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Flood Insurance

Why Do I Need Flood Insurance? Why do I need flood insurance? I don’t live near water.

People who live near water are not the only ones

who experience flooding. Floods move, and can

spread for miles. They can have strong currents

that, in a few moments, can sweep away

everything, leaving a thick residue of mud and

debris behind.

Homes, even those on high

ground, may be many miles from a river, lake,

or other body of water, and still have damage

because of groundwater flooding or ponding.

It’s not just the high-risk areas that are flooded.

Between 20 and 25 percent of flood insurance

claims come from a medium or low flood-risk

Doesn’t my homeowner’s insurance cover flood damage?

Typically, homeowners’ insurance policies do not cover such things as flooding, landslides, and earthquakes. A special policy needed to cover damage from these as well as other special hazards. Check with your insurance agent to find out what is and is not covered in your homeowner’s policy.

Won’t the federal government assist me with flood damages?

Yes, but probably not quite the way you would expect. Federal disaster assistance is only available if the president of the United States declares a disaster. When available, federal assistance is often in the form of a loan – repayable in full – with interest! In contrast, if you have a flood insurance policy, you can be reimbursed for all your covered losses, even if the president does not declare a disaster.

Isn’t flood insurance expensive?

It depends on your perspective. Consider the alternatives. Paying back a $50,000 disaster loan, for example, will cost an average of $300 a month – for approximately 20 years, while the average flood insurance premium is a little over $300 per year for an average of $100,000 of coverage. For most people, a home is by far their most valuable possession. Why risk the financial loss from flood damage when you can
protect it with flood insurance.

Who can purchase flood insurance?

Coverage is available for residential and commercial buildings and contents, and can be purchased by renters:

– Up to $250,000 for single-family, two-to four family, and other residential buildings.
– Up to $100,000 for content coverage for residences for owners and/or renters.