Ohio is facing an increased risk of flooding as we move deeper into the spring season. This means properties in the state's central areas like Columbus, Ohio.
The whole country is moving out of the winter season which means a lot of melting snow for most areas in the United States. This is where your sump pump can be very helpful in reducing damage to your home...
But what if this gets flooded and needs to be replaced?
In this article, we want to talk about how using flood insurance to replace a sump pump could cost you way more than a sump pump alone, how flood impacts a property, and how this impacts future premiums as well.
What Sump Pumps Are
First, we want to cover what sump pumps are for us to be able to get everyone up to speed on the things we'll cover in this article.
A sump is a low space that collects any type of water that comes from the soil. It's like when you're making coffee where the sump itself is the jar or mug and the soil around it acts like the coffee filter that allows the water to go through.
This water generally is the excess water that goes into the ground during the heavy rain — sometimes it could be due to snowmelt — so instead of it oversaturating your basement causing flooding, the sump collects all of this.
Now, what happens when there's too much water in that hole? That's where the sump pump comes in. The sump pump is a device that's connected to a lot of pipes that send all that collected water into the main water drainage in your area.
So what if there was a flood and your sump pump got damaged?
Why You Should NOT File a Flood Claim
The basic response to flood damage or flood loss is to file a flood insurance claim from your flood policy, right? It's the only thing you can do to really manage the costs of whatever repairs you'd need.
However, it's a very different story when it comes to sump pumps.
— But Chris, filing a flood claim will get me coverage for the repairs and reinstallation of a new sump pump which can protect me long-term!
That is true, but only to an extent that your property is only protected from damage, but your wallet, not so much. Think of it this way, the current costs of installing a new sump pump range from $1,000 to $2,500. This includes the device itself and the labor that goes into it.
Generally, when it comes to flood insurance, deductibles start at $1,000. So when you file a flood claim, already, you might not be breaking even with what you're getting from your flood insurance.
Once you file that flood claim for a small repair or loss and you're doing a private flood insurance policy, the insurance company might non-renew your policy over this claim. That's already bad as it is and the same goes for federal flood insurance.
Risk Rating 2.0 & Flood Claims
The National Flood Insurance Program (NFIP) has moved into what's called Risk Rating 2.0. Flood claims directly impact your premium rates here. This means that homeowners will be assessed on the overall flood risk that their property presents and, yes, this includes looking into your flood claims history.
You see, the claims variable is now a big thing with Risk Rating 2.0 since this is like a scoring system that depends on how many flood insurance claims you've made. Since these claims don't really expire and stay for the life of the property, filing a flood claim to get your sump pump fixed can hurt you more long-term.
The Risk Rating 2.0 mostly caused an increase in premium rates across all states. Even if you're just paying for a $500 premium, after you file that sump pump flood claim, you will see an increase twice, if not thrice that amount.
It may sound great to have your flood insurance cover the costs to repair your sump pump, but as a homeowner, you should look at the financial impacts this may cause you. Filing a claim for a sump pump alone can also hurt your chances of selling the home due to expensive flood insurance costs.
This is why we only recommend filing a claimif the flood damage to your property is more than $10,000. In the end, you may be able to save a few hundred bucks with this flood claim, but each year, you will be paying more for your flood insurance premium.
If you got questions on how to save flood insurance costs, when to file a flood claim, or anything related to floods and insurance, click below to go to our Flood Learning Center:
You can also click below to call us:
Remember, we have an educational background in flood mitigation which lets us help you understand your flood risks, flood insurance, real estate selling and buying, and mitigating your property's value long-term.
When buying or selling a property, a lot of things come into play outside of money alone. One of the biggest things that you need to make sure of is to closely check the property you're looking at in the real estate market.
As the snow starts to melt, welcoming the blooming season of Spring, damages to homes are also getting welcomed by this change of seasons.
This is why it's important to be smart when it comes to buying a property, especially in the state of Alaska.
Alaska is no longer following the rule of "caveat emptor" better known as "buyer beware". What does this mean for Alaska and how can this help your property and flood insurance purchase? Let's find that out in today's blog.
