April 1, 2025 • 22 mins
In this episode, host Peter Haines, elder at Concho Valley OPC in Concho Valley, AZ, leads a discussion with Brian Tilton, deacon at Trinity OPC in Hatboro, PA, and co-owner of Millham Companies, a personal and business insurance firm in Pennsylvania. Together, they explore the topic of flood insurance—its importance, how it works, and its role in our responsibility as stewards of what God has entrusted to us. They also discuss how deacons can collaborate with congregants to help them make informed decisions about the relevance of flood insurance for their families. We hope this conversation will serve as a valuable resource, particularly for deacons as they assist church families in evaluating their budgets.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
So, deacons, if they do face these tragedies, where
they're helping those victimswho have flooded, you show an
extra measure of grace and carefor them as they get through the
traumatic event Welcome to theReformed Deacon a casual
conversation with topicsspecifically designed to help
(00:21):
local Reformed deacons.
Speaker 2 (00:23):
There are nearly a thousand deacons in the OPC
alone, so let's take thisopportunity to learn from and
encourage one another.
We're so glad you could join us.
Let's jump into our nextepisode.
Speaker 3 (00:35):
Hi, my name is Peter Haynes.
I live in the mountains ofnorthern Arizona, attend Concho
Valley Orthodox PresbyterianChurch and, by God's grace, I
serve as an elder there, as wellas serving on the OPC Committee
on Diakla Ministries.
You probably recall that backin July I spoke with David Drake
and Chris Lennon about personalinsurance.
If you want to check it out, itis Season 3, episode 16.
(00:56):
This episode is a sort ofrelated discussion.
Today we're tackling floodinsurance, a topic that often
feels a bit distant until it'snot.
We'll tackle why it's important, how it works and what it means
for our responsibility asstewards of what God has
entrusted to us, and how deaconscan work with congregants to
wisely decide on its relevanceto them.
(01:17):
I think this discussion couldbe a particularly good resource
for deacons as they work withchurch families through budget
evaluations.
I'll be talking with BrianTilton about flood insurance.
Brian is the co-owner of MilhamCompanies, a personal and
business insurance company inPennsylvania.
Brian serves as a deacon atTrinity OPC in Hatboro,
pennsylvania.
Hi, brian, it seems like floodinsurance is one of those things
(01:40):
that a lot of laymen get wrong.
There's popular misconceptionsout there about who can get it
and who can't.
Could you start by just simplyclearing up any of what, in your
experience, are a fewmisconceptions.
So we're all on the same page.
Speaker 1 (01:52):
Yeah, I'd be happy to do that, peter.
I've been in the insuranceindustry for over 40 years, so I
have some experience alongthese lines and served as a
deacon for over 20 years atTrinity Church in Hatboro.
Flood insurance is a bit of amystery to most people.
Everybody knows they needhomeowner's insurance.
Everybody knows they need autoinsurance.
(02:14):
Flood insurance is one of thosethings that people put on the
back burner.
They think it's never going tohappen to them.
It's usually not requiredunless the mortgage company
requires it for settlement.
So a lot of people opt not toget it, hoping that nothing
happens to them.
So one of the misconceptions isthat oh, I have homeowner's
(02:35):
insurance, therefore myhomeowner's policy will cover if
my house gets flooded.
Well, that's not true.
All homeowner's policiesexclude flooding.
Flooding defined as risingwaters, overflowing creeks,
overflowing rivers, a lot ofrain in a short period of time
that creates flooding.
(02:57):
Homeowner's policies are notdesigned to cover that at all.
So that's a misconception.
If you want flood insurance,you need to purchase a separate
flood insurance policy.
You can get a little bit ofextra water protection coverage
under your homeowner's policy,for instance water backup
coverage for a finished basement, but you cannot buy flood
(03:21):
insurance from a homeowner'sinsurance company.
It's through the National FloodInsurance Program, so that is a
mystery to a lot of people.
But today we'll try to clear upsome things about that.
Speaker 3 (03:33):
So you mentioned that it's not a part of homeowner's
insurance, that it's a separatething.
Is it only for homeowners, orcan renters also get flood
insurance?
Speaker 1 (03:43):
Generally speaking, a homeowner will buy this
coverage because the criticalcoverage is the house.
If your house floods andbecomes damaged or inundated
with water, it can cause a lotof damage.
If you simply have contents,oftentimes you can elevate your
contents to a higher level oryou don't own that much in the
(04:05):
way of contents.
So it's more critical to haveflood insurance.
If you own a building, own thehouse.
But yes, renters can purchaseflood insurance at a fairly low
cost, but it's not as common todo that.
