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 is 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:
Up to $250,000 for single-family, two-to-four family, and other residential buildings
Up to $500,000 for non-residential buildings, including small businesses
Up to $100,000 for contents coverage for residences for owners and/or renters
Up to $500,000 for contents for businesses, including small businesses
For more information about the NFIP and flood insurance, contact your
insurance company or agent, or call the NFIP at 1-888-CALL-FLOOD, TDD#
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 1-888-FLOOD29 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.
For more information about the NFIP and flood insurance, call
1-800-427-4661, or contact your insurance company or agent. For an
agent referral, call 1-888-435-6637, TDD 1-800-427-5593.
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. List
insurance companies participating in the
Mortgage Portfolio Protection Program (MPPP).
