Spring Floods Call Attention to National Flood Insurance
Release Date: March 26, 2001
Release Number: 1363-02
» More Information on Arkansas Severe Storms & Flooding
Little Rock, AR -- With the advent of the spring floods and the presidential declaration of 13 Arkansas counties for Public Assistance relief for infrastructure, attention turns to the National Flood Insurance Program (NFIP) for homeowners.
Top 10 Facts Every Consumer Needs to Know About NFIP
- Everybody is at risk.
- Flood damage is not covered by homeowners' insurance.
- You can buy flood insurance no matter what your flood risk is if your community participates in he NFIP.
- There is a low-cost policy for homes in low- to moderate-risk areas.
- Flood insurance is affordable.
- Flood insurance is easy to get.
- Contents coverage is separate, so renters can insure their belongings too.
- Up to $1 million of flood insurance coverage is available for non-residential buildings and contents.
- There is usually a 30-day waiting period before the coverage goes into effect.
- Federal disaster assistance is not the answer. Over 70 percent of flooding events are not declared federal disasters.
- Everybody is at risk.
- You don't need to live near water to be flooded.
- Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems, dam or levee failure, etc. An example is when debris may result in backing up water flow.
- Flood damage is not covered by homeowners insurance.
- You can protect your home, business, and belongings with flood insurance from the National Flood Insurance Program.
- You can insure your home with flood insurance for up to $250,000 for the building and $100,000 for your contents.
- You can buy flood insurance no matter what your flood risk is.
- It doesn't matter whether your flood risk is high, medium, or low, you can buy flood insurance as long as your community participates in the National Flood Insurance Program.
- And, it's a good idea to buy even in low or moderate risk areas: almost 25 percent of all flood insurance claims come from low- to moderate-risk areas.
- There is a low-cost policy for homes in low- to moderate-risk areas.
- The Preferred Risk Policy is available for just over $100 a year.
- You can buy up to $250,000 of coverage for your home and $60,000 of coverage for your contents.
- Flood insurance is affordable.
- The average flood insurance policy costs a little more than $337 a year for about $100,000 of coverage.
- In comparison, a home loan for repairs after a declared disaster can cost more than $360 a month for $50,000 over 20 years.
- Flood insurance is easy to get.
- You can buy NFIP flood insurance from private insurance companies and agents; call yours today!
- You may be able to purchase flood insurance with a credit card.
- Contents coverage is separate, so renters can insure their belongings too.
- Up to $100,000 contents coverage is available for homeowners and renters.
- Whether you rent or own your home or business, make sure to ask your insurance agent about contents coverage. It is not automatically included with the building coverage.
- Up to $1 million of flood insurance coverage is available for non-residential buildings and contents.
- Up to $500,000 of coverage is available for non-residential buildings.
- Up to $500,000 of coverage is available for the contents of non-residential buildings.
- There is usually a 30-day waiting period before the coverage goes into effect.
- Plan ahead so you're not caught without flood insurance when a flood threatens your home or business.
- Plan ahead so you're not caught without flood insurance when a flood threatens your home or business.
- Federal disaster assistance is not the answer.
- Federal disaster assistance is only available if the President declares a disaster.
- More than 90 percent of all disasters in the United States are not Presidentially declared.
- Flood insurance pays even if a disaster is not declared.
- Disaster assistance normally comes as a loan. Grants are only for survivor's unmet personal needs, not as a substitute for property insurance and are only available if survivor does not qualify for a loan.
Last Modified: Monday, 27-Oct-2003 13:28:36