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Flood insurance is important, with flooding on the rise throughout the United States; FEMA says everyone lives in a flood zone and should have flood insurance on home, business and belongings. It's equally important to get flood insurance from a financially stable, reputable company that will be there when you need them.
- Floods are the number one natural disaster in the United States.
- Everyone is at risk - due to hurricanes, heavy rains, spring thaws mudslides, land development, runoff or other regional events.
- Most homeowners insurance does not cover flood damage.
- More than 50 percent of properties in high-risk areas remain uninsured.
- Twenty-five percent of all flood insurance claims are filed in low- to moderate-risk areas.
- New construction can increase flood risk, especially if it changes natural runoff paths.
- More than 5 million Americans are protected with flood insurance, but millions more are unaware of their risk for property damage - or options for protection.
- There is a 26 percent chance of flooding during a 30- year mortgage, compared to a 9 percent chance of fire for buildings in high-risk areas.
- Flood losses in the US averaged $2.4 billion per year for the last decade.
- The National Flood Insurance Program (NFIP) paid nearly $16 billion in claims to policyholders during the 2005 hurricane season.
- Federal disaster assistance is usually a loan that must be paid back with interest - and is only available when a disaster has been federally declared.
· How much does flood insurance cost? - According to NFIP, as little as $112 a year.
· Who needs flood insurance? - According to FEMA, everyone.
· Who can purchase a flood insurance policy? - Everyone who lives in a participating community of the National Flood Insurance Program (NFIP) can buy flood insurance. Nationwide, almost 20,000 communities have joined the Program to date.
· The Top Ten Facts... every consumer needs to know about the National Flood Insurance Program (NFIP)
· 1. Everyone lives in a flood zone
You don't need to live near water to be flooded. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, etc.
· 2. Flood damage is not covered by homeowners policies
You can protect your home, business, and belongings with flood insurance from the National Flood Insurance Program. You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for its contents.
· 3. Contents coverage is separate, so renters can insure their belongings too
Up to $100,000 contents coverage is available for homeowners and renters. ?Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with the building coverage (except under the Preferred Risk Policy).
· 4. You can buy flood insurance no matter what your flood risk is
It doesn't matter whether your flood risk is high or low. You can buy flood insurance as long as your community participates in the National Flood Insurance Program. And, it's a good idea to buy even in low-risk areas: between 20 and 25 percent of all flood insurance claims come from low-risk areas.
· 5. The low-cost Preferred Risk Policy is ideal for homes and businesses in low- to moderate-risk areas
Homeowners can insure buildings and contents for as little as $112 per year. Business owners can insure building and contents for as little as $500 per year. Residential renters can insure contents for as little as $39 per year.
· 6. Flood insurance is affordable
The average flood insurance policy costs a little more than $400 a year for about $100,000 of coverage. In comparison, a $50,000 disaster home loan can cost you about $240 a month at 4 percent interest over 20 years.
· 7. Flood insurance is easy to get
You can buy NFIP flood insurance from private insurance companies and agents; call yours today! You may be able to purchase flood insurance with a credit card.
· 8. Up to a total of $1 million of flood insurance coverage is available for non-residential buildings and contents
Up to $500,000 of coverage is available for non-residential buildings. Up to $500,000 of coverage is available for the contents of non-residential buildings.
· 9. There is usually a 30-day waiting period before the coverage goes into effect
Plan ahead so you're not caught without flood insurance when a flood threatens your home or business.
· 10. Federal disaster assistance is not the answer
Federal disaster assistance is only available if the President declares a disaster. Flood insurance pays even if a disaster is not declared. It’s just good sense to protect your home and business.
As an independent insurance agent we can offer the right coverages with the personal touch you would expect from your neighborhood insurance agent. To contact us click here.
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