Speaker 3 (04:21):
I think you mentioned , it's not necessarily required
by law to have flood insurance,but some mortgages will require
it.
Is this if you live in a floodzone or a typical area, what
other things would make us haveto carry it?
Speaker 1 (04:35):
That is correct.
So if you're in a flood zoneand we can help determine if
you're in a flood zone, but ifyou're in a flood zone you will
not get a mortgage without floodinsurance because a mortgage
company will make that arequirement to provide the loan.
They do not want a house thatthey're providing a mortgage on
to be swept away in a flood andthe homeowner not to have any
(04:57):
coverage, so they will mandateit at the time of settlement or
at the time you take out theloan.
So the way to determine if youhave risk for flood insurance at
least higher risk you would goto a website called
floodsmartgov.
(05:17):
Floodsmartgov, that is anational website that indicates
your level of risk based on youraddress.
So it will determine historicflood areas, flood locations, it
will often determine elevationand it will indicate whether
(05:38):
getting flood insurance is agood idea for you or not.
So floodsmartgov, enter youraddress for you or not.
So floodsmartgov, enter youraddress.
That will help determine therisk.
You'll be given a differentgrading based on where you live,
and then they do drill down onthat further by getting exact
elevation measurements how highabove sea level is your house?
(06:01):
How likely is your house tohave a flood, so be sure to
write down that web address ifyou're curious as to what your
risk is.
That's a very good resource.
Speaker 3 (06:13):
So some people might believe that because they can
rely on FEMA in a flood, thatthey don't need any kind of
extra insurances.
What would you say to that?
Speaker 1 (06:23):
Well, that's how a lot of people think and, in
reality, how it often works.
So flood insurance is notpurchased very often.
It is optional.
Again, most people feel they'renot in a high flood risk area,
so they don't buy it.
And then all of a sudden, rainswill come in a particular area,
(06:43):
get stalled out over that area,creating massive flooding and
leaving people with a lot ofdamage.
So it is important to buy thecoverage.
I think of the recent floodingin North Carolina.
People in North Carolina wouldnot have anticipated that a
(07:04):
hurricane would get stalled overthe mountains, causing flooding
downstream in the foothills ofthe mountains.
Speaker 3 (07:16):
So that's a situation where it would be important to
get that type of coverage.
Is there anything else thatNorth Carolina residents could
have done ahead of time, besidesflood insurance, to help
protect them from the disaster?
Speaker 1 (07:25):
that came, of course, in hindsight, good if everybody
had flood insurance.
But going into that, no one waspredicting that level of rain
from a hurricane to come thatfar north and do that much
damage, so it's very difficultto plan ahead for anything like
that.
So in general you can providelandscape grading that tends to
(07:49):
keep drainage water away fromyour home, but these floods come
so quickly that you don't havetime to react typically Put up
sandbags.
So there's not a lot in thatsituation that a prudent person
would have done differentlybased on the low risk.
(08:09):
Now, if they're along a creekand along a drainage area, you
perhaps could have anticipatedsome flooding and taken some
precaution.
But that is a unique anddifferent situation.
That is not what we normallysee for floods.
Usually we see them inlow-lying areas, near the coast
(08:33):
or near a river.
Speaker 3 (08:34):
The question is kind of about that in a broad way,
several questions in the samequestion.
The average homeowner may thinkthat flood insurance only
applies to those who live nearwater.
They would say that's ahigh-risk area.
But floods don't always respectthat, like we saw in North
Carolina.
Heavy rain, overflowing rivers,hurricanes and even snow melt
(08:56):
Essentially any water thatinundates land that's normally
dry.
Does that mean everyone shouldhave flood insurance?
And then wouldn't my insuranceprovider have told me, hey, you
should have flood insurance if Ineed it?
Speaker 1 (09:06):
Yes.
So it'd be great if everybodyjust paid in flood insurance.
It would lower the cost.
But they don't want to make it100% mandatory, so they have not
gone to that step yet.
So therefore, you have a fewpeople buying flood insurance,
which tends to make it moreexpensive and there's less money
(09:27):
in the pool.
But in terms of risk, if you'rein a coastal location I think
of Florida, new Jersey coast,other coastal locations you're
at a much higher risk forflooding because hurricanes can
come up the coast, can raise thewater level with water surges
(09:47):
and create damage along thecoast.
But also lower level elevationsare at risk too.
So if you're near a river andyou happen to be in a lower
elevation, those are the higherrisk areas.
And you mentioned earlier aboutFEMA.
If you don't buy insurance, youwill get some coverage,
(10:11):
typically from FEMA.
The problem with FEMA is thedelays in payment.
