National Flood Insurance Program

When it comes to flood insurance, you need to do your research. Like everything in life, not having all the specifics can cost you your life’s savings. Owners of both homes and businesses need to learn the specifics, so you invest in the right type of flood insurance and you don’t get a run for your money.

In 1968, congress created the National Flood Insurance Program (NFIP). The government created this program due to the increasing amount of damage caused by floods. The Federal Emergency Management Agency (FEMA) manages the NFIP and oversees the floodplain management and mapping components of the program. Within participating communities, FEMA is responsible for determining the degree to which flooding might endanger any area of land.

Over 20,000 communities in the United States and its territories participate in the NFIP by accepting and enforcing floodplain management ordinances to decrease any future flood damage from occuring. The NFIP makes national flood insurance available to homeowners, renters, and business owners in these communities.

What’s great about this program is that you and your community can purchase flood insurance even if you live in a high-flood-risk area. If your community participates in the National Flood Insurance Program (NFIP), you can buy National Flood Insurance no matter where you live. This program has become extremely popular over the years. Each day hundreds of communities join the NFIP.

You can buy National Flood Insurance anytime - but the policy isn’t effective until a 30-day waiting period after the first premium payment. This thirty-day waiting period can be waived if the policy was purchased within 13 months of a flood map revision. If the initial flood insurance purchase was made during this 13-month period, then there is only a one-day waiting period. This one-day provision only applies when the Flood Insurance Rate Map (FIRM) is revised to show the building is now in a high-flood-risk area.
And what’s amazing about this program is that even if your property has been flooded. As long as your community is in the NFIP, you are qualified to purchase flood insurance even after your home, apartment, or business has been flooded.

Many people think because they don’t live in a high-flood-risk area, that they do not need flood insurance, but the truth of the matter is all areas are susceptible to flooding. Nearly 25 percent of the NFIP claims come from outside high-flood-risk areas. My home was flooded once and I come from a low-risk area. You never know when a bad storm can pass through your area and your home could end up getting flooded.
NFIP flood insurance is sold through private insurance companies and agents or sold directly. The NFIP also offers basement coverage also. A basement, as defined by NFIP, is any building area with a floor below ground level on all sides. Basement improvements - finished walls, floors or ceilings - are not covered by flood insurance; nor are personal belongings, like furniture and other contents. But flood insurance does cover structural elements and essential equipment, provided it is connected to a power source (if required) and installed in its functioning location.

FEMA protects many of your valuable contents under their “building coverage.”

This includes the following:

• Sump pumps
• Well-water tanks
• Pumps
• Cisterns and the water inside
• Oil tanks and the oil inside
• Natural gas tanks and the gas inside
• Pumps or tanks used with solar energy
• Furnaces
• Water heaters
• Air conditioners
• Heat pumps
• Electrical junction and circuit breaker boxes (and their utility connections)
• Foundation elements
• Stairways
• Staircases
• Elevators
• Dumbwaiters
• Unpainted drywall walls and ceilings (including fiberglass insulation) and cleanup expenses.

Protected under “content coverage” are:

• clothes washers and dryers
• food freezers and the food inside them

The NFIP recommends both building and content coverage be purchased for the most comprehensive protection. For more information, they have an official website you can go to.

Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S. People can never be replaced; buildings and personal property can if you have flood insurance.

The possibility of having a flood in your home is not a fantasy, it’s a reality. Unfortunately, many people do not realize the importance of having flood insurance. It is essential that people be aware of the danger of flooding for protection of their family and property. While lives can never be replaced, buildings and personal property can be if you have flood insurance.

In spite of this, many have realized this only after becoming victims of this environmental nightmare, which is floods.

Did you know that flood damage to buildings and personal property is not covered under a standard homeowners, condominium or renters insurance policy? Many people assume that is covered and when a flood occurs in home after the fact when it’s too late. Flood insurance is different then a standard homeowners policy because flood insurance covers losses to your property caused by flooding.

Some of the things a standard flood policy will cover include:

• Furnace
• Water heater
• Air conditioner
• Flood debris clean up
• Floor surfaces such as carpeting and tile

When purchasing flood insurance you can also buy a flood insurance policy to cover the valuable items inside your home, such as furniture, collectibles, clothing, jewelry and artwork, expensive sculpture and so forth.

Policies are available in three forms:

• Dwelling (most homes)
• General Property (apartments and businesses),
• Residential Condominium Building Association (condominiums).

Flood insurance must be purchased to guarantee protection of your home and personal property as a result of flood. Surprisingly, many people don’t carry flood insurance even though each year thousands of people’s homes are destroyed by floods. When asked why they never purchased flood insurance they responded, “I didn’t think it could happen too me.”

And what’s most shocking is that many who have previously suffered damage from floods still have failed to purchase the coverage. In many instances the decision is one of economics. Flood insurance is expensive. However, when weighed against the cost of replacing a home, property, or the contents inside a home it’s worth every penny. I know because I was one of those flood victims and luckily I had flood insurance to home and my family.

Articles from www.nationalfloodinsuranceprogram.org

If you think only certain areas are prone to floods, then I’m sorry to say but you’re wrong. This may come to a surprise to you, but everyone lives in a flood zone. Floods and flash floods can occur in all 50 states at anytime.

Many people assume that a flood will be covered under their home owners insurance. Unfortunately, they realize that it’s not covered under their home owners insurance when they try to submit a claim for a flood that just occurred to their home.

