Anyone can buy flood insurance as long as the property is located in a community that participates in the National Flood Insurance Program. Homes, condos, apartments, and business structures are all eligible. Even if you've had previous flooding, you can still buy flood insurance. Renters may purchase flood insurance for their possessions. Premiums for flood insurance are set by the U.S. government. Your rate is the same from any insurer.
As flooding becomes a more common occurrence, property owners need to face the facts. Floods can occur at any time of the year, in any part of the country, and at any time of the day or night. Here are the facts:
- Floods and flash floods happen in all 50 states.
- Everyone lives in a flood zone.
- Most homeowners insurance does not cover flood damage.
- Just an inch of water can cause costly damage to your property.
- Flash floods often bring walls of water 10 to 20 feet high.
- A car can easily be carried away by just two feet of floodwater.
- Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
- New land development can increase flood risk, especially if the construction changes natural runoff paths.
- Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
- If you live in a low-to-moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $119 a year, including coverage for your property's contents.
- You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program.
- It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
- Last year, one-third of all claims paid by the NFIP were for policies in low-risk communities.
- The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion.
- When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%.
- The NFIP awarded over $16 billion in flood claims in 2005.
- Since 1978, the NFIP has paid $31.4 billion for flood insurance claims and related costs (as of 3/31/06).
- Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S.
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