You have to apply for coverage.
You're not sure what you'll getpaid.
You're not sure how long itwill take to get paid.
So, again, if you're in a riskarea coastal risk area, low
elevation area you will want tobuy the coverage because the
(10:31):
coverage will work better thanthe FEMA answer.
But in reality a lot of peopledon't buy the flood insurance,
so FEMA has to step in to helpthese people who have not
decided to buy their insuranceahead of time.
Generally speaking, snowmelt isnot going to be an issue unless
you have massive snowaccumulation at higher levels
(10:54):
and you live at lower levels inthe path of potential snow melt.
But usually you're not going toget major flooding in a typical
neighborhood from snow melt.
It's going to be related tomassive accumulations of snow.
Speaker 3 (11:09):
We've had a little bit here in Arizona.
I live at elevation I'm at7,000 feet and sometimes if we
have a good winter and we get agood snowpack and then suddenly
we get a nice warm time and thenwe call them monsoons it's
really funny to me.
We get a heavy rain, so it'llmix like the end of April and
May We'll get the snow meltingwhile it's raining at 7 000 feet
(11:32):
.
I've had to go around adifferent street because there's
a three foot river across theroad.
That wasn't there before yeah itdoesn't happen often, but every
once in a while, so it's evenat 7 000 foot elevation.
Speaker 1 (11:44):
Flooding is something that can happen because of our
snow yeah, because of theaccumulation up in the mountains
it can be a torrent of meltedwater.
That is correct Melted snow.
Speaker 3 (11:56):
Another question is is flood insurance one size fits
all or are there degrees ofcoverage?
Speaker 1 (12:01):
So it's based on a number of factors.
One, the value of the home.
If you have a small home andyou don't need much coverage,
it's going to be a lot lessexpensive than a huge home that
needs more coverage.
If you're in a non-floodlocation, that rate's going to
be fairly inexpensive.
If you're in a high-risk floodlocation, that rate's going to
be more expensive.
(12:21):
So there are factors like thatthat go into coverage.
You can choose a certain amountof coverage for the building.
You're not likely to have atotal loss to the house in a
flood.
A home catches on fire can burndown to the ground.
A home that's damaged by floodtypically is a flood that comes
(12:42):
through but does not remove thestructure from its footings.
It just creates a lot of damage.
So often you can buy floodinsurance but maybe cut back on
the coverage and not insure thebuilding to 100%, but insure it
up to the limit that you thinkwould be damaged if you did have
a serious flood.
(13:02):
So it's not a one-size-fits-all.
It's very specifically rated,based on location, zip code,
geography, elevation, level ofcoverage and then finally, the
deductible you choose.
You can choose anywhere from$1,000 deductible to a $10,000
(13:23):
deductible and you might think,well, I don't have much risk,
but I want to have some floodinsurance.
Might think, well, I don't havemuch risk, but I want to have
some flood insurance.
Therefore, I'll get a quote,but use a higher deductible of
$5,000 or maybe $10,000.
So it's there for catastrophe,but you're not going to submit a
smaller type claim.
Speaker 3 (13:40):
So regarding costs, would it be possible to give us
a little bit of a specific?
So say, I have a friend wholives in a three-bedroom,
two-bath home along theSchuylkill River.
Approximately how much wouldthey be expecting to have flood
coverage of some type?
Speaker 1 (13:57):
Yeah, we can work on that.
So along the river I think ofthe Schuylkill River, I think of
Delaware River these are proneto chronic flooding.
If you get a lot of rain youwill have the rivers overflow
their banks.
So if you have a home along theriver that's subject to
flooding, that's going to befairly expensive.
(14:17):
If you decide to get floodinsurance and you are in another
location in Delaware County orBucks County or somewhere far
away from typical flooding,it'll be much less expensive.
So if you're getting lowamounts of coverage in a
non-risk area, you may be paying$500 to $800 a year for your
(14:40):
flood insurance coverage.
That's considerable, a low rate.
If you are in a higher riskarea, you could be paying
upwards of $2,000 to $3,000 ayear for your insurance.
So it is a big cost,particularly if you're in an
area prone to flooding.
So price ranges that I've seenI've seen the lowest $600 and
(15:05):
the highest around $8,000.
So that's the range.
It does vary quite a bit basedon risk and based on elevation.
That's very helpful, thank you.
Speaker 3 (15:15):
So, Brian, what would you say to a homeowner to
determine if it's worth it?
Is it a mathematical thing?
Is it a feeling of comfortthing?
Is it both?
What do you do to decide?
Speaker 1 (15:28):
Well, that's a difficult decision and a
personal decision.