This is a scary thought because with the high costs of living, it takes people years of hard work to acquire a house and the valuable contents inside the home. And within a matter of minutes this could all be gone due to the cause of one flood. And unless you’re Donald Trump without flood insurance how is someone expected to pay for the damages caused by floods, so they can restore their home?

Many people think that you need large amounts of rain, storms, hurricanes, etc… to cause a flood. Reports have indicted that you only need one inch of water caused by a flood to cause damage to your home and property. Also, if a flash flood occurs you could be hit with walls of water all the way from ten to twenty feet high.

Did you know that if your community gets hit with two feet of flood water your car can easily be carried away by the flood. We all know how expensive it costs to buy or lease a car.

Many people who did not carry flood insurance and were hit by floods are forced to get a loan from a financial lender because their options are limited you could end up paying back the money you borrowed with high interest rates. Another financial debt to add onto your payback list.

Your options…

• You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program.
• When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%. You save almost have the cost of the flood insurance policy. This is well worth having especially because people who experienced floods lived in low-risk areas.

Is it worth joining the National Flood Insurance Programs? You decide…

• Last year, one-third of all flood claims paid by the National Flood Insurance Programs were for policies in low-risk communities. Areas that were least likely to be hit were the ones that experienced damage to their homes and areas.
• The average annual U.S. flood losses in the past 10 years more than $2.4 billion.
• The National Flood Insurance Programs paid almost $16 billion in flood claims. So you know that this program is reliable and that they want to help people when flooding disaster occurs.
• Reports show that since 1978, the National Flood Insurance Programs has paid $31.4 billion for flood insurance claims and related costs.

People are now starting to grasp the importance of having flood insurance. Communities are realizing that this insurance is something that you cannot go without. Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S. Remember, a lifetime of savings you put into your home and community can disappear with one flood. Protect yourself. Protect your family.

Articles from www.nationalfloodinsuranceprogram.org

Finding the right flood insurance company for your home or business is extremely important. A flood can occur almost anywhere. Flood insurance should become a primary need for those individuals living in flood prone regions, and especially in areas where there is a high-risk of flooding. Even residents who do not live in a high-risk area should invest in flood insurance. There are numerous providers available, and you can even get flood insurance through your homeowner’s policy provider. Below is a list of home owner flood insurance companies that may be of some help to you.

• State Farm (provides national coverage)
• Bankers Insurance Group (provides national coverage)
• Allstate (provides national coverage)
• Travelers (provides national coverage)
• Unisun (provides regional coverage)
• GEICO (many auto-insurance providers also have flood protection!)
• Mutual of Omaha (provides national coverage)
• FEMA (provides federal flood insurance coverage through the National Flood Insurance Program)

These are just a few of the flood insurance providers available. You can also go to www.floodsmart.gov which is a FEMA sponsored website that will give you a detailed list of flood insurance providers near your home. Some will offer cheap flood insurance, but others have higher rates. Always be sure to check what is covered no matter what the cost is!

The Costs

A flood insurance quote will vary based on where you live. People who are living in a high-risk flood area are likely to pay more than someone who is residing in a low-risk area. Coastal residents can definitely expect to pay more for home owner flood insurance. In fact, some mortgage companies will not even consider you for a new home unless you plan on purchasing flood insurance in these areas. Flood insurance cost is not as much as you might think. Residents can expect to pay on average around $350 a year, but this rate does go up for people living along the coastline or in high-hazard areas. There are different flood insurance policies depending upon what you are trying to have insured. Homes are covered under the “Dwelling” policy, and can receive up to $250,000 coverage. Residents living in a house can also receive an additional $100,000 for their personal possessions. Commercial buildings typically receive $500,000 for the building, and an additional $500,000 for inside possessions. Condominiums are usually insured for complete replacement costs. These figures are typical standards, so always check to make sure what your policy covers and how much it will cover.

FEMA sponsors national flood insurance through the National Flood Insurance Program. Communities who participate in this program have to adhere to stringent house and building codes in order to reduce catastrophic damage associated with flooding. By upholding FEMA’s regulations, the community receives federal flood insurance. You can go to FEMA’s website at www.fema.gov and do a search for “Community Status Book” to see if your community is apart of this FEMA national flood insurance policy plan.

Don’t Wait!

Floods can occur anywhere, anytime so waiting to purchase flood insurance could be a costly mistake! Most insurance policies that cover flooding take at least 30 days to go into effect. This means if your local weather forecaster is predicting a big rain event for you area in just a few days, don’t think you can just run out and buy flood insurance to be covered immediately. People who wait put themselves in a precarious situation, so it is best to get flood insurance coverage as soon as you move into your new home or when establishing a new business.

Every homeowner always wants to know whether or not they should purchase flood insurance for their home. The simple answer to this question is yes. Floods know no boundaries, no matter if you live in a high-risk area or not. Mother Nature can strike without warning and create devastating effects no matter where you are geographically located. In fact, most homeowners who make a flood insurance claim are usually the ones who live in low-risk areas or outside a flood plain. The type of flood insurance coverage you purchase depends on whether you live in a house, an apartment, or a condominium. Businesses are covered under a “General Property” policy, along with apartments, but each policy has its limits.

