Flood Insurance Information
Flood insurance: who needs it, who can get it, is it affordable and other important information
Everyone needs flood insurance and most people can get it throught he National Flood Insurance Program (NFIP) or an independent agent. Flood insurance is easy to obtain and is affordable for many people.
Floods may be caused by heavy rains, drainage problems, water backups, or a number of other reasons. You don't have to live near a lake, stream or other body of water to have flood damage. Any home can become flooded.
Flood damage is not covered under most homeowner's insurance policies. However, you may purchase flood insurance for your home, business or building as well as the contents of that property.
Flood insurance is easy to buy because it is available to all homeowners regardless of their flood risk. You can still buy coverage even if the property has been flooded in the past. Renters also qualify to purchase flood insurance for the contents of their apartment, condominium or other living space. Owners of commercial and non-residential property are able to insure a building's contents from flood damage as well.
The average cost of a flood insurance policy in 1999 for a $100,000 home was about $350 per year. However, in a low to moderate risk area a similar policy for a $100,000 home averaged about $75-100 in 1999. In comparison to repair and replacement costs, insurance rates are usually reasonable.
Flood insurance may be purchased at any time regardless of weather predictions. However, there is typically a waiting period of 30-days before the coverage becomes effective.
Federal disaster assistance may be available to flood victims if the President of the United States declares an area to be a Federal Disaster.
Generally, a small percentage of floods are actually declared Federal Disasters. Also, if you are not insured and receive federal assistance following a flood, you may be required to purchase flood insurance in order to qualify for any future disaster relief benefits.