Some people have a highertolerance for risk.
Others want to ensure everyscenario.
So the first step would be todiscuss it with a knowledgeable
agent.
You probably already have anagent that handles your
homeowners and auto insurance.
Have a conversation with them.
(15:49):
Do they feel, based on yourlocation, which they should be
familiar with it warrants payingfor flood insurance?
So that would be the first stepTalk to a knowledgeable agent.
Go to that website I talkedabout and determine your own
level of risk.
If you're at a higher elevationand away from water flooding
(16:11):
areas, you may see all thesereports on TV of homes that are
flooded and get quite upset andworried, but in reality,
statistically, your home is notlikely to be affected by flood.
So determine your level of riskbased on rating factors and
then finally get a sample quote.
(16:32):
If you get a quote and findit's $800 premium and you think
that's a reasonable premium, togive you some peace of mind
about that, it might make sensefor you to go out and buy the
coverage.
If you find out that it's quiteexpensive, you know, maybe you
want to make otherconsiderations or choose a
higher deductible.
So actually get a quote so youknow what dollars you're talking
(16:57):
about, and that will help youmake your decision for you.
Thank, you.
Speaker 3 (17:01):
That's great advice.
So some deacons and others inthe church might be tempted to
think that a homeowner whosehome was flooded but didn't have
insurance was being negligent.
Is there any truth to thisnotion that?
How would you, as an OPC deaconbut also an expert in this
matter, encourage deacons toview those in our church who are
victims of significant floodswithout proper coverage?
Speaker 1 (18:01):
They are to give good advice to their members in
their church.
They certainly are not to bejudgmental in stating that well,
you should have anticipate thisrare storm that might come
through to do that type ofdamage, and human nature might
be to procrastinate a little bit.
There's so many things to spendmoney on.
You're spending a lot thesedays on homeowners insurance.
You're spending a lot on autoinsurance.
You know it is difficult tocome up with another $1,000 or
$2,000 for flood insurance ifyou don't perceive you have the
(18:23):
risk.
So, deacons, if they do facethese tragedies where they're
helping those victims who havebeen flooded, you show an extra
measure of grace and care forthem as they get through the
traumatic event.
To have your home flood isdevastating.
(18:44):
It takes a while to clean it up.
It takes a lot of expense toclean it up.
A lot of times neighborhoodswill rally together, but
certainly the church should bethere as a backup to provide
assurance to the person who hashad a flood and physical
(19:05):
assistance if rebuilding isneeded.
So one thing you know some ofthese members wondering if they
should have flood insurance.
They should talk to theneighbors, you know, have they
ever experienced a flood in theneighborhood and again talk to
the agent to determine whetherit's worth doing that.
(19:27):
But in reality, even with allthe facts and statistics ahead
of time, a lot of people don'tmake the decision to buy flood
insurance.
So we should have an extrameasure of grace for those
facing these tragedies withoutproper coverage.
Speaker 3 (19:45):
So, as we wrap up this episode, for someone who's
listening today, who might befeeling overwhelmed by this
information, what than onereally.
Speaker 1 (19:57):
So first go to floodsmartgov, determine your
risk, get knowledge, read aboutflood insurance, what it covers,
what it doesn't cover.
If you're merely concernedabout your basement flooding,
you can buy sump pump backupcoverage.
You can buy drainage backupcoverage for $100 under your
(20:18):
homeowner's policy.
That may satisfy your biggestrisk a flooded basement.
But if you are more concernedabout the broader, more serious
flooding, then again go tofloodsmartgov.
Determine your risk, discusswitha knowledgeable agent, which
we've already talked about.
Go around to your neighborhoodand discuss what are your
(20:39):
neighbors doing?
You're likely to find yourneighbors aren't buying this
flood insurance either, butmaybe discussion should be held
on a neighborhood level todetermine, you know, whether
there's some wisdom in pursuingthese quotes.
And then, finally, as deaconsin the church, they should be
familiar with the geography thatthey're in.
Is it a high-risk location?
(21:01):
If so, they should meet withmembers of the congregation to
help discuss these issues.
Insurance more broadly propertycasualty insurance is a broad
topic that the deacons shouldcover when they meet with their
members.
That the deacons should coverwhen they meet with their
members.
And then, more specifically,flood insurance, particularly
(21:22):
when we see all these floodevents on TV, including floods
that affect the OPC denomination, including floods that affect
members of our local churches.
We want to be proactive inplanning and thinking ahead of
time wherever we can.
Speaker 3 (21:38):
Well, thank you, brian, for joining me today to
talk about this important yetsomewhat complex subject.
