Don’t Get Swamped: Why Flood Insurance is a Summer Imperative for Every Hollywood Property

Hollywood and Broward County: our little slice of paradise. We live and work in a beautiful landscape defined by canals, coastal waterways, and proximity to the Atlantic Ocean. But this beauty comes with a non-negotiable risk: flooding. While we are all familiar with the annual threat of hurricanes, the reality is that flooding can, and does, happen anytime, anywhere in South Florida. It can be caused by a heavy, localized summer downpour, a rising tide, or a storm that doesn’t even make a direct hit. The single biggest mistake a homeowner can make is assuming they are protected.

At Finney Insurance Corporation, we are on the front lines of this reality. We’ve seen firsthand the devastation that a foot of water can cause—and the heartbreak of a family discovering their homeowners policy provides no financial relief. The most critical piece of information for any Hollywood homeowner is this: standard homeowners insurance policies do not cover flood damage. It is a universal exclusion, a fundamental gap that must be addressed with a separate policy. As your local insurance experts, we are here to guide you through the complexities of flood insurance and explain why it is an absolute summer imperative for every property in Broward County.

The Perilous Myth of “Flood Zones”

The concept of FEMA flood zones, while useful, has created a dangerous misconception. Many homeowners who are told they live in a “low-risk” or “X” flood zone feel a false sense of security and choose not to purchase flood insurance. The truth is, flood risk in Florida is not confined to a map.

• Anywhere it rains, it can flood. A “flood” for insurance purposes is defined as a general and temporary condition of partial or complete inundation of two or more acres of normally dry land or of two or more properties from the overflow of inland or tidal waters, or the unusual and rapid accumulation or runoff of surface waters from any source. This means that if a summer storm drops 10 inches of rain on your Hollywood neighborhood and water accumulates on your property and a neighbor’s, it qualifies as a flood, regardless of your FEMA zone.
• The statistics don’t lie. A significant percentage of NFIP flood claims—about 25%—occur in low- or moderate-risk areas. This underscores the fact that the risk of flooding is not determined solely by your property’s proximity to a body of water. Urbanization, over-saturated ground, and overwhelmed storm drains can all cause catastrophic flooding in zones deemed “safe.” A recent example of this was the historic flooding in South Florida in April of 2023, where a localized storm system dropped feet of rain, causing widespread damage and displacing thousands, in areas not considered high-risk.

The High Cost of Getting Swamped

The financial fallout of a flood can be staggering. Unlike a fire, where a claim might be for a portion of the home, a flood can cause total destruction to everything on the lowest level of your property.

• Average Damage Costs: The average flood insurance claim payout in the U.S. is approximately $42,000. However, this average masks the true cost of a significant event. A single inch of water can cause over $25,000 in damage, and it doesn’t take much to cause catastrophic destruction to your home’s foundation, walls, appliances, and personal belongings.
• A National Problem: The National Flood Insurance Program (NFIP) has paid over $73.5 billion in claims to date. This staggering number highlights the immense financial impact of floods on communities nationwide, with a significant portion of those claims coming from Florida.
• No FEMA Bailout: For many, the hope of a federal disaster declaration and FEMA assistance is a last resort. However, this assistance is usually a low-interest loan that you must repay, not a grant. The average FEMA disaster grant for a flood is only about $5,000, a pittance compared to the tens or hundreds of thousands of dollars in damages a flood can cause.

Navigating Your Options: NFIP vs. Private Flood Insurance

For decades, the NFIP was the only game in town for flood insurance. However, as flood risk modeling has improved, a robust private flood insurance market has emerged as a compelling alternative, offering more flexibility and comprehensive coverage.

National Flood Insurance Program (NFIP)

The NFIP provides a standardized, federally-backed flood insurance policy. It’s a reliable and widely available option, but it has some significant limitations:

• Coverage Caps: The NFIP caps its coverage at $250,000 for the building and $100,000 for personal belongings. For many Hollywood homes with higher values, this leaves a huge gap between the replacement cost and what the policy will pay.
• Actual Cash Value for Contents: NFIP policies only pay the actual cash value (ACV) for personal belongings, which means they subtract for depreciation. The check you receive for your damaged sofa or television will not be enough to buy a brand-new replacement.
• No Additional Living Expenses (ALE): The NFIP does not cover the cost of temporary housing, hotel bills, or restaurant meals if a flood makes your home uninhabitable.

Private Flood Insurance

A competitive private flood insurance market has opened up, with many carriers offering policies that address the shortcomings of the NFIP. These policies can be a game-changer for Hollywood homeowners.

• Higher Limits: Private carriers can offer significantly higher coverage limits, often up to $500,000 or more for the building and up to $250,000 for contents—sometimes even higher, depending on the carrier.
• Replacement Cost for Contents: Many private flood policies offer replacement cost coverage for your personal belongings, ensuring you can replace what you lose without financial strain.
• Broader Coverage: Private policies can offer additional coverages not available from the NFIP, such as Additional Living Expenses (ALE), and coverage for basements, pools, and landscaping.
• Potentially Faster Payouts: Private insurers have a financial incentive to provide excellent customer service and a streamlined claims process, often leading to a quicker payout and resolution than a government-run program.

FAQs About Flood Insurance in Hollywood & Broward County

Finney Insurance: Your Flood Insurance Experts

Don’t let the summer storms of Broward County catch you off guard. At Finney Insurance Corporation, we are passionate about protecting our community, and that begins with a serious conversation about flood insurance. We will take the time to:

• Assess your unique risk based on your property’s location and elevation.
• Explain the differences between NFIP and private flood insurance options.
• Provide a no-obligation quote from a range of top-rated carriers.
• Help you find the right coverage with higher limits and broader protection to safeguard your home and financial future.

This hurricane season, be smart. Be prepared. Don’t get swamped. Contact Finney Insurance Corporation today for a consultation and ensure your Hollywood home is fully protected.

John Finney President

Finney Insurance Corporation was founded in 2009 by John Finney in order to purchase Stirling Insurance Services Davie location. After being the Sales Manager for Ken Finney State Farm for eight years, John Finney purchased Stirling Insurance Services which had been in business for over 20 years.He knew that he wanted to be an independent agent due to the fact of the diversity of products and companies to help people, and because his potential was not limited. In short, John and his staff were tired of telling people “Sorry I can not help you”. Ken Finney’s office was closed in 2010 after 34 years of serving the community’s insurance needs due to State Farm stating they were pulling out of the state for homeowners insurance. Finney Insurance Corporation moved into Ken’s old location and hired most of his employees.It was a very difficult task to undertake without having all of the State Farm business, as it was given to other State Farm agents. Today that struggle and decision has paid off. Finney Insurance Corporation now has been growing at an incredible rate because of its diversity in an ever changing marketplace and its neighborhood agency feel for its clients. All of Finney Insurance’s staff are experienced professionals some with over 25 years in the industry. They care about the companies they represent and their customers. We are also proud members of the Hollywood Chamber of Commerce and Latin American Association of Insurance Agencies. The Finney family has been involved in the community for 34 years and plan to continue to support the community with our agency. We also want to increase our services to our clients through technology and knowledge of new insurance concepts. Once we have fully realized our potential in our current location we would like to expand to other locations in Florida through acquisitions. Our marketing, referrals, cross sales, and bond with clients is our real strength and source of increased business to date and will continue in the future. We feel by aligning ourselves with quality companies we can be successful in a mutually beneficial relationship and provide the highest quality and selection for our customers to help them with all of their insurance needs; instead saying, “Yes, we can help you with that!”

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