Forbes - An unexpected start to hurricane season

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A Note From Natalie:

A tropical storm in a desert? That’s what most people were trying to wrap their heads around as Hilary caused massive flooding throughout Southern California last week. 

Low desert communities like Palm Springs—where average rainfall is barely four inches per year—got hit the hardest. Historic rainfall triggered flooding, mudslides and sinkholes as some 36,000 people were without power and dozens had to be rescued from rising water. According to meteorologist Richard Thompson, the last time a tropical storm made landfall in Southern California was in 1939. 

Because of climate change, increasingly ferocious storms—with some striking unlikely places—are going to become more frequent in the coming months and years. And it’s also bringing floods to places that don’t normally deal with flooding.

Scientists at the National Oceanic and Atmospheric Administration expect an above-normal Atlantic hurricane season this year due to record-warm sea temperatures. There could be as many as 11 hurricanes this season, with five potentially becoming major hurricanes with winds clocking speeds of 111 mph or more.

This week, we’re discussing steps you can take to protect yourself from severe weather, especially if you’re realizing for the first time that your home may be vulnerable—and what type of insurance can best safeguard your home.

Very best, 
Natalie

Natalie Campisi

Senior Staff Writer

Consumer Finance

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

Does Everybody Need Flood Insurance Now?

When a 100-year-old lake bed filled with water in California’s Central Valley last winter after unprecedented storms the media branded it a “ghost lake.” After a century of absence, it was back—and now it’s almost the size of Lake Tahoe. Homes and farms were washed away in the flooding, and few in the community had flood insurance because as one local said, “You can’t prepare for what you can’t imagine.”

Scientists predict that heavy storms like this one will become more commonplace. Making matters worse, the infrastructure to handle these storms is insufficient.

Mark Ogden, a civil engineer and project manager for the Association of State Dam Safety Officials, notes that “many dams and levees are not up to dam safety standards.”

“The system of dams and levees have been stressed in ways that they haven’t been in the past,” he says. “With increased precipitation, we’re going to see these events more.” This means households are at the mercy of their local governments and private companies that preserve and update these systems. This is where insurance and maintaining your home comes into play.

Of the 259 million adults living in the U.S., there are only 5 million flood insurance policyholders nationwide through the National Flood Insurance Program (NFIP). If you’re not in a designated flood zone, your mortgage company won’t require you to get flood insurance, but that doesn’t necessarily mean you shouldn’t get it. 

If your home is damaged by a flood, you won’t be covered by a regular homeowner’s policy. You need to have separate flood insurance. Even renters can benefit from flood insurance. You can view your home’s flood risk by entering your address at the FEMA Flood Map Service Center.

And while we can’t stop storms, we can prepare for them. Be sure to know the evacuation routes in your area and where the nearest shelter is located in case you have to leave your home. And put important items like identification, credit cards and food and water in a “go bag” before a storm approaches.

Here’s what else you should know
this week:

Flood Insurance: What It Is And What It Covers

Knowing what your homeowner's insurance policy does and doesn’t cover could save you much time and grief in the future. Without flood insurance, you could face a major financial disaster if your home gets hit by a flood. To put this in perspective, the average payout on a flood claim from the National Flood Insurance Program (NFIP) is $52,000, according to the most recent data from FEMA.

How Much Homeowners Insurance Do I Need?

As storms get worse and more frequent, you may wonder if your current homeowner's insurance policy is sufficient. Here we break down the types of coverage and what they do.

5 Cheapest Home Insurance Companies (August 2023)

The cost of homeownership isn’t cheap, so it’s wise to shop around when you’re looking for home insurance. We rounded up five cheap insurance companies to help you get started on your search.

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