Hearing this has been helpfulto me and I hope it's been just
as beneficial to our listeners.
God bless.
Speaker 2 (21:49):
Thank you, Peter.
Thanks for joining us.
Go to our website,thereformedeaconorg.
There you will find all ourepisodes, program notes and
other helpful resources, andplease make plans to join us
again for another episode of theReform Deacon Podcast.
So, deacons, if they do face these tragedies, where
they're helping those victimswho have flooded, you show an
extra measure of grace and carefor them as they get through the
traumatic event Welcome to theReformed Deacon a casual
conversation with topicsspecifically designed to help
(00:21):
local Reformed deacons.
Speaker 2 (00:23):
There are nearly a thousand deacons in the OPC
alone, so let's take thisopportunity to learn from and
encourage one another.
We're so glad you could join us.
Let's jump into our nextepisode.
Speaker 3 (00:35):
Hi, my name is Peter Haynes.
I live in the mountains ofnorthern Arizona, attend Concho
Valley Orthodox PresbyterianChurch and, by God's grace, I
serve as an elder there, as wellas serving on the OPC Committee
on Diakla Ministries.
You probably recall that backin July I spoke with David Drake
and Chris Lennon about personalinsurance.
If you want to check it out, itis Season 3, episode 16.
(00:56):
This episode is a sort ofrelated discussion.
Today we're tackling floodinsurance, a topic that often
feels a bit distant until it'snot.
We'll tackle why it's important, how it works and what it means
for our responsibility asstewards of what God has
entrusted to us, and how deaconscan work with congregants to
wisely decide on its relevanceto them.
(01:17):
I think this discussion couldbe a particularly good resource
for deacons as they work withchurch families through budget
evaluations.
I'll be talking with BrianTilton about flood insurance.
Brian is the co-owner of MilhamCompanies, a personal and
business insurance company inPennsylvania.
Brian serves as a deacon atTrinity OPC in Hatboro,
pennsylvania.
Hi, brian, it seems like floodinsurance is one of those things
(01:40):
that a lot of laymen get wrong.
There's popular misconceptionsout there about who can get it
and who can't.
Could you start by just simplyclearing up any of what, in your
experience, are a fewmisconceptions.
So we're all on the same page.
Speaker 1 (01:52):
Yeah, I'd be happy to do that, peter.
I've been in the insuranceindustry for over 40 years, so I
have some experience alongthese lines and served as a
deacon for over 20 years atTrinity Church in Hatboro.
Flood insurance is a bit of amystery to most people.
Everybody knows they needhomeowner's insurance.
Everybody knows they need autoinsurance.
(02:14):
Flood insurance is one of thosethings that people put on the
back burner.
They think it's never going tohappen to them.
It's usually not requiredunless the mortgage company
requires it for settlement.
So a lot of people opt not toget it, hoping that nothing
happens to them.
So one of the misconceptions isthat oh, I have homeowner's
(02:35):
insurance, therefore myhomeowner's policy will cover if
my house gets flooded.
Well, that's not true.
All homeowner's policiesexclude flooding.
Flooding defined as risingwaters, overflowing creeks,
overflowing rivers, a lot ofrain in a short period of time
that creates flooding.
(02:57):
Homeowner's policies are notdesigned to cover that at all.
So that's a misconception.
If you want flood insurance,you need to purchase a separate
flood insurance policy.
You can get a little bit ofextra water protection coverage
under your homeowner's policy,for instance water backup
coverage for a finished basement, but you cannot buy flood
(03:21):
insurance from a homeowner'sinsurance company.
It's through the National FloodInsurance Program, so that is a
mystery to a lot of people.
But today we'll try to clear upsome things about that.
Speaker 3 (03:33):
So you mentioned that it's not a part of homeowner's
insurance, that it's a separatething.
Is it only for homeowners, orcan renters also get flood
insurance?
Speaker 1 (03:43):
Generally speaking, a homeowner will buy this
coverage because the criticalcoverage is the house.
If your house floods andbecomes damaged or inundated
with water, it can cause a lotof damage.
If you simply have contents,oftentimes you can elevate your
contents to a higher level oryou don't own that much in the
(04:05):
way of contents.
So it's more critical to haveflood insurance.
If you own a building, own thehouse.
But yes, renters can purchaseflood insurance at a fairly low
cost, but it's not as common todo that.
Speaker 3 (04:21):
I think you mentioned , it's not necessarily required
by law to have flood insurance,but some mortgages will require
it.
Is this if you live in a floodzone or a typical area, what
other things would make us haveto carry it?
Speaker 1 (04:35):
That is correct.