The Last Frontier State
Alaska is one of the states that are really known for cold weather and beautiful mountains. You can't really blame it being that it's located in the far northern areas of the country.
However, despite it almost being a "winter wonderland" for some, this type of colder climate in Alaska also presents some concerns when it comes to the structural integrity of properties. You have to be cautious of ice melting and creating water damage to your home, spring runoff, and hail damage.
When buying a property, you want to be sure that you're getting the most of what you're paying for. For most of us, that's a lifetime mortgage we're talking about and you don't want to get frostbite with all the property damage that you didn't see.
This is why it's a good thing for buyers in Alaska to know that you can make a good decision when buying a property since it's not a buyer beware state anymore. This simply means that since the caveat emptor rule no longer applies, sellers and real estate agents will have to meet disclosure requirements before selling a house.
It's important to note however that in Alaska, disclosure statements can be waived under the condition that both seller and buyer agreed to do so.
Alaska's disclosure law, as aforementioned, states that sellers are required to disclose or share any and all details about the history of the property that's in the market. We're talking about a disclosure form here that needs to be completed.
For sellers — failing to do this will be met with legal liabilities which can really hurt your chances of selling a home to anyone. This property disclosure expects sellers to be honest to a prospective buyer when it comes to multiple things about the property.
From the materials used in the construction, exposure or history of hazardous materials, toxic materials like the lead-based paint of the house to its relative environmental risks, these are some of the things that you need to disclose.
Some of the flood-related things that this mandatory form will ask you are as follows:
- Are you aware if the property has flooded?
- What is the flood zone of the property?
- Are you aware of environmental damages to the property due to floods, earthquakes, high winds, and other natural causes?
As you can see here, this is just a glimpse of what you will be required to share. This can be very helpful to see whether or not your buyer is really motivated to buy the property even after knowing its unlikable traits of it.
For buyers — this can really help you understand the risks that you might be facing. If there is an issue with the property, you will be able to see through the disclosure form. This helps you understand how to be safe in that property and also look at the actions you would need to fight these risks.
It's important to note that this process is also helpful when buying flood insurance especially now that we're gearing towards implementing 100% of the Risk Rating 2.0.
The National Flood Insurance Program (NFIP) updated its flood insurance rating system in which the main focus of your premium rates is concerned with the flood risks you are facing. This includes flood history, flood data, and the type of floods that your property experiences.
Asking the Right Questions
Although you're going to get everything you need to know about the property you're buying, it's still important to ask the right questions.
Alaska will be requiring sellers to disclose everything they know about the property they're selling. This could be through the fact that they need that information for the mandatory disclosure form, but also for the length of their stay on the property.
However, as a buyer, you should still do your part or what's called due diligence. This is why it's best to speak with a real estate attorney for legal advice on buying a new home — not just in Alaska.
This way, you get the most out of your purchase agreement. One of the important things that you might not see in that disclosure form is the flood claim history on the property.
Flood claims have shifted to become one of the biggest factors when it comes to the rating system, especially with the NFIP. The catch is only the property owner can only have a copy of these documents, so you want to make sure that you will be able to get an insight into the claims history for the property.
As a seller, making sure to answer all the buyer's questions with your own set of legal advice as well can protect you from unwanted legal liability.
It's important to note that in states like Alaska where the caveat emptor is no longer applicable, not honestly answering the buyer's question or omitting information from them during the purchase process may be considered an act of fraud.
Buying a Property in Alaska
One of the best decisions you could make during this process is doing your part so that you avoid any issues with the purchase.
This applies to both buyers, making the most of your diligence period and maximizing the opportunity to ask the right questions, and sellers to protect themselves and simply ensure a smooth real estate sale. When it comes to the legal side, we can only discuss much...
However, if you have questions about understanding your flood risk, how to reduce it, or different flood insurance options in Alaska then we can help you.
You can check out our learning center here
You can also give us a call
Remember, we've got an educational background in flood mitigation and we want to use it to help you understand flood risks and flood insurance, so you won't have to worry about them.
Sports teams are representatives of each of our cities. Be it your hometown on the east coast or the city that welcomed you, one way or the other you will find yourself supporting these teams behind the TV screen or at the stadium.
