Most homeowners policies do not cover floods. The most serious mistake people can make is to think it won't happen to them because they don't live in a flood plain. Almost everyone lives in either a low, moderate or high-risk flood plain. Heavy rain or snow melt can create a flood on any type of property. Depending on federal disaster relief to cover damages from a flood is also unwise. Federal disasters are declared in fewer than half the cases of flooding. The Federal Government mostly provides loans that have to be repaid with interest, whereas flood insurance covers most of the damage for a fixed price.
Anyone can buy flood insurance, even if the property has been flooded before, provided you live in a community that participates in the NFIP (National Flood Insurance Program). There's usually a 30-day waiting period before new and modified policies go into effect, which means you can't buy a policy and have it be in effect the next day.
Flood insurance will pay for flood repairs, removing mud and debris, and replacing personal belongings and business inventories.
Did you know?
- Floods occur six times more frequently than fires.
- Ninety percent of flood disasters do not receive federal disaster aid.
- The average federal disaster payment is only $2,500 and the largest grant is just $12,500.
- Between 25 and 30 percent of National Flood Insurance Program claims come from outside high-risk flood areas.
If you're interested in more information regarding flood insurance, please call our office.