National Flood Insurance

FEMA sponsors the National Flood Insurance Program for communities who are willing to participate. This is one of the best routes to go if you and your neighbors are actively seeking flood insurance. The more people who get involved with this federal flood insurance program, the more it benefits everyone. When more people participate in this program, rates go down, and there is more money available for flood victims if a disaster were to strike. FEMA uses a flood insurance rate map to determine insurance rates for these communities, and to help individuals develop stronger buildings and homes for future events. Communities implement the building ordinances outlined by FEMA, and in return they receive flood insurance coverage for their homes and businesses. Not every community is involved with the National Flood Insurance Program. To find out if you community is participating in this federal flood insurance national program you can check out the Community Status book offered by FEMA.

Other Options

Even if your community is not involved in the National Flood Insurance Program, you can still obtain flood insurance through a private company or even the provider who is in charge of your homeowner’s policy. Remember, your homeowner’s policy will not cover “flood” damage, so you will have to purchase separate flood insurance coverage here. Timing is critical when it comes to purchasing a policy. If you wait to purchase a policy a few days before a flood strikes, then your home or business will not be covered. Most flood insurance policies take 30 days to go into effect; so don’t be left high and dry here. Of course it is always a good idea to shop around to find cheap flood insurance rates. Everyone wants to save money, but having the proper type of coverage is more important then saving a few bucks. The most important question to ask when selecting a provider is how quickly the provider can process a claim? A flood insurance company that is not well-off financially may have a tougher time resolving claims in a quick, efficient matter compared to a provider who is more prosperous. Most major flood insurance companies tend to write their insurance policies based on where you live in the United States. Homeowners can typically insure their home up to $250,000 and $100,000 for their possessions. Renters can have their personal possessions insured up to $100,000, and building owners are usually allowed up to 500,000. If you need additional coverage, then there are insurance companies who will cover more, but of course you will pay more for extended coverage. This is not always a bad thing. You can never have too much flood insurance to protect your interests. The most important thing is to have flood insurance so you don’t end up becoming another non-covered insurance statistic after a flood.

The odds may or may not be in your favor for flooding, but you’re not risk-free.  All homeowners are at risk for a flood in their community.

A flood can happen nearly anywhere, says the National Flood Insurance Program.  NFIP defines a flood as “a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties from:

• Overflow of inland or tidal waters; or
• Unusual and rapid accumulation or runoff of surface waters from any source; or
• Mudflow; or
• Collapse of subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above.”

One of the most dramatic examples of flooding resulted in the aftermath of Hurricane Katrina in 2005.  Levees broke in New Orleans leaving catastrophic ruin in the area. Every year, there are other examples, such as an overflowing Mississippi River, a series of severe thunderstorms in Florida, and mudslides in California.

What else causes floods? Summer’s relentlessly blue sky may create several picture-perfect backdrops for the family photo album, but the condition is also ideal for flooding.  The concept of arid weather producing a flood watch may seem contradictory, but a hard, parched earth resists a sudden outburst of rain.  The ground cannot quickly absorb the water, which then has nowhere to go.  A torrential rainstorm, therefore, can create floods in an area that has seen little rainfall in recent weeks.  Even as little as an inch of water can cause significant damage to your home.

OK, you recognize the danger, but don’t panic yet.  Your risk of flooding might be small or mighty depending on whether you live in a low-risk or high-risk flood zone.  You can determine your status by reviewing your community’s Flood Hazard Boundary Map or a Flood Insurance Rate Map (FIRM).  You can find these by consulting with your real estate agent. The website www.floodsmart.gov also allows you to search the Federal Emergency Management Agency’s (FEMA) maps to determine your zone.

These maps outline geographic areas, or flood zones, by their risk of flooding.  One of the low-risk zones, for example, may have only a one-percent chance of flooding over the lifetime of a 30-year mortgage on your house.  A high-risk area might have a 26 percent chance.

Determining your risk of flooding is an important step for deciding on the amount of flood insurance you want to protect your property.  Without the facts, you may be betting the farm that you are risk-free of flooding and lose.

The Mississippi and Missouri Rivers have had its share of terrible flooding events throughout history, and homeowners living along its banks will tell you that having flood insurance is a must. There have been several Great Floods along the Missouri River. The Great Flood of 1844 was one of the biggest floods in terms of the amount of water being discharged at one time. Statistics indicate that 625,000 cubic feet of water every second was being dispelled by this tremendous flood. In 1951 there was another horrible flood along the Missouri River that devastated Kansas City. The levee system in Kansas City was not built up to par to withstand the tremendous amount of water pressure exerted on it. As a result, the Kansas City stockyards were destroyed and the main international airport had to be built further away from the river. One of the biggest floods in the Midwest took place in 1993. Both the Mississippi and Missouri Rivers spilled out of their banks after months of heavy rain from April to August. By June, levee systems began to fail as the rain kept falling. Things only got worse in the month of July, and by August 1st the Mississippi River had crested almost 20 feet above flood level in St. Louis! It would not be until October that the waters would finally start to recede. Damages and loss of life were high to say the least. Almost 50 people lost their lives, and damages were estimated to be in the 15-20 billion dollar range. Over 10,000 homes were completely wiped out, and those without flood insurance found themselves leaving to pick up the broken pieces with no chance of starting over.

