Ezekeil Hudson's Insurance Podcast
Hudson Agency, LLC, provides comprehensive guides for customers on purchasing insurance. The site outlines the different types of insurance coverages available, including Homeowners, Commercial, Auto, and Life coverage. It then provides step-by-step instructions on how to purchase a policy, from assessing needs and researching providers to comparing quotes and understanding exclusions. Call
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Ezekeil Hudson's Insurance Podcast
Uncovering the Hidden Risks of Flood Insurance: Essential Tips to Protect Your Property with Ezekiel Hudson
Think you’re safe from floods because you don't live near the coast? Think again! Join us as we uncover the hidden truths about flood insurance with insights from Ezekiel H Hudson's "How to Buy Flood Insurance." You'll discover why relying on standard homeowner's insurance is a risky gamble and how FEMA maps are just the tip of the iceberg when it comes to understanding your flood risk. Learn how to become your own flood detective by considering factors like local drainage efficiency and proximity to water sources beyond just oceans.
We break down the essentials of flood insurance, explaining the crucial differences between building property and personal property coverage. From protecting your home's fundamental structure to safeguarding your treasured belongings like electronics and art, we cover it all. But be cautious—there are exclusions you need to know about, particularly for items stored in basements. This episode is loaded with practical advice to help you thoroughly understand your flood risk and ensure your property is adequately protected. Don't miss out on these vital tips that could save you from devastating losses.
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Hey, everybody, welcome in, Ready to dive into something really important with us today.
Speaker 2:Absolutely. Let's do it.
Speaker 1:Today we're taking a deep dive into flood insurance, a topic that's way more relevant than many people realize. Yeah, that's right. We're going to really get into it with help from Ezekiel H Hudson's book how to Buy Flood Insurance.
Speaker 2:Great book.
Speaker 1:Now most people think flood insurance that's for folks living on the coast, but, as we'll see, that's not always the case, is it?
Speaker 2:Not at all. That's a really common misconception. People think, oh, I've got homeowner's insurance, I'm covered. But standard homeowner's or renter's insurance doesn't usually cover flood damage.
Speaker 1:Right, right. So we need to think about flood insurance, no matter where we live.
Speaker 2:Exactly, it's crucial to have that separate flood insurance policy.
Speaker 1:Okay, so when I hear flood risk, honestly my brain goes straight to those FEMA maps, you know, with the different zones. Are those maps, though, really enough to figure out our risk? What do you think?
Speaker 2:Well, those FEMA maps are definitely a good starting point. They give us that broad overview, but they shouldn't be the only thing we look at.
Speaker 1:Okay, so what else should we be considering?
Speaker 2:Well, this guide, it really emphasizes that there's a bunch of other things that come into play. Yeah, like, how close are you to a source of water?
Speaker 1:Right.
Speaker 2:And it doesn't even have to be an ocean. It could be a lake, a river, even just a creek. That's interesting. And then think about your local drainage system. Is it efficient? Is it older infrastructure, and has your area experienced flooding in the past?
Speaker 1:Oh, I see what you mean.
Speaker 2:Yeah, because sometimes that historical data it might not even be on those FEMA maps.
Speaker 1:That's a really good point. So even if we're not smack dab in a high risk zone, our property could still be vulnerable.
Speaker 2:Absolutely, you got it and that's why this guide. It encourages everyone to think of themselves as kind of a flood detective you know, like talk to people who've lived in your area for a while.
Speaker 1:Yeah, yeah.
Speaker 2:Ask them about their experiences. If they've ever dealt with flooding, do some digging into the historical flood data for your specific area. The more information you have, the better you can understand your actual risk.
Speaker 1:That makes so much sense becoming your own flood detective. It's not just about your address. It's about really getting to know your property, its history and any potential risks.
Speaker 2:Right, you got it. Connect the dots, put those pieces together. Think about your property, its past and the risks, some that might not be so obvious at first glance.
Speaker 1:Exactly so. We know flood insurance is important. It's separate from our regular insurance.
Speaker 2:Right.