So if you're in a flood zoneand we can help determine if
you're in a flood zone, but ifyou're in a flood zone you will
not get a mortgage without floodinsurance because a mortgage
company will make that arequirement to provide the loan.
They do not want a house thatthey're providing a mortgage on
to be swept away in a flood andthe homeowner not to have any
(04:57):
coverage, so they will mandateit at the time of settlement or
at the time you take out theloan.
So the way to determine if youhave risk for flood insurance at
least higher risk you would goto a website called
floodsmartgov.
(05:17):
Floodsmartgov, that is anational website that indicates
your level of risk based on youraddress.
So it will determine historicflood areas, flood locations, it
will often determine elevationand it will indicate whether
(05:38):
getting flood insurance is agood idea for you or not.
So floodsmartgov, enter youraddress for you or not.
So floodsmartgov, enter youraddress.
That will help determine therisk.
You'll be given a differentgrading based on where you live,
and then they do drill down onthat further by getting exact
elevation measurements how highabove sea level is your house?
(06:01):
How likely is your house tohave a flood, so be sure to
write down that web address ifyou're curious as to what your
risk is.
That's a very good resource.
Speaker 3 (06:13):
So some people might believe that because they can
rely on FEMA in a flood, thatthey don't need any kind of
extra insurances.
What would you say to that?
Speaker 1 (06:23):
Well, that's how a lot of people think and, in
reality, how it often works.
So flood insurance is notpurchased very often.
It is optional.
Again, most people feel they'renot in a high flood risk area,
so they don't buy it.
And then all of a sudden, rainswill come in a particular area,
(06:43):
get stalled out over that area,creating massive flooding and
leaving people with a lot ofdamage.
So it is important to buy thecoverage.
I think of the recent floodingin North Carolina.
People in North Carolina wouldnot have anticipated that a
(07:04):
hurricane would get stalled overthe mountains, causing flooding
downstream in the foothills ofthe mountains.
Speaker 3 (07:16):
So that's a situation where it would be important to
get that type of coverage.
Is there anything else thatNorth Carolina residents could
have done ahead of time, besidesflood insurance, to help
protect them from the disaster?
Speaker 1 (07:25):
that came, of course, in hindsight, good if everybody
had flood insurance.
But going into that, no one waspredicting that level of rain
from a hurricane to come thatfar north and do that much
damage, so it's very difficultto plan ahead for anything like
that.
So in general you can providelandscape grading that tends to
(07:49):
keep drainage water away fromyour home, but these floods come
so quickly that you don't havetime to react typically Put up
sandbags.
So there's not a lot in thatsituation that a prudent person
would have done differentlybased on the low risk.
(08:09):
Now, if they're along a creekand along a drainage area, you
perhaps could have anticipatedsome flooding and taken some
precaution.
But that is a unique anddifferent situation.
That is not what we normallysee for floods.
Usually we see them inlow-lying areas, near the coast
(08:33):
or near a river.
Speaker 3 (08:34):
The question is kind of about that in a broad way,
several questions in the samequestion.
The average homeowner may thinkthat flood insurance only
applies to those who live nearwater.
They would say that's ahigh-risk area.
But floods don't always respectthat, like we saw in North
Carolina.
Heavy rain, overflowing rivers,hurricanes and even snow melt
(08:56):
Essentially any water thatinundates land that's normally
dry.
Does that mean everyone shouldhave flood insurance?
And then wouldn't my insuranceprovider have told me, hey, you
should have flood insurance if Ineed it?
Speaker 1 (09:06):
Yes.
So it'd be great if everybodyjust paid in flood insurance.
It would lower the cost.
But they don't want to make it100% mandatory, so they have not
gone to that step yet.
So therefore, you have a fewpeople buying flood insurance,
which tends to make it moreexpensive and there's less money
(09:27):
in the pool.
But in terms of risk, if you'rein a coastal location I think
of Florida, new Jersey coast,other coastal locations you're
at a much higher risk forflooding because hurricanes can
come up the coast, can raise thewater level with water surges
(09:47):
and create damage along thecoast.
But also lower level elevationsare at risk too.
So if you're near a river andyou happen to be in a lower
elevation, those are the higherrisk areas.
And you mentioned earlier aboutFEMA.
If you don't buy insurance, youwill get some coverage,
(10:11):
typically from FEMA.
The problem with FEMA is thedelays in payment.
You have to apply for coverage.
You're not sure what you'll getpaid.
You're not sure how long itwill take to get paid.
So, again, if you're in a riskarea coastal risk area, low
elevation area you will want tobuy the coverage because the
(10:31):
coverage will work better thanthe FEMA answer.
