Flood insurance is a hot topic in a coastal town! Even if you are not required to buy flood insurance (either because you do not have a mortgage or because you are not “in a flood zone”), you should consider purchasing flood insurance for peace of mind. Here are the top ten facts about the National Flood Insurance Program from FEMA.
Top Ten Facts about the National Flood Insurance Program
Everyone lives in a flood zone
Every piece of land in the US is in a flood zone. Zone X is commonly considered “not in a flood zone”. Floods are caused by storms, melting snow, hurricanes, water backup due to inadequate or overloaded drainage systems or broken water mains.
Flood damage is not covered by homeowners’ policies
You can protect your home, business and belongings with flood insurance from NFIP. Flood damage is not covered by your homeowners’ insurance policy and you must purchase a separate flood insurance policy.
You can buy flood insurance no matter your flood risk
It is a good idea to buy flood insurance even in lower-risk areas because over 20 percent of all NFIP claims come from outside mapped high-risk areas. Flood Zone X is commonly referred to as “not in a flood zone”. However, you can purchase flood insurance even if you are in Flood Zone X.
The low-cost Preferred Risk Policy is ideal for homes and business in moderate- to low-risk areas
Flood insurance can be purchase for only several hundred dollars per year.
Flood insurance is affordable
Policies are available to homeowners, condo owners, apartment owners, renters and business owners alike. Especially when you are in a low-risk flood zone, your flood insurance is relatively inexpensive.
Flood insurance is easy to get
You can buy flood insurance through licensed property insurance agents.
Contents coverage is available to homeowners, business owners and tenants
Up to $100,000 contents coverage is available for homeowners and renters.
Up to a total of $1 million in flood insurance coverage is available for non-residential buildings and contents
There is usually at 30-day waiting period before coverage goes into effect
Plan ahead so you are not caught without insurance when flood threatens your home or business.
Federal disaster assistance is not the answer
Federal disaster assistance is available only if the President declares a disaster. Flood insurance pays even if a disaster is not declared.
***This information was found in the National Flood Insurance Program Top Ten Facts for Consumers FEMA F-301/February 2012 brochure.***