The Importance of Flood Insurance

The Great Flood of 1993 is a reminder for homeowners and business owners to get flood insurance coverage. You don’t have to live along the Mississippi or Missouri River banks in order to have a catastrophic flood. Every state in the United States has experienced some kind of major flooding event throughout its history. What many homeowners do not realize is that a major flood can happen to them. The importance of having home owner flood insurance cannot be overlooked in any way, shape, or form. Just ask the residents of Florida who have had their fair share of terrible flooding from hurricanes and tropical storms over the years. Florida flood insurance for residents in the “Sunshine State” is a necessity, and many communities have joined the National Flood Insurance Program sponsored by FEMA because of the high risk of flooding. Federal flood insurance is given to communities who follow stringent building regulations in order to reduce the catastrophic effects of a future flood. If your community is not involved in this national flood insurance policy program, then you can acquire your own flood insurance through a national or regional provider. Flood insurance rates will vary based on where you live, and whether or not you live in a high-risk flood area. However, many flood insurance providers work with homeowners to get them cheap flood insurance so their budgets are not overwhelmed. Typical flood insurance cost is about $350 a year, but this number tends to increase if you live along the coast and in other high-risk areas. Don’t wait for a big rain event or spring thaw to cause devastating flooding to your home. Give you and your family peace of mind by investing in home owner flood insurance before it is too late!

Florida, better known as “The Sunshine State”, has its fair share of tropical rainfall and also a large number of people who require flood insurance for their homes and businesses. Although, many tourists flock to this region because of the warm temperatures and gorgeous scenery, Florida is prone to flooding from a variety of sources including: heavy rain, overflowing rivers, and storm surge from tropical storms and hurricanes. Florida has very flat land, so water that accumulates has a tough time draining out. Riverbanks that overflow in this state spread water out over a very large area of land, leading to potential devastation to surrounding communities. Florida residents should always invest in some flood insurance coverage even if they don’t live right along the coastline. Since Florida is relatively narrow from north to south, tropical storms and hurricanes that lumber across the area tend not to weaken very rapidly, and can dump heavy amounts of rainfall over a widespread area. Florida also has a lot of swampland regions that can augment the disastrous effects of a flood, and these same moist land areas keep tropical cyclones refueled a bit longer compared to other types of terrain that may rip the storm apart much quicker.

FEMA Flood Insurance

Many communities in the state of Florida realize what a flood can do to their neighborhood, and some have experienced this terrible event firsthand. You don’t have to ask many Florida residents to wait for a hurricane to come and cause flooding. Residents are very aware that heavy spring and summertime thunderstorms can dump copious amounts of rain in just a short period of time, leading to flash flooding. As a result, many Florida communities have joined the National Flood Insurance Program sponsored by FEMA. By upholding strict building codes to reduce the devastating effects of flooding, residential communities receive federal flood insurance to protect their interests. This FEMA flood insurance program shows how communities can come together and fight back Mother Nature’s onslaught by working with one another.

Home owner Flood Insurance

If your community is not apart of FEMA’s national flood insurance policy, then you can locate a flood insurance company to take care of your needs. There are many national and regional flood insurance providers who can give you a flood insurance quote for your home or business. Florida flood insurance rates vary by provider and also vary based on exactly where you live. There is cheap flood insurance available, but you will have to shop around to find the provider you are seeking. In general, flood insurance is pretty affordable. Most annual premiums do not exceed $350, but this does go up if you live on the coast. Remember, having home flood insurance in Florida is vital when it comes to protecting your residence. Most policies take 30 days to go into effect; so don’t be caught off guard by a flood. Get protected with Florida flood insurance as soon as possible!

Flood insurance maps play a role in determining flood insurance rates for a given area. According to FEMA statistics, physical structures located in a 100-year flood plain area have almost a 26% chance of being hit by a devastating flood over the course of a 30-year mortgage. This alarming statistic indicates that homeowners living in high-risk areas should always invest in some flood insurance coverage. Even if you do not live along a riverbank or in another high-risk location you should still purchase flood insurance. Every state in the United States has experienced flooding at one time or another. Mountain regions are prone to spring run off, coastal areas can be lashed with gigantic storms, and all areas can be hit with heavy thunderstorms that result in flash flooding. Having home owner flood insurance should be a primary necessity no matter where you plan on residing. Unfortunately many homeowners overlook the threat and only think that a great flood will happen somewhere else, far away from them.

Flood Insurance Rate Map

A flood insurance rate map or FIRM is used by FEMA to establish insurance rates for homeowners and businesses in a particular geographical location. Many people do not understand the exact nature of a flood insurance rate map. Numerous individuals think that these FEMA flood insurance maps are used to show what areas are subject to flooding. If we were talking about a floodplain map then you would be correct. However, a flood insurance rate map outlines the regulatory “floodplain” based on estimated rainfall. In other words, flooding is estimated based what could happen or what has already occurred in the past. These maps focus primarily on creek and bayou areas, and not on poor drainage systems. FEMA uses these maps to determine flood insurance cost for a given area. Sometimes these flood insurance maps are altered due to huge reduction projects involving flood damage or more up to date studies that use modern data to get new flooding estimates, which redefine the floodplain. Although the maps sometimes change over time, the actual floodplain itself really hasn’t changed. It is our profound comprehension of the floodplain that alters how these maps are drawn out. If you want to view a FIRM of your area you can go to www.fema.gov and type in “map service center”. You can view a flood insurance map or even purchase one if you desire. Another good link is www.realtyvan.com/flood.html. This article by Jim VanErmen gives you informative links to FEMA’s federal flood program and information on national flood insurance, as well as, educational information on a FEMA flood insurance rate map, and how to read one. For more detailed information about a flood insurance rate map you can also visit www.tsarp.org/tsarp_over/rate_maps.html.

