Humberto and Imelda may hit the East Coast next week. The Weather Channel projects potential impacts from New England to Florida, as well as the Southeast U.S. and the Bahamas.
Even if the two storms don’t make landfall in the U.S., several days of onshore winds could still create turbulent conditions. These may include high surf, rip currents and some coastal flooding from Florida to New England.
The U.S. Environmental Protection Agency (EPA) reports that the East Coast is especially susceptible to flooding. Locations along the East and Gulf Coasts, as well as Hawaii, experience the highest rate of flood events per year.
Flooding has also become an increasing financial concern for Americans. A 2023 report from Climate.gov found that the five-year average disaster cost per capita increased from $150 in the early 2000s to above $400 in the late 2010s, and it has since remained at as high of a level in recent years.
Plan Ahead
According to the EPA, while there is no identifiable climate change trend showing an increase in the number of hurricanes over the years, cyclone intensity has noticeably risen over the past three decades.
What many homeowners may not realize is that standard insurance policies, whether homeowners or renters, typically do not cover hurricane or water damage.
As a rule of thumb, flood coverage is generally not included across standard policies and must be purchased separately.
If you don’t already have a homeowners insurance policy or can’t afford it, the Federal Emergency Management Agency (FEMA) offers flood coverage through its National Flood Insurance Program (NFIP). This program helps protect homes located in high-risk areas.
The NFIP offers two types of coverage: building coverage and contents coverage. These policies protect against physical damage to a home’s structure and personal belongings, respectively.
However, most NFIP policies come with a 30-day waiting period before coverage takes effect.
For those who can afford homeowners insurance, keep in mind that flood policies usually need to be purchased a la carte and may also include a waiting period. Private insurers tend to offer shorter waiting periods, typically ranging from 7 to 15 days.
When shopping for flood insurance, be sure to review your deductibles and coverage limits carefully. Compare the cost of premiums against your budget and risk level.
Always read through the fine print of your policy and stay on top of what it does and does not cover. With hurricane season in session, it may be a good idea to explore Forbes Advisor’s picks for the top homeowners insurance companies.