Report Looks at Risk from Storm Surges

05/03/2010

Unless they have experienced flooding, homeowners may not consider the impacts a possible storm surge can have on their home or economy.

Even individuals living in a flood plain or other risky area are often hesitant to buy the insurance necessary to protect against these damages, according to a recent report by the Insurance Journal. The report looked at research from First American Spatial Solutions showing that a category 5 hurricane could cause some $53.6 billion in damage if it struck Miami.

"Homeowners can mitigate against wind damage, but they're powerless, really, to do anything against storm surge," Howard Botts, FASS vice president and director of development, told the Journal.

Knowing about their risk and the cost it would take to rebuild a structure may help homeowners understand the importance of flood insurance, according to Botts. Risk and tax data sets produced by FASS may also help insurers determine premiums.

Protection against flood damage is not included in the standard home insurance policy, but can be purchased through the National Flood Insurance Program, oeprated by the Federal Emergency Management Agency.

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