Whether you live along the coastlines, in the heartland’s prairies, or in an urban sprawl, you should review the possibility of buying flood insurance. Floods happen even in seemingly unlikely places. In fact, the Federal Emergency Management Agency (FEMA) says that flooding is America’s most prevalent natural disaster.

To receive compensation for damages due to flooding, you need homeowner flood insurance. You may even be required to buy flood insurance, particularly if you live in a high-risk area, such as along the coastline. Here are eight things you should know about buying flood insurance.

1. Flood insurance is available if your community is in the National Flood Insurance Program. More than 20,000 communities participate in NFIP, which provides federally backed insurance to homeowners and businesses. Check with your insurance agent or the Federal Emergency Management Agency (FEMA) to determine your community’s status in NFIP.
2. Structural damage to a house due to flooding is not covered by your homeowner’s insurance policy.
3. A standard flood policy covers such items as:
   • Damage to your home’s structure
   • Replacement (or repair) of your furnace, water heater, and air conditioner
   • Removal and clean-up of flood debris
   • Replacement or clean-up of floor surfaces.
4. For most residential homes, the coverage limit in a standard flood insurance policy is $250,000. Up to $100,000 is covered for the contents in most residential homes.
5. If your home contains pricey items that are worth much more than $100,000 you can buy additional coverage.
6. Coverage averages about $450 annually.
7. Your flood insurance coverage is the least of the following:
   • NFIP’s maximum amount of coverage available for your property type
   • The loan’s outstanding principal balance
   • The structure’s insurable value.
8. What about all the disaster assistance you hear about on the news reports? In order for a community to receive financial aid for flooding, the president must proclaim the community as a disaster area. Even if this happens, disaster assistance usually consists of low-interest loans, which you have to pay back eventually. With flood insurance, you receive compensation—no loans involved—faster than waiting for disaster assistance.
   For most people, their house is their most valuable and important asset. To fully protect your assets, you should consider buying flood insurance.

There was a time when those who lived in the floodplains of the United States spent the rainy season with a close eye on local weather. Particularly in years when a drought ruled the region, rain was a bittersweet affair, as flash floods wreaked havoc on unsuspecting residents. When disaster did strike, the only option they had was to apply for federal disaster aid. The National Flood Insurance Program (NFIP) has changed all of that.

The NFIP originated in 1968, during a time when a boom in real estate increased the potential for families to move into flood-prone areas. The National Flood Insurance Program, funded through the government, allowed property owners of flood-prone areas to buy insurance that would protect against flood losses, thereby cutting down on the need for federal aid.

The National Flood Insurance Program has its drawbacks. Individuals cannot simply purchase the insurance through their local insurance agent. Instead, a whole community has to commit to the program and its stringent requirements. A community under the influence of the NFIP is expected to work under the tutelage of the Federal Emergency Management Agency (FEMA) to adopt and maintain ordinances served to manage areas that are more flood-prone.

The wise homeowner will purchase flood insurance to go alongside their homeowners insurance, simply for peace of mind. Floods can occur anywhere, and are especially destructive in areas that aren’t flood-prone, since residents don’t usually prepare for the possibility. As little as one inch of water entering a home can cost upwards of $10,000 in materials and labor.

How much residents will pay for flood insurance through the National Flood Insurance Program depends on quite a few factors. Flood insurance agents will ask questions like:

Where is the property located?
Does your state have an emergency plan?
How old is the building you want to insure, and does it have a basement?
What is the approximate replacement cost of the building?
Is your home located in a special flood hazard area (SFHA)?

An SFHA is an area that has the greatest risk of flooding. Some areas don’t receive frequent flooding; for these areas, residents can often qualify for a preferred risk policy. For under $100 a year, people who live in low-flood risk zones can purchase flood insurance that will pay for or replace anything that is lost in a flood.

The National Flood Insurance Program helps communities not only provide for residents in the case of flooding, it also allows them to take action to minimize the chance of their area experiencing flooding. And with an uncertain climactic future, everyone shares in the responsibility of learning about the dangers of flooding and how to prevent it, or at the very least, how to control the impact that floods cause in the community.

Homeowners all across the United States should invest in flood insurance, but having some knowledge about the subject beforehand will help you when it comes time to purchase a policy. Many homeowners are not aware that there is a high probability that their home will be exposed to a flood at some point during their mortgage. Statistics indicate that residents are 26 times more likely to endure the hardships of a damaging flood compared to having their homes set on fire. This frightening statistic gives homeowners all the more reason to obtain some kind of flood insurance coverage to protect their livelihoods. Finding the right flood insurance company is important, and in this paper we will outline some tips on what to look for and how to determine if flood insurance is right for you.

Risk Assessment

It doesn’t matter whether you live along the coastline, near a river, or outside a flood zone, floods can strike anywhere, anytime. Homeowners are always under the impression that if they don’t live in a designated flood plain then their home is safe from Mother Nature’s fury. Statistics tell another story. Almost one-third of flood insurance claims come from homeowners who are not residing in a high-risk area, giving credence to the fact that floods can occur almost anywhere. Of course doing research to access your risk is always a wise idea. Homeowners can also go to www.floodsmart.gov to obtain a list of flood insurance rates from different companies, as well as, agents stationed around your area.

