Experts remind homeowners of the common misconceptions of hurricane insurance

HORRY COUNTY, SC (WMBF) - We're quickly approaching the peak of hurricane season. Right now, the National Flood Insurance Program is set to expire at the end of this month on July 31, which could be a problem for federally insured flood zone properties this summer.

The program was developed back in the 1960's to help cover high risk areas for flood damage. However, climate change and rising sea temperatures have led to more frequent natural disasters, leaving the program billions of dollars in debt. Congress is currently struggling to secure money to fund the program.

For those along the Grand Strand currently waiting to close on a home, if their loans don't close before Congress comes up with the money, they may not be able to settle on their house. Because of this, homeowners and realtors are urging lawmakers to fund the program and extend it for a seventh consecutive time.

"Typically, they'll retro date it back. The problem is, for new purchases, when they expire, we can't write, we can't bind, we can't cancel, we can't do anything with the program itself until it's reauthorized. Current policy holders are unaffected, as long as their renewal hasn't come into play during the lapse. But an option that a lot of consumers could look into if they have maybe a frame home, or a townhouse or a business property is a private market. Private market has nothing to do with FEMA, so when the program lapses, it has no effect on them," said Amanda Vibbert, insurance broker with Moore & Associates Insurance.

Insurance agents say homeowners need to be proactive and not to wait until the last minute to get coverage. Everyone along the Grand Strand is in a flood zone. However, not everyone is in a high risk flood zone. Insurance agents say that's a huge misconception they deal with, and unfortunately it creates a sense of security people may think they have. Agents say because of that misconception, many people had no flood insurance and a lot of flooding damage happened inland away from the coast in recent years.

Be prepared. If you haven't already, now is the time to make sure your policy is up to date and understand your responsibilities to protect you against loss. Agents stress homeowners should know the actual dollar amount of their deductibles before something happen, adding people need to realize that because of damage control, many companies stop writing new policies once a named storm watch and warning are put into place. Most insurers suspend writing new policies until several weeks after the storm passes.

"So, the National Flood program doesn't cut us off because there is a waiting period. But with the private market, if we have a storm near us or if were in the cone of uncertainty, we will be put into what is called moratorium with all our companies. So, we cannot bind anything, we can't cancel, we can't endorse, so we highly recommend that you can get it any time of the year. There's no set time, everyone can be susceptible to flooding anytime of the year and they should at least check the rate - but not wait till the last minute, because last minute is a little too late," said Vibbert.

Insurance agents say with the increase of severe weather in our area, homeowners should be mindful with how that impacts them all year round, not just hurricane season.

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