Flood mitigation experts shine light on seldom-used flood insurance benefit

Mt. Royal, N.J. -- It may be the best-kept secret for National Flood Insurance Program (NFIP) policyholders. Flood Loss Avoidance is a benefit for which you don’t have to file a claim or pay a deductible, but taking advantage of it may save your home from flooding, according to Lisa Sharrard, a national flood mitigation expert and agency owner of Choice Flood Insurance LLC. 

NFIP’s Standard Flood Insurance Policy covers up to $1,000 for reasonable expenses incurred to protect insured property from flooding. This includes the purchase of flood mitigation products and the labor to install them. Using the benefit does not qualify as a claim and does not impact insurance premiums. 

There are more than five million NFIP policyholders nationwide, but only about 10,000 – less than one percent – have taken advantage of the Flood Loss Avoidance benefit in their policies, Sharrard said. 

“The problem is that few policyholders know about this benefit and insurance agents are not familiar enough to inform their clients,” said Sharrard, a Certified Floodplain Manager and licensed insurance agent. “Also, most insurance adjustors don’t know how to write and submit the paperwork.” 

With Hurricane Helene bearing down on her home in North Carolina in September, Sharrard took advantage of the Flood Loss Avoidance benefit by purchasing Dam Easy flood barriers from Floodproofing.com before the storm. The flood barriers, which are reusable and easy to install in doorways or garage openings, helped protect her home from Helene’s devastating floodwaters, potentially saving her tens of thousands of dollars in recovery costs. 

“I wanted a product that I knew was professionally engineered and thoroughly tested and Dam Easy met those criteria,” Sharrard said. “The insurance benefit can also be used for products like sandbags and plastic sheeting, but those aren’t reusable nor environmentally friendly.” 

Sharrard has helped at least five other people take advantage of the Flood Loss Avoidance benefit, including Ashley Holland of Mount Pleasant, South Carolina. Holland researched flood mitigation products before the storm and purchased three Dam Easy barriers. Unlike some of her unfortunate neighbors, floodwater from the storm did not damage her home. 

“I knew I’d be preparing my home for the storm alone,” Holland said. “The Dam Easy flood barriers weren’t too heavy for me to lift and install by myself. Once the storm passed, they were easy to remove and store with no damage to my doorways. I know when the next storm comes, I’ll be able to easily use them again.” 

After the storm, Holland submitted the paperwork for the flood avoidance loss benefit and was reimbursed a little more than a month later for the maximum amount of $1,000. 

To be eligible for the benefit, your home must be in an area where there is an imminent threat of flooding, such as a hurricane warning, requiring measures to preserve life and property from flooding. In addition, any flood mitigation products must be purchased after the storm threat has been issued. 

According to Tyler Ardron, Vice President and Managing Partner of the Insurance Division of Floodproofing.com, the insurance industry has been slow to reward home and business owners for protecting their assets using flood mitigation products, such as Dam Easy. 

“Because the flood mitigation industry is so young, it has taken flood insurers several years to realize that it’s financially prudent to encourage home and business owners to utilize these products,” said Ardron, who is also a Certified Floodplain Manager and Licensed Insurance Agent. “They are starting to realize that flood mitigation is akin to preventative medicine; it will ultimately cost them less to insure protected homes than unprotected homes.” 

Sharrard offered the following tips to NFIP policyholders to take advantage of the benefit: 

• Talk with your insurance agent about the flood loss avoidance benefit. Don’t assume that they are aware of it. 

• Keep your receipts for the products you purchase. 

• Track any labor costs, including your own labor, to deploy flood mitigation products. Detailed records for labor and proof of payment (e.g., check, 1099 or contract) 

• Reusable materials will not be eligible for future reimbursement.  

“Homeowners who take advantage of flood mitigation products to protect their assets deserve to benefit from their efforts,” Sharrard said. “For some, $1,000 may not seem like a lot of money, but when you consider the cost of recovery after a flood, proper flood mitigation is worth much more.” 

About Floodproofing.com Floodproofing.com is the go-to resource for all things related to flood risk and resiliency. We manufacture and supply the largest selection of innovative solutions under one roof and provide complimentary floodproofing design and turnkey assessments that present the best options to mitigate flood damage, improve recovery time, and lower liability risk. In addition, the Floodproofing.com team has spent many years studying the science of flood mitigation and is certified to instruct and provide learning credits to all professionals affiliated with the design-build industry. Also, our in-house insurance agency, Risk Reduction Plus Group, provides flood insurance options with the lowest possible premiums for architects, homeowners, and communities. For more information, visit Floodproofing.com.   

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