There Are Limits

Homeowners should always know the limits of their flood insurance policy. For example, The National Flood Insurance Program sponsored by FEMA covers up to 250,000 for your home, and an additional 100,000 for your prized possessions within the home. However, this coverage may not be enough for some people, so you might have to obtain home owner flood insurance through another company. You can purchase flood insurance through the same provider who is in charge of your homeowner’s policy or select a private company who deals with these kinds of policies. State Farm and Allstate are a few well-known providers, but always shop around for the best coverage and rates before making a final decision. If you live along the coastline, then having flood insurance is a must. In fact, if you are thinking about living along the U.S. coast, you will probably not even be able to purchase a home without having some kind of flood insurance coverage.

Don’t Rely On Fema

Many people feel that if their community has a disaster bestowed upon them, then FEMA will bail them out. Although, federally declared disaster areas are subject to federal aid, the government only provides a low-cost loan to the homeowner. Residents are required to pay this money back to government after they purchase flood insurance, so it’s like adding another mortgage onto your home. The best route to go is to have your own personal flood insurance coverage in order to avoid the hassles of dealing with government funding for disaster areas.

Residents living along the U.S. coastline should always invest in flood insurance for their properties. Hurricane season takes place June through November along the Atlantic and Gulf Coast states, and these monstrous storms can affect residents living in Texas all the way up to Maine. Pacific landfalls typically affect Mexico, so we will primarily focus on the eastern seaboard and Gulf of Mexico here. Tropical storms, along with hurricanes, cost Americans millions of dollars each year, and during some seasons this cost can escalate well above this amount. Not having home flood insurance only aggravates these costs and causes more pain to homeowners once the storm is over. In fact Tropical Storm Allison, which devastated the upper Texas coast back in 2001, was responsible for over $5 billion in damage alone. This was the costliest tropical storm to go down in the history books in the United States. Twenty-three people died in Texas alone, and 41 people died altogether across Texas, Louisiana, Mississippi, Florida, Virginia, and Pennsylvania before all was said and done. What made Allison so deadly? Flooding. Houston, Texas received a record 35 inches of rain in just a few days and many people drowned as a result. Besides the horrific deaths in this storm, many people lost their homes because of the tremendous amount of rain Allison dumped in such a short period of time. This resulted in severe flash flooding, and those who did not have flood insurance were certainly taken off guard once the storm was over.

Flood Insurance Along The Coast

If you already live or are planning to live along the U.S. coastline, then home owner flood insurance should be a necessity. FEMA offers a National Flood Insurance Program that gives participating communities federal flood insurance who adhere to flood mitigation policies outlined by FEMA. By using a FEMA flood insurance rate map to determine insurance costs for a given area, this national flood insurance policy is critical for coastal residents living in Florida and other states that have a higher than average frequency of tropical storms and hurricanes. In fact, most Florida flood insurance falls under the National Flood Insurance Program with 95% of the communities participating in this voluntary service. Over 80% of Florida’s 18 million plus residents reside along the coastline, making FEMA flood insurance a basic necessity to living. Other coastal cities are now following suit by joining the National Flood Insurance Program to protect their lives and property.

Exceptions In Coastal Areas

Some areas along the Atlantic and Gulf coasts may not be eligible for the federal flood insurance national program. Areas, such as the outer banks of North Carolina and a few select spots in Florida’s Panhandle may be left out in the cold when it comes to federal flood insurance. The U.S. government passed the Coastal Barrier Resources Act in order to preserve wildlife in sensitive areas along the coast. People can still build in these areas, but the government does not provide flood insurance in order to deter construction in these fragile spots. If you are living or are planning to live in one of these designated areas, then be prepared to pay quite a bit more for flood insurance. It is always best to obtain a flood insurance quote from a provider so you will know how much you will be paying when you live in these areas. Cheap flood insurance will be hard to come by here, but there are providers out there who are willing to offer flood insurance in these sensitive ecological preserves.

Millions of Americans are not aware of how important it is to have flood insurance coverage. The indestructible attitude of “that can never happen to me” or “it only happens to the guy next door” is all too prevalent when it comes to floods and their devastating effects on our lives. Purchasing flood insurance may be one of the wisest investments you ever make, no matter where you live. You don’t have to reside along the U.S. coastline or in a high-risk area to be exposed to a catastrophic flood. Every state in the United States has experienced severe flooding at one time or another, so buying flood insurance is not only an option, but should be considered a necessity for individuals. We will now outline some commonly asked questions about flood insurance coverage in order to help you choose the best policy for your home or business.

Does My Homeowner’s Insurance Cover Floods?

The answer to this question is yes and no. It depends on how you define a “flood”. Most homeowner insurance policies cover “water damage” but not flood damage. People often get these two concepts confused. Flood damage pertains to a body of water that rises and overflows onto land that is typically dry. Examples of flood damage include: rivers and creeks, which overflow their banks and destroy homes, a heavy rain event that results in standing water that enters your home, or a mudslide that charges down a hill toward your home because of flash flooding. Water damage has more to do with damage that results from water that has not reached the ground first. Examples of this include: a broken pipeline or roof damage that allows rainwater to seep in, or a backed up toilet. It is important to realize the difference between the two since only flood insurance covers flood damage and homeowner’s insurance will only cover water damage. Many homeowners and businesses are very surprised to find out that their homeowner’s policy will not cover certain “flood related” damages after a storm has passed. Don’t be caught off guard. Always purchase flood insurance coverage for your home or business.

What If I Can’t Afford Home Flood insurance?

