Disaster Officials Urge Texans To Buy Flood Insurance
Part of a series on Hurricane Preparedness in Texas
Release Date: April 4, 2006
Release Number: 1606-182
» More Information on Texas Hurricane Rita
AUSTIN, Texas -- One of the most important things Texas residents can do to protect their homes, businesses and personal property is buy flood insurance, according to State and federal disaster recovery officials.
Flooding is by far the most common type of natural disaster. There is a 9 percent chance of fire-related losses in the life of a 30-year mortgage, but a 26 percent chance