Speaker 1:But what does it actually cover? You know, when we talk about flood damage, what are we really talking about?
Speaker 2:Well flood insurance. It usually covers two main categories building property and personal property.
Speaker 1:Okay, so building property, personal property, break those down for me.
Speaker 2:So building property, that's the structure itself, your foundation, your walls, the roof, even those built-in appliances like your HVAC system. Basically, it's about protecting the core parts of your home or your business, if you own one.
Speaker 1:Makes sense. And then what about personal property? That's where it gets interesting, right, like what all falls under that.
Speaker 2:Yeah, so personal property, that's all your stuff your furniture, clothes, electronics, appliances like washers and dryers, even valuable stuff, like if you have art or jewelry. Those might be included too, although there are usually limits on how much they'll cover for those really valuable things. It depends on the specific policy.
Speaker 1:So it sounds pretty comprehensive, but I'm betting there are some things that might trip people up. What about those gotcha moments, those exclusions people should be aware of?
Speaker 2:Oh, you're absolutely right. There are some important exclusions to watch out for. One of the big ones is basement coverage.
Speaker 1:Oh really.
Speaker 2:Yeah, a lot of standard policies, especially the ones from the National Flood Insurance Program, you know, NFIP.
Speaker 1:Right NFIP.
Speaker 2:They offer really limited coverage for anything you've got stored in your basement.
Speaker 1:Wow, I wouldn't have thought of that. So anyone listening who has a finished basement? They might want to take a second look at their policies.
Speaker 2:Definitely a good idea. Another common exclusion is landscaping.
Speaker 1:Oh, interesting.
Speaker 2:Damage to your garden fences, even a swimming pool, things like that. They're usually not covered under that standard flood insurance.
Speaker 1:So if you've put a lot of work into your yard, your outdoor space, or if you have, like you said, important things stored in the basement, it might be worth looking into getting some extra coverage.
Speaker 2:Exactly and this guide. It talks about adding what they call riders to your policy.
Speaker 1:Riders adding what they call writers to your policy, Right writers.
Speaker 2:Yeah, you can think of them like add-ons for specific things, specific items or situations that fall outside of that standard coverage.
Speaker 1:Okay, that's good to know. So we've talked about what flood insurance covers, some of those things to watch out for. Now let's switch gears a bit and talk about the different types of flood insurance. There's the NFIP, which you mentioned, and then there's private flood insurance. How do those two compare?
Speaker 2:That's a big decision choosing between NFIP and private flood insurance. It really often comes down to your own individual needs how much risk you're comfortable with. The guide does a really good job of breaking down the pros and cons of each.
Speaker 1:It even has that comparison table. I found that super helpful. Let's start with NFIP. What are the advantages there?
Speaker 2:So the NFIP, that's been the main source of flood insurance in the US for quite a while now the main source of flood insurance in the US for quite a while now. It's managed by FEMA and it's available to pretty much most homeowners and renters, which is a huge plus.
Speaker 2:Yeah, I bet that's especially important in those high-risk areas where it can be hard to find coverage. Oh, absolutely, In those really flood-prone areas, NFIP. It's often the only option and because it's backed by the government, you know it's going to be there to pay out those claims even after a major disaster.
Speaker 1:That peace of mind is definitely a big factor, but I know the guide mentioned something about coverage limits, with NFIP being something to consider.
Speaker 2:Yeah, that's right. It's important to know that the NFIP it does provide that essential coverage, but the limits they might not be enough for everyone. The most they'll cover for building property is $250,000. And for your personal stuff it's $100,000. So if your home or your belongings are worth more than that, you might end up with a gap in your coverage.
Speaker 1:Which leads us to the other option, that private flood insurance. What are the advantages there?
Speaker 2:So private flood insurance. It's been getting more and more popular lately and it usually offers higher coverage limits. Often you can get up to $1 million for the building and $500,000 for your contents. Plus it can be more flexible. You can tailor it more to what you need as an individual.
Speaker 1:It definitely sounds like private insurance could be the better option if you need those higher limits or you have specific needs that require more flexibility. But are there any downsides to going the private route?