Don’t worry. There is a common myth that home owner flood insurance is not affordable, but in reality the opposite is true. Flood insurance cost is pretty reasonable, and usually a flood insurance company will work with you to get you the best coverage within your budget requirements. All you have to do is contact a home flood insurance provider in order to obtain a flood insurance quote. Flood insurance rates vary among providers, but there is cheap flood insurance available for low-income families. Just shop around and find the best rate for your needs.

What Is The National Flood Insurance Program?

The National Flood Insurance Program is a special program offered by FEMA to participating communities. This program is completely optional, but many American communities are now taking an active role in signing up. Communities will be required to adhere to specific building ordinances, and in return FEMA will provide them with federal flood insurance. Having national flood insurance is the best way to go since it shows a large-scale effort among individuals to combat the devastation associated with flooding. If your community is not covered by this national flood insurance policy, then you can obtain your own personal flood insurance by selecting a provider of your choice.

Did you know…?

Outside of fire, flooding is the most widespread environmental disaster worldwide. Some of the environmental causes of flooding are caused by storms, melting snow, hurricanes, and water backup due to insufficient or drainage systems filled to capacity, dam or levee failure. And the list goes on.

A standard homeowner’s policy will not cover damages caused by flooding. You must have flood insurance from an insurer that writes for the National Flood Insurance Program. If your community belongs to the NFIP (National Flood Insurance Program) floodplain management program, you should be eligible to buy the coverage no matter if your flood risk is low, medium or high. The only people who may have trouble finding flood coverage are residents of “coastal barrier resource system” areas and communities that do not participate in NFIPs programs. Flood insurance is also available to renters, condominium owners, and co-op owners.

If your home gets flooded, there is a possibility that you can lose everything.  Each year thousands of family experience financial ruins because they didn’t have the proper insurance when flooding occurred.
Most people assume that a basic homeowner’s policy covers damage due to flooding, but in actuality basic homeowners insurance will not cover your flood damage. You need flood insurance. Flood insurance is a special policy backed by the federal government, with cooperation from local communities and private insurance companies.

Thousands of insurance companies, possibly the company that handles your homeowners or auto insurance, write and service flood insurance policies for the government, which finances the program through premiums.

Usually, the cost of flood insurance is inexpensive.  Surprisingly, even though flood insurance is cheap most people neglect to purchase flood insurance. Reports show that only about one-quarter of the homes in areas that are most likely to get flooded has flood insurance according to the Federal Insurance Administration (FIA). In those areas, flooding is 26 times more likely to occur than a fire during the course of thirty year mortgage.

More than 19,000 communities have agreed to stricter zoning and building measures to control floods, according to the Federal Emergency Management Agency (FEMA). The residents in these communities are permitted to buy flood insurance through the National Flood Insurance Program (NFIP), a program FEMA has to offer.

A flood can cause major destruction to your home and your property.  Overall, this could financially destroy you and your family.  It could take many years to recover from a flood if you are uninsured.  Flood insurance can protect you against a humungous financial setback. Flood insurance can offer coverage that will protect your house, business and possessions.

If you are a homeowner and don’t have flood insurance, you may want to start thinking about purchasing a policy as soon as you can. Floods are an inevitable part of Mother Nature’s cycle, and every U.S. state has experienced some kind of flooding throughout history. There is nothing we can do to stop flood events in the future, but protecting your home or business with flood insurance coverage will help you get back on your feet once the crisis is over. Many communities throughout the United States have experienced or will experience some kind of flooding event. Whether it is heavy rain or melting snow, the moving force of water is too much to be taken lightly. In fact, it only takes about six inches of rapidly moving water to knock people off their feet!  Cars and other vehicles can be swept away in only about two feet of moving water. Just think what this kind of force could do your home or business! Having flood insurance may be the only thing that protects your property.

Know The Difference

Before we probe a bit more into home owner flood insurance, let’s talk about some flooding tips. It is always good to have some knowledge about weather terminology. Residents should always know the difference between a flash flood watch and a flash flood warning. A flash flood watch means there is the potential for flash flooding in your area. A flash flood warning means flash flooding is occurring, and you should act immediately! Many people have died during flash flood events when driving their car. Under no circumstances should you ever drive your car through a flooded street. You have no way of knowing the actual depth of the water, and the risks associated with crossing are too great to take on. As the old saying goes “turn around, don’t drown!” This is the best advice to heed if you are out on the road during a flash flood event. Listen to the radio at home. If you are ordered to evacuate, then do so right away. The last thing you want is to get stranded inside your home with all access roads blocked due to high water.

Protect Your Interests

Always obtain a flood insurance quote before obtaining coverage for your home or business. Flood insurance cost will vary. Different providers have different rates depending upon where you live. Obtaining cheap flood insurance is not impossible. There are many flood insurance providers who offer reasonable rates and good policies to protect your home and indoor possessions. You can also go to FEMA’s (www.fema.gov) website for information on the National Flood Insurance Program. Many communities throughout the United States participate in this federal flood insurance program to obtain flood insurance through the government. Communities have to follow government regulations pertaining to building codes so they are better prepared the next time a flood hits them. By having stronger buildings, there is less likely to be serious damage and personal loss. When communities follow these guidelines they receive federal flood insurance in exchange. FEMA typically sets insurance rates for a community by using a flood insurance rate map (FIRM), which outline the regulatory “floodplain”. This FEMA flood insurance map has flooding estimates, which are based on different rainfall amounts for a given area. In other words, insurance rates are based on projected flooding for a certain amount of rainfall. The maps focus on creeks and bayou areas only and not on poor drainage. A flood insurance company can use a FIRM to determine if homes or properties are located in high risk areas, and community leaders can also use these maps when going about floodplain management and redevelopment. Don’t wait until it’s too late! Know what to do when a flood comes and always have flood insurance no matter where you live.

