Between 2010 and 2021, flooding and flood-related events accounted for 26% of the billion-dollar natural disasters in the U.S. Among these were Hurricane Sandy ($80 billion), Hurricane Irma ($58 billion) and more recently the Missouri River/North Central flooding event ($12 billion). As urbanization, under-maintained infrastructure and weather events caused by climate change continue, the threat of more (and more costly) flood events increases. In fact, according to one recent study, the cost of flooding damage may rise another 25% to over $40 billion on average per year by 2050. Despite these statistics, many consumers aren't protected by flood insurance. The main reason: They believe certain things about flood-insurance that simply aren't true. The slideshow above illustrates the top five flood-insurance myths we often hear at Chubb. It's important for insurance agents and brokers to know these common misnomers so they can help clients think differently about the need for flood insurance as well as the protection it provides.

Make flood insurance a part of your client conversations.

Whether your clients live in a high-risk flood zone or inland, they may be at risk for flooding. By making flood insurance a part of your renewal and new business discussions — just like excess liability — you are helping your clients to protect their assets from potentially substantial loss. This is especially true if your clients live in a neighborhood where there is construction or development, their area is mostly pavement, their home is on a downslope, or they don't live at the highest point in the area. By recommending that your clients choose a comprehensive insurance program that includes both premium homeowners and flood policies, you can help ensure that they are protected from water damage caused by water coming from inside or outside their home. And if they have to file a claim, they'll be in a better position to get their home back to new as quickly as possible. Mary Parsons ([email protected]) is executive vice president and Sales & Distribution Leader at Chubb Personal Risk Services. See also:

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