Property owner in Boca Raton, Florida, Marshall Sklar, recently shared his experience of almost having an insurance policy on one of his properties canceled due to the lack of flood insurance. Little did he know that just hours later, his property’s backyard would be filled with fallen trees and debris. The severity of the storm was captured in a cell phone video, where one of Sklar’s tenants in Hallandale Beach can be heard describing the scene. Sklar, a real estate broker and owner of properties across South Florida, expressed that this storm was the worst they had witnessed in two decades, with the last significant damage occurring in 2005.
Fortunately, Sklar’s insurance coverage came to his rescue, but the incident served as a valuable lesson for him. He revealed that he had received a cancellation notice for the property’s insurance policy the day before the storm because he lacked flood insurance. Realizing the importance of being prepared, Sklar wasted no time and promptly signed up for flood insurance after witnessing the destruction caused by the storm.
Insurance agents who were interviewed regarding Sklar’s situation stated that it is a common occurrence. Stacey Giulianti, the co-founder of Florida Peninsula Insurance Company, explained that homeowners insurance only covers the structure of a home and not flood-related damages. Flood insurance, which is a separate policy, is specifically designed to provide coverage for such catastrophic events. Giulianti emphasized that many homeowners, especially those who are new to Florida, are often unaware of this distinction.
The consequences of not having flood insurance can be financially burdensome. Giulianti highlighted that even just one inch of water can result in damages costing up to $25,000. Considering the potential cost of such damages, the annual premiums for flood insurance, ranging from $400 to $600, seem like a small price to pay. Giulianti expressed that obtaining flood insurance should be a no-brainer for homeowners.
This incident serves as a reminder to homeowners about the importance of understanding the intricacies of their insurance policies. Being well-informed and adequately covered can make a significant difference in mitigating the financial impact of natural disasters.