Many communities throughout the United States participate in the National Flood Insurance Program (NFIP) offered by The Mitigation Division of FEMA (Federal Emergency Management Agency). According to recent statistics, almost 20,000 communities are currently involved in this national flood insurance plan, and this number continues to grow. The reason is simple: flooding is and will continue to be a major problem in the future for residents and commercial business owners alike. History has taught us some painful lessons about the power of water and what it can do to our homes and businesses. Just ask the residents of Johnstown Pennsylvania back in May of 1889.

A Sad Day

One of the worst flooding disasters in the United States occurred when the South Fork Dam failed after days of torrential rain. Traveling at over 40mph, over 20 millions tons of water rushed down into Johnstown picking up trees, houses, livestock, and copious amounts of debris along the way. Johnstown residents were taken by surprise, and when all was said and done, over 2,200 people had been killed. Damage estimates fell within the $17 million area, an astounding rate during that time period. There was no National Flood Insurance Program available to residents back then, so federal assistance to rebuild was not available. Luckily the Red Cross and European countries were able to contribute to the reconstruction of Johnstown.

Flood Insurance Coverage

Flood insurance is a necessity no matter where you live. Many people feel like they don’t have to purchase home flood insurance or FEMA flood insurance because they feel relatively safe and believe that the chances of a flood hitting their residence is extremely low. Statistics prove otherwise. According to FEMA, your home has a 26% likelihood of sustaining some kind of damage from a flood when you purchase a 30-year mortgage. Compare this to the chances of your home catching on fire (9%) during the same time period and you will quickly begin to see why more and more homeowners are now obtaining flood insurance coverage.

Besides apathy, another reason why people claim they do not purchase flood insurance is because it costs too much. This is not true. Believe it or not, home flood insurance is more affordable than you think, and there are many cheap flood insurance programs available from insurance providers. Just contact your provider for a flood insurance quote.

Flood Insurance Rate Maps

Communities all across the United States are now actively involved in the National Flood Insurance Program. FEMA outlines “Special Flood Hazard Areas” or (SFHA’s) by using a flood insurance rate map which delineates the regulatory floodplain for communities. These maps do not show what areas are more flood prone compared to other areas, but rather display an estimated flood threat based on a certain amount of rainfall that may fall in a given area. This FEMA flood insurance map is specific to creeks and bayous overflowing their banks, and not from flooding rains that accumulate because of poor drainage systems. This federal flood insurance national program is completely voluntary, but the rewards that come with joining are well worth it. When communities join the National Flood Insurance Program they are obligated to enforce floodplain management regulations to reduce flood damage from future events. When communities abide by these regulations, the NFIP provides federal flood insurance for residents, renters, and business owners who reside in these communities. Annual statistics show that buildings, which adhere to the National Flood Insurance Program’s building codes, sustain 80% less damage than buildings that have not enforced these conditions. You can find out if your community is currently participating in the National Flood Insurance Program by checking the Community Status Book offered by FEMA.

An ocean view may be a priority in purchasing your next home, but you’re probably also buying in a high-risk flooding zone, which means a pricey rate for flood insurance. There may be a way, however, to reduce the price tag.

Before you start celebrating, take a look at how the rates for flood insurance are developed. The price of flood insurance is based on the Flood Rate Maps developed by the Federal Emergency Management Agency (FEMA). The National Flood Insurance Program (NFIP), which federally backs flood insurance, then uses these maps to assign the type of risk (low, moderate, or high) to your community. For example, a home in a coastal area probably has a high risk. A similar house in an arid section of the country has a low risk.

In fact, structures in a high-risk flood zone have a 26 percent chance of damage from floods. FEMA also estimates that a high-risk home is three times more likely to be damaged by a flood than a fire.

To offset the toll of a flooded home, flood insurance is available. Not all insurance policies and circumstances, however, are alike, and there are factors that can help you help find a price break.
Take a look at the following:

1. One way to save on your flood insurance rate may be through your insurance agent. For example, many licensed agents selling flood insurance in Florida can offer a discounted price. This is because of the state’s laws on rebates. In 2006, one Florida insurer was offering a 12 percent discount on all plans.
2. Your agent may also suggest ways to upgrade your home against hurricane and flood damage, such as adding hurricane shutters. These improvements could make your home eligible for discounts as well.
3. If you intend to build along the coastline, the federal flood program might consider the area too risky and not cover your insurance. In order to obtain a mortgage, therefore, you’ll have to hunt for flood insurance at exorbitant rates. With some planning, however, you can build a home that qualifies for a Conditional Letter of Map Amendment. An example of the type of specification to use in a CLOMA letter is adding elevation to your home. When you receive a CLOMA letter, your home will be eligible for the federally backed program.
4. Talk to your community leaders about making improvements. For example, some Florida cities improved their municipal drainage programs. Better drainage means the risk for flooding goes down as well as your flood insurance rates.Living along the coast or other high-risk areas adds an immeasurable quality to your life. But, if you consider the arrangement in cold, hard cash, you’ve invested a lot for the pleasure of spectacular scenery. Flood insurance can help you protect your investment, and, with a little extra work, you can save some money on your policy.