But in reality a lot of peopledon't buy the flood insurance,
so FEMA has to step in to helpthese people who have not
decided to buy their insuranceahead of time.
Generally speaking, snowmelt isnot going to be an issue unless
you have massive snowaccumulation at higher levels
(10:54):
and you live at lower levels inthe path of potential snow melt.
But usually you're not going toget major flooding in a typical
neighborhood from snow melt.
It's going to be related tomassive accumulations of snow.
Speaker 3 (11:09):
We've had a little bit here in Arizona.
I live at elevation I'm at7,000 feet and sometimes if we
have a good winter and we get agood snowpack and then suddenly
we get a nice warm time and thenwe call them monsoons it's
really funny to me.
We get a heavy rain, so it'llmix like the end of April and
May We'll get the snow meltingwhile it's raining at 7 000 feet
(11:32):
.
I've had to go around adifferent street because there's
a three foot river across theroad.
That wasn't there before yeah itdoesn't happen often, but every
once in a while, so it's evenat 7 000 foot elevation.
Speaker 1 (11:44):
Flooding is something that can happen because of our
snow yeah, because of theaccumulation up in the mountains
it can be a torrent of meltedwater.
That is correct Melted snow.
Speaker 3 (11:56):
Another question is is flood insurance one size fits
all or are there degrees ofcoverage?
Speaker 1 (12:01):
So it's based on a number of factors.
One, the value of the home.
If you have a small home andyou don't need much coverage,
it's going to be a lot lessexpensive than a huge home that
needs more coverage.
If you're in a non-floodlocation, that rate's going to
be fairly inexpensive.
If you're in a high-risk floodlocation, that rate's going to
be more expensive.
(12:21):
So there are factors like thatthat go into coverage.
You can choose a certain amountof coverage for the building.
You're not likely to have atotal loss to the house in a
flood.
A home catches on fire can burndown to the ground.
A home that's damaged by floodtypically is a flood that comes
(12:42):
through but does not remove thestructure from its footings.
It just creates a lot of damage.
So often you can buy floodinsurance but maybe cut back on
the coverage and not insure thebuilding to 100%, but insure it
up to the limit that you thinkwould be damaged if you did have
a serious flood.
(13:02):
So it's not a one-size-fits-all.
It's very specifically rated,based on location, zip code,
geography, elevation, level ofcoverage and then finally, the
deductible you choose.
You can choose anywhere from$1,000 deductible to a $10,000
(13:23):
deductible and you might think,well, I don't have much risk,
but I want to have some floodinsurance.
Might think, well, I don't havemuch risk, but I want to have
some flood insurance.
Therefore, I'll get a quote,but use a higher deductible of
$5,000 or maybe $10,000.
So it's there for catastrophe,but you're not going to submit a
smaller type claim.
Speaker 3 (13:40):
So regarding costs, would it be possible to give us
a little bit of a specific?
So say, I have a friend wholives in a three-bedroom,
two-bath home along theSchuylkill River.
Approximately how much wouldthey be expecting to have flood
coverage of some type?
Speaker 1 (13:57):
Yeah, we can work on that.
So along the river I think ofthe Schuylkill River, I think of
Delaware River these are proneto chronic flooding.
If you get a lot of rain youwill have the rivers overflow
their banks.
So if you have a home along theriver that's subject to
flooding, that's going to befairly expensive.
(14:17):
If you decide to get floodinsurance and you are in another
location in Delaware County orBucks County or somewhere far
away from typical flooding,it'll be much less expensive.
So if you're getting lowamounts of coverage in a
non-risk area, you may be paying$500 to $800 a year for your
(14:40):
flood insurance coverage.
That's considerable, a low rate.
If you are in a higher riskarea, you could be paying
upwards of $2,000 to $3,000 ayear for your insurance.
So it is a big cost,particularly if you're in an
area prone to flooding.
So price ranges that I've seenI've seen the lowest $600 and
(15:05):
the highest around $8,000.
So that's the range.
It does vary quite a bit basedon risk and based on elevation.
That's very helpful, thank you.
Speaker 3 (15:15):
So, Brian, what would you say to a homeowner to
determine if it's worth it?
Is it a mathematical thing?
Is it a feeling of comfortthing?
Is it both?
What do you do to decide?
Speaker 1 (15:28):
Well, that's a difficult decision and a
personal decision.
Some people have a highertolerance for risk.
Others want to ensure everyscenario.
So the first step would be todiscuss it with a knowledgeable
agent.
You probably already have anagent that handles your
homeowners and auto insurance.
Have a conversation with them.
(15:49):
Do they feel, based on yourlocation, which they should be
familiar with it warrants payingfor flood insurance?