Arizona had been having some trouble finding its footing and creating a consistent game plan. Coaches seem to have some challenges in finding consistency, so this made me wonder...
What if Arizona sports teams were as consistent as the floods they get?
From the Court to the Field
Arizona's sports teams are becoming more unpredictable as of late. To give you an idea, its NBA's team Phoenix Suns, led by Head Coach Monty Williams, was able to secure the No. 1 seed for the Western Conference. We're talking about a 60-14 overall score in the Playoffs.
Fun fact though and this gives a little peek at where we are getting at here. The Suns rejected one of the best players in the NBA in today's generation: Kawhi Leonard because he was too sweaty. What happened was that when Leonard was 19 years old, he was too nervous that he started sweating through his clothes during an interview with the Suns' management team.
You'll see where we're getting at here...
If you look into the NCAA or college basketball, there's a different story with the Arizona Wildcats. Despite being the number 1, they were completely overwhelmed by Texas' own Houston Cougars by keeping their lead throughout the whole game.
The Wildcats lost to the Cougars in a 72 -60 game. This is literally the number 1 seed that got beat by a team that wasn't even in the top three seed.
Photo: sports.yahoo.com (Maddie Meyer/Getty Images)
On the topic of football and the NFL, Arizona also is showing great things as they are reportedly improving on their offensive strategies.
After suffering their 11th loss in the 2021 season and averaging only 17.2 points per game — which is to say that they rank 124th out of 130 teams — the Wildcats football team seems to have plans on bouncing back hard.
However, we also need to really consider if the basketball teams might choke, the football team of Arizona is not out of that realm yet. This is especially after the Arizona Cardinal's recent collapse in overall performance with the Cardinals Team.
So, what if these Arizona sports teams' players and coaches take a page from the state's flooding when it comes to consistency?
Arizona Floods Consistency
Now, you might be wondering why we're saying that the sports teams of Arizona should take a page from flooding — that's like two separate things.
Well, you see, when it comes to flooding Arizona has been consistent on what they are getting. For example, in August of 2021, residents of Gila Bend, a town in Maricopa County just in the southwest of Phoenix, experienced one of the worst flash flood events in recent history. This happened after a recorded 1.46 inches of rain were dumped in 24 hours.
If we go further back, in 2005 there were two major flood events that impacted the state. The first one happened towards the latter part of February due to rain and snow raising the Gila River at Duncan. This eventually broke the town's dike which caused a flood event that victimized residents.
The second major flood event happened in August as well. This was more due to heavy rainfall of up to 3 inches over about a 2-hour period. This eventually led to channel breakouts just north of the Highway 86 bridge near Three Points.
At the time of writing, Arizona senators have secured $12.8 million to prepare for post-fire floods from the United States Department of Agriculture (USDA). This is due to the fact that the state has already experienced around 90 wildfires already.
This is a good move on Arizona's part as we've seen in 2004 how 1 -2 inches of rain caused massive flooding and caused a lot of runoff in burn areas in Safford Valley.
So just like the sports team, you too should have a game plan to avoid any unwanted losses for your property. Especially as we move into the summer season where post-fire flooding and flash floods can be more common.
Flood Insurance for Phoenix
The only time you can be sure of your that you will find consistency in your preparation and handling of certain flood events in Arizona and Phoenix will be through flood insurance. It's called insurance for a reason.
Through a flood policy, you won't need to doubt whether or not you'll be covered when all that water hits you. If you're having doubts about the Wildcats or are anxious that the Cardinals might collapse again in their Bowl Game, you can be sure to not experience that with flood insurance.
Flood insurance provides coverage for any damages to your home and everything inside it for any type of flooding. This means that you get building, contents coverages, and more depending on where you're getting your flood insurance.
Just like these sports teams, flood insurance will also consider a lot of variables when it comes to rates. Since we're moving into the renewal phase of Risk Rating 2.0 in about 5 days (April 1st), you want to consider your flood insurance options.
See what's different between these options by watching the video below:
Birmingham Alabama — There seems to be no room to breathe when it comes to flood threats in Alabama as the state faces another week of intense storms starting this afternoon (Tuesday, 03/22).
