DO YOU NEED FLOOD INSURANCE?

Flooding is not covered by a standard homeowners insurance policy.

To determine if you need flood insurance, ask your insurance professional, mortgage company or neighbors about the flood history in your area. If there is a potential for flooding, you should consider purchasing a policy that covers the structure and your personal belongings.

Flood insurance can be purchased from an insurance agent or company under contract with the Federal Insurance Administration (FIA), part of the Federal Emergency Management Agency (FEMA). Flood insurance is only available where the local government has adopted adequate flood plain management regulations under the National Flood Insurance Program (NFIP). Flood insurance is available even if you are not located in a flood zone.

Most Americans live or work in areas that have some risk of flooding. Flooding is caused by a number of conditions including hurricanes and severe storms, overflowing rivers or tidal waters, heavy rain, mudslides, levee failure and snowmelt. About 90 percent of natural disasters involve flooding in one way or another. Unfortunately, many people still don't understand the importance of flood insurance. An overwhelming majority of residents who were flood victims in 1997 were not covered for their flood exposure.

• Homeowners insurance does not cover flood damage. Only flood insurance will cover your losses in the event of a flood. Insurance for homeowners, renters and businesses is available through the federal government.
• Floods and flash floods occur within all 50 states. Almost everyone is vulnerable to floods, no matter where they live. In fact, the National Flood Insurance Program says that one out of four flood claims come from outside flood risk areas.
• Flood insurance policies can be purchased from licensed brokers. Flood insurance is available through the Federal Emergency Management Agency's (FEMA) National Flood Insurance Program (NFIP). It is sold via the more than 80 participating insurance companies that write and service policies through a special arrangement with the Federal Insurance Association (FIA), as well as through thousands of insurance agents nationwide. Contact your insurance agent for details or call the NFIP at 1-800-638-6620.
• Don't wait to obtain a flood insurance policy. If your community participates in the National Flood Insurance Program, you are eligible to purchase flood insurance through the NFIP. Remember that there is a 30-day waiting period before your coverage takes effect, so don't delay.
• Flood insurance coverage. The maximum coverage amounts are $250,000 for a home and $100,000 for its contents. Maximum coverage for businesses is $500,000 for buildings and $500,00 for contents. Separate deductibles apply for building and contents. Flood insurance does not cover personal property located in a basement.
• Disaster aid is only available in federally declared disaster areas. Before most forms of federal disaster assistance are offered, the President must declare the area a major disaster -- and less than 10% of all disasters are declared by the President. Flood insurance claims are paid even if the President does not declare a disaster.
• Relief from floods primarily comes in the form of loans. If your area is declared a disaster, no-interest or low interest loans are usually made available by the federal government. But these loans are just that - loans -- and must be paid back. Obtaining a flood insurance policy is the only way to truly protect yourself from the cost of flooding disasters.