It’s snowing…yet again!!! You are probably dreaming about Spring right now, aren’t you? Well, before it gets here, up to 8 more inches of snow is predicted to fall on top of our already snow-covered ground! Couple all that melting snow with typical Springtime rain and this year’s thaw is going to bring about a significant possibility of flooding. It is time to start thinking about is whether or not we are adequately protected…
Flood insurance can be confusing. It is also typically one of those things we don’t think about until after disaster strikes. According to the NFIP website, all 50 states have experienced floods or flash floods at some point over the past 5 years. Just a few inches of water from a flood can cause tens of thousands of dollars in damage. You don’t want to discover that ground water isn’t covered by your regular homeowners’ policy after the water starts rising in your basement. So, do you know if you are adequately protected against flooding?
The National Flood Insurance Program (NFIP) website provides a good amount of information to help explain this type of insurance, as well as dispel common myths and misconceptions. These are some of the most common questions as addressed by the site:
“In 1968, Congress created the National Flood Insurance Program (NFIP) to help provide a means for property owners to financially protect themselves. The NFIP offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP.“
“Not necessarily. Federal disaster assistance typically comes in the form of a low interest loan to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the president formally declares a disaster and must be repaid along with any existing mortgage.”
“No. Flood damage is not typically covered by a homeowners’ insurance policy.”
“Even though flood insurance isn’t federally required, anyone can be financially vulnerable to floods. In fact, people outside of mapped high-risk flood areas file nearly 25% of all National Flood Insurance Program flood insurance claims and receive one-third of Federal Disaster Assistance for flooding. When it’s available, disaster assistance is typically a loan you must repay with interest. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, residential premiums in moderate- to low-risk areas start as low as $57 per year for Contents Only coverage ($57 annual premium provides $8,000 in contents coverage).”
While The National Flood Insurance Program website provides answers to these questions (among others), you should still consider contacting your agent to be sure you are sufficiently covered. Then you can get back to dreaming about Spring without any worries about the thaw!