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Things You Should Know About Flood Insurance For most of us, our home is by far our most valuable possession. But every year, more homes in the U.S. are damaged by floods than any other natural disaster. People who live near water are not the only ones who experience flooding. Floods move, and can spread for miles. They can have strong currents that, in a few moments, can sweep away everything that took a lifetime to accumulate, leaving a thick residue of mud and debris behind. It's not just high risk areas that are flooded. Between 20 and 25 percent of flood insurance claims come from a medium or low flood-risk areas. Fortunately, you can protect yourself and your future from the crippling financial losses often caused by flooding through a program administered by the Federal Emergency Management Agency (FEMA). Under FEMA's National Flood Insurance Program (NFIP), federally backed flood insurance is available in communities that adopt and enforce regulations to reduce flood losses. Flood insurance provides coverage that your homeowners insurance doesn't - coverage for damages caused by floods. The good news is that about 20,000 communities in the United States and its territories that are faced with potential flooding participate in the NFIP, so the chances are excellent that flood insurance is available to you. Flood Insurance vs. Disaster Assistance Flood insurance s far better protection than depending on Federal disaster assistance, which is available only if a disaster is federally declared. If you have a flood insurance policy, you can be reimbursed for all your covered losses, even if a disaster is not federally declared. In contrast, Federal disaster assistance is often a loan - repayable in full - with interest! With a flood insurance policy, all you have to pay is one annual premium. Then, if you suffer losses due to flooding, you will be reimbursed for your covered losses and you'll never have to pay a nickel back. Flood insurance is affordable. The average flood insurance premium costs approximately $400 a year for an average of $100,000 of coverage. However, paying back a $50,000 disaster home loan, for example, will cost an average of $240 a month - for an average repayment period of 30 years! And of course, if you are not insured, and a Federal disaster is not declared, your home and belongings may be ruined with no hope for recovery. Protect yourself, your family, your home, and your financial future. Call your insurance company or agent to find out if your community participates in the NFIP. If it does, ask for details about how to buy flood insurance. Do it today. Policies go into effect 30 days after a policy is purchased. Protect your home and your family today. As long as your community participates in the National Flood Insurance Program, except for areas protected by the Coastal Barrier Resources Act, you can purchase a flood insurance policy. Whether you live in an area likely to flood or in one that is at low risk, you can purchase flood insurance. There are times when you may be required to purchase flood insurance. If you buy a house in a designated high-risk area, and receive a mortgage loan from a federally regulated lender, your lender must, by law, require that you buy flood insurance. Coverage is available for residential and commercial buildings and contents, and can also be purchased by renters:
For more information about the NFIP and flood insurance, contact your insurance company or agent, or call the NFIP at 1-800-427-5593. Buying Flood Insurance To buy a flood insurance policy, call your insurance agent or contact one of the Write Your Own companies, private insurance companies that write flood insurance under a special arrangement with the Federal government. If your agent does not write flood insurance or you don't have an agent, you may call the National Flood Insurance Program's (NFIP) toll free number to obtain the name of an agent in your area who does write flood insurance. The number is or TDD# 1-800-427-5593. You can also check your local Yellow Pages directory. It's a good idea to have the same agent who writes your homeowners or other insurance policies also write your flood insurance policy so in the event you need to file a claim, you only have to work with one insurance agency or company. How can you pay for flood insurance? You can pay the full annual premium for flood insurance with a credit card (Visa or MasterCard) or by cash, check or money order. Another way flood insurance premiums can be paid is through an escrow account established by your mortgage lender. In fact, if your lender requires you to buy flood insurance and escrows for other types of insurance or taxes, the lender is required to also escrow flood insurance premium payments. Ask your insurance agent or lender for details. Your Homeowners Insurance Doesn't Cover Floods, Federal flood insurance does. Floods can happen anytime, anywhere. They cause anguish and destruction - physical, emotional, and financial. Especially when victims realize the damage isn't covered by their home owner's insurance policy. Federal disaster assistance? It's not the answer either. Why? Because in most cases, the only aid disaster victims may qualify for is a loan, and that must be repaid - with interest! Only Federal flood insurance reimburses you for flood damage to your property! With one annual premium, you can protect your most important investment - your home and your finances. Call your insurance agent or company today. Ask about the National Flood Insurance Program. There's no better way to save for a rainy day. Participating Insurance Companies You may also contact an insurance agent or company to find out more about Federal flood insurance. The Federal Insurance Administration does not specifically endorse any of the companies listed.
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