305,000 Residents In The 28 Declared Counties Prepared For Aftermath Of Floods
Release Date: July 3, 2001
Release Number: 1379-54
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Houston, TX -- When Tropical Storm Allison hit Texas in early June, 305,000 families in the disaster declared counties had coverage for flood damages. They were the families who had purchased flood insurance before the storms and floods struck.
"We want to commend those families," said Scott Wells, federal coordinating officer for the Federal Emergency Management Agency (FEMA). "They are the ones who recognized the importance of being prepared and took the right steps to protect themselves. We would like more families to take the same steps."
As of June 29, the National Flood Insurance Program (NFIP) has received 23,428 claims of losses filed in the aftermath of Allison's wrath. This is more than three times the amount filed at the closing date of the 1994 Texas floods.
Buying a national flood insurance policy is the first line of defense against economic losses caused by flooding. Anyone can buy flood insurance if his or her community participates in the NFIP. Most communities in the Southeast Texas affected areas do.
Also, you don't have to be in a high-risk area to buy flood insurance. In fact, 25 percent of damages occur outside of high-risk areas. "The one thing we know for sure about floods is - if your area flooded during this storm, it's likely to flood again," Wells said.
"Year in and year out, flooding is the leading cause of property loss from natural disasters in this country," said Richard Boltz, state coordinating officer for the Division of Emergency Management (DEM), Texas Department of Public Safety. "But, all too often, people learn after the fact that protection against flood loss is not part of their normal homeowners insurance policy. Flood insurance will pay, with or without a declaration."
Homeowners, business owners and renters can buy federally backed flood insurance. For a single-family home, you may purchase flood insurance coverage up to $250,000 on the structure and up to $100,000 on the contents.
If you are a business owner, the maximum is $500,000 on the building and another $500,000 on contents. Renters may purchase up to $100,000 worth of coverage for personal belongings.
Even in a declared disaster, a low-interest loan from the U.S. Small Business Administration (SBA) is the primary form of recovery assistance for homeowners, renters and businesses. The yearly premium for a flood insurance policy is cheaper than the monthly payment for a loan.
"You can insure your home and all its contents against flooding for less than it costs to insure your car," said Boltz.
Important features of the National Flood Insurance Program are:
- Most everyone can, and should, have flood insurance. Even if you don't live in a high-risk flood zone, you can purchase flood insurance if your community participates in the NFIP. Anyone can be flooded. More than 90 percent of all presidentially declared disasters include flooding.
- Flood damage is not covered by homeowner's insurance policies. You can protect your home, business, and belongings with flood insurance. Flood insurance can be purchased through your local insurance agent. The NFIP is sold through private insurance companies and is backed by the federal government.
- You can insure your home for up to $250,000 for the building and up to $100,000 for the contents.
- Contents coverage is separate. It is not automatically included with building coverage. Ask your agent. Renters can insure their belongings, too.
- Flood insurance pays even when no disaster is declared. Statistically, federal disaster declarations are issued in less than 50 percent of flooding incidents. An NFIP policy will pay for flood damage whether or not there is a federal disaster declaration.
- Flood insurance is affordable. The average flood insurance policy costs a little more than $300 a year for about $100,000 of coverage.
- You can purchase flood coverage at any time, but there is usually a 30-day waiting period after you have applied and paid the premium before the policy becomes effective.
For information, call the National Flood Insurance Program, toll-free, at 1-800-720-1090. Homeowners, renters and business owners can call for the name of local agents who handle flood insurance.
Last Modified: Friday, 17-Oct-2003 16:11:47