So that would be the first stepTalk to a knowledgeable agent.
Go to that website I talkedabout and determine your own
level of risk.
If you're at a higher elevationand away from water flooding
(16:11):
areas, you may see all thesereports on TV of homes that are
flooded and get quite upset andworried, but in reality,
statistically, your home is notlikely to be affected by flood.
So determine your level of riskbased on rating factors and
then finally get a sample quote.
(16:32):
If you get a quote and findit's $800 premium and you think
that's a reasonable premium, togive you some peace of mind
about that, it might make sensefor you to go out and buy the
coverage.
If you find out that it's quiteexpensive, you know, maybe you
want to make otherconsiderations or choose a
higher deductible.
So actually get a quote so youknow what dollars you're talking
(16:57):
about, and that will help youmake your decision for you.
Thank, you.
Speaker 3 (17:01):
That's great advice.
So some deacons and others inthe church might be tempted to
think that a homeowner whosehome was flooded but didn't have
insurance was being negligent.
Is there any truth to thisnotion that?
How would you, as an OPC deaconbut also an expert in this
matter, encourage deacons toview those in our church who are
victims of significant floodswithout proper coverage?
Speaker 1 (18:01):
They are to give good advice to their members in
their church.
They certainly are not to bejudgmental in stating that well,
you should have anticipate thisrare storm that might come
through to do that type ofdamage, and human nature might
be to procrastinate a little bit.
There's so many things to spendmoney on.
You're spending a lot thesedays on homeowners insurance.
You're spending a lot on autoinsurance.
You know it is difficult tocome up with another $1,000 or
$2,000 for flood insurance ifyou don't perceive you have the
(18:23):
risk.
So, deacons, if they do facethese tragedies where they're
helping those victims who havebeen flooded, you show an extra
measure of grace and care forthem as they get through the
traumatic event.
To have your home flood isdevastating.
(18:44):
It takes a while to clean it up.
It takes a lot of expense toclean it up.
A lot of times neighborhoodswill rally together, but
certainly the church should bethere as a backup to provide
assurance to the person who hashad a flood and physical
(19:05):
assistance if rebuilding isneeded.
So one thing you know some ofthese members wondering if they
should have flood insurance.
They should talk to theneighbors, you know, have they
ever experienced a flood in theneighborhood and again talk to
the agent to determine whetherit's worth doing that.
(19:27):
But in reality, even with allthe facts and statistics ahead
of time, a lot of people don'tmake the decision to buy flood
insurance.
So we should have an extrameasure of grace for those
facing these tragedies withoutproper coverage.
Speaker 3 (19:45):
So, as we wrap up this episode, for someone who's
listening today, who might befeeling overwhelmed by this
information, what than onereally.
Speaker 1 (19:57):
So first go to floodsmartgov, determine your
risk, get knowledge, read aboutflood insurance, what it covers,
what it doesn't cover.
If you're merely concernedabout your basement flooding,
you can buy sump pump backupcoverage.
You can buy drainage backupcoverage for $100 under your
(20:18):
homeowner's policy.
That may satisfy your biggestrisk a flooded basement.
But if you are more concernedabout the broader, more serious
flooding, then again go tofloodsmartgov.
Determine your risk, discusswitha knowledgeable agent, which
we've already talked about.
Go around to your neighborhoodand discuss what are your
(20:39):
neighbors doing?
You're likely to find yourneighbors aren't buying this
flood insurance either, butmaybe discussion should be held
on a neighborhood level todetermine, you know, whether
there's some wisdom in pursuingthese quotes.
And then, finally, as deaconsin the church, they should be
familiar with the geography thatthey're in.
Is it a high-risk location?
(21:01):
If so, they should meet withmembers of the congregation to
help discuss these issues.
Insurance more broadly propertycasualty insurance is a broad
topic that the deacons shouldcover when they meet with their
members.
That the deacons should coverwhen they meet with their
members.
And then, more specifically,flood insurance, particularly
(21:22):
when we see all these floodevents on TV, including floods
that affect the OPC denomination, including floods that affect
members of our local churches.
We want to be proactive inplanning and thinking ahead of
time wherever we can.
Speaker 3 (21:38):
Well, thank you, brian, for joining me today to
talk about this important yetsomewhat complex subject.
Hearing this has been helpfulto me and I hope it's been just
as beneficial to our listeners.
God bless.
Speaker 2 (21:49):
Thank you, Peter.
Thanks for joining us.
Go to our website,thereformedeaconorg.
There you will find all ourepisodes, program notes and
other helpful resources, andplease make plans to join us
again for another episode of theReform Deacon Podcast.
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