Speaker 2:The main downside is availability. Private flood insurance. You can't get it everywhere. Insurers can be picky, especially in those high-risk areas we talked about and, unlike the NFIP which has those fixed premiums private insurance premiums they can change. You might see those rates go up over time.
Speaker 1:So it's kind of a trade-off then. With private. You might get better coverage, more flexibility, but you lose some of that predictability in terms of cost and maybe even if you can get it at all.
Speaker 2:You got it. It's about weighing those factors. How much coverage do I need, what can I afford, and how comfortable am I with that potential for change?
Speaker 1:Okay, so we've got the NFIP, we've got private insurance two different paths we could go down. Right Now, let's say, all right, we're ready to start looking at some quotes. Okay, what should people be thinking about as they navigate that process?
Speaker 2:Well, it's important to remember that flood insurance premiums they're not all created equal. Right, there are all these different factors that can affect the cost, and the more you understand these factors, the better decisions you can make.
Speaker 1:Makes sense. So we know location's a biggie right.
Speaker 2:Absolutely Location, location, location.
Speaker 1:But even within, say, the same flood zone, are there things that can impact the premium?
Speaker 2:Oh, yeah, for sure. Even if you're in the same zone as your neighbor, the elevation of your house compared to that base flood elevation, that makes a huge difference.
Speaker 1:Oh interesting. So higher elevation, lower risk, lower premiums.
Speaker 2:Exactly you got it. The higher up you are, the less likely you are to get flooded, and that usually means you'll pay less for insurance.
Speaker 1:So what about those flood resistant features we hear about? You know like building your house a certain way.
Speaker 2:Do those actually help bring down the cost? They really can. I'm glad you brought that up. The guy talks about how things like flood resistant vents you know, putting those in or elevating your utilities, having those reinforced foundations Right those things can really lower your risk and that often translates to lower premiums. It's all about minimizing that potential damage, right. Yeah, it's all about minimizing that potential damage, right.
Speaker 1:Yeah, it's like you're sharing the responsibility a little bit with the insurance company.
Speaker 2:Exactly.
Speaker 1:You're taking those steps to protect yourself.
Speaker 2:Right. And you know what else is interesting Communities that really get serious about flood mitigation, like improving drainage systems or building levees. They can actually see better rates overall. It benefits everyone.
Speaker 1:That makes sense. It's like a community effort. So we've got location, elevation, those building features, community efforts. It's a lot to keep in mind. It is. And then I know the guide also talks about deductibles and how important those are to understand.
Speaker 2:Oh, deductibles, yes, Don't forget about those.
Speaker 1:It's easy to just focus on the premiums, but that deductible that's huge too.
Speaker 2:Right, because that's what you're paying out of pocket before the insurance kicks in. Exactly, you got it, yeah. So a higher deductible usually means you pay less every month, but if something happens and you need to make a claim, you're going to be shelling out more up front.
Speaker 1:So again, it's about finding that balance, what works for you. And, of course, we can't forget about those exclusions, those sneaky little details in the policy so important, like we talked about before. Those can really trip people up. So it's crucial to go over those carefully with your agent, especially if you've got a unique situation like that finished basement or valuable landscaping. Asking questions is You've got to find that coverage that really fits your needs and your budget.
Speaker 2:I totally agree. It's all about being informed. This has been such a great deep dive. I've enjoyed really digging into this topic with you.
Speaker 1:Me too, it's been eye-opening. We've learned so much about flood insurance. It's definitely more than meets the eye. It's about knowing your risk, understanding the ins and outs of those policies and, ultimately, it's about protecting what matters most.
Speaker 2:Exactly. And Ezekiel Hudson, the author of how to Buy Flood Insurance. He leaves us with this powerful question how would you rebuild if the unthinkable happened? It really makes you think, right. It's a good reminder for all of us to assess our preparedness, take those steps to protect ourselves.
Speaker 1:Absolutely Such a powerful question and a great place to leave it for our listeners today. So until next time. Everyone thanks for joining us for another deep dive.