PARK CITY — Many lives were changed when historic floods ripped through southeastern Montana in June of 2022.
The historic flood damaged homes and properties that weren’t covered by flood insurance, leaving long-term financial damage in its wake.
FEMA reports national flood risk is on the rise.
They administer the National Flood Insurance Program, which enables property owners and renters in participating communities to purchase insurance against flood losses in exchange for additional regulations.
Here’s some statistics to put their risk assessment in perspective:
- 2021 was the third most active year for tropical storms in recorded history.
- Between 1996 and 2019, 99% of U.S. counties were impacted by a flooding event.
Riley Parisot, an insurance agent with Stockman Bank, says flood insurance could be a good idea for any homeowner or renter.
Their assessments always start with the FEMA flood map and the zones they publish semi-annually that indicate various levels of risk, he said.
If you are looking to get a mortgage to buy a new home or refinance your existing mortgage, flood insurance is typically required.
“Other factors include what your elevation of your property is located in. If it's in a lower plane, obviously you're more prone to having flood impacts. If you're at a higher plane (it) is probably less of a risk. Another factor is just the structure itself. Is it on a multi-story foundation? Is it lower towards the river or another body of water?” Parisot said.
Insurance agents also look at the total value of a property.
FEMA reports about 40% of NFIP claims come from outside of high-risk flood zones.
“When it comes to low-risk areas, obviously no one thinks that they’re ever going to be impacted by a flood, right? But it can happen, just like last year, those 500-year floods can come out of nowhere. One important factor of flood insurance that people don’t always understand is that it's a particular policy that requires a 30-day wait period through the National Flood Insurance Program,” he said.
This means you can’t get immediate protection as you watch the water rise near your home.
Interest in flood insurance comes with floods, he said.