Being safe from flooding storms out of the state. This might also present some impacts to flood insurance. You may have thought about it, so we'll ask the important question when it comes to this weather event that's rampaging Alabama...
Will this flash flooding in Alabama cause a Flood Map Update?
Second Round of Storms
Last week, we saw a lot of flash flooding going around as a result of heavy rains that blindsided residents in Alabama. This flood event caused a lot of roads to close and get inundated with water in Alabama.
It may seem that this is where it ends for the troublesome weather conditions for commuters and residents however it looks like it was just the beginning as severe weather is reported to move across the Southern Plains.
This second batch will be bringing the same heavy rains and strong winds starting this evening of Tuesday (March 22nd). At the time of writing, WBRC News said that rainfall amounts could be around 2 to 4 inches of rain during this period.
Source: WBRC News (www.wbrc.com)
We've seen how bad this amount could get especially when it comes to all that runoff flash flooding.
Last week, you probably saw how bad these types of severe storms can impact growing areas like Birmingham City, Jefferson County, and Shelby County in Alabama.
Without really giving the state a break, flood levels and flood threats from rivers, runoff, and snowmelt can definitely add salt to the wound.
Since flood risks are the focal point of flood insurance when it comes to rating systems in both federal and private flood insurance, this begs the question:
Will this create another flood map update for these areas in Alabama?
March 2022 Flooding:
Will It Result in Flood Map Updates?
If I were to tell you to take a shot every time a good flood insurance agent says that these won't be affecting flood insurance at all, we would both need to get someone to drive us home.
This is because we already moved out of purely basing flood insurance rates and measuring risks through flood zones alone.
This is especially true with the Risk Rating 2.0 which started for most new policyholders in October 2022. When the National Flood Insurance Program (NFIP) moved out of the regular rating structure of using flood zones as the main basis, this only meant that your flood risks will be the focal point of federal flood insurance.
This only means that such type of consistent flooding due to heavy rainfall will only get you further deeper into higher risks which in turn can create flood maps being updated to show these risks for residents of Alabama.
There are a lot of factors that are already impacting the overall chance of floods in the state. This includes the following things, especially during this climate crisis:
- Rising sea levels on the coast
- Amount of precipitation in an area
- Hurricane impacts across Alabama
- Drought causes dirt not to be able to seep water properly
The climate conditions that we are facing are the byproduct of the same climate crisis around the world.
This is why in a recent video, we did a flood intensity comparison where we found that flooding last 2-3 years is significantly more frequent if you were to compare it with the last 10 - 15 years for Alabama.
You can watch that video below and read our blog about it by clicking here:
These are but a few things that impact your risks and based on the damaging floods from inches of rainfall that Alabama is experiencing, it's expected for the floodplain management and flood maps to reflect these risks.
— What does it mean for flood insurance and why does this matter if flood zones are no longer in the equation when it comes to rating systems?
Well, you only have to look at what these flood zones represent: flood risks in an area.
With that being said, it's best to really overhaul your flood insurance policy or get one for your property if there isn't one already. This is the best protection you can get when flooding happens.
We hope that everyone stays safe during this whole rainfall event which may even happen again in the upcoming weeks for this month. This is one thing we should all be prepared for as snow starts to melt and add to flood conditions.
So if you have questions on your flood risks in Alabama, how to get flood insurance, and anything related to floods and flood insurance click below to go to our Flood Learning Center or you can also talk to us.
Remember, we have an educational background in flood mitigation which we use to help property owners like you understand your flood risks, insurance policies, and protect the value of your property long-term.
A lot of trades are going around in the National Football League (NFL) right now. One of the biggest names that are popping up is Deshaun Watson after signing a massive trade deal with the Browns.
Matt Ryan has been traded to the Indianapolis Colts for draft picks. As a lifelong Falcons fan, this hurts, but all good things must come to an end. What goes down must come up.
Before we make changes and update with regards to our flood insurance, we need to make sure that we know what changes will be implemented once we do. In this video, we will talk about how replacement cost impacts flood insurance, especially the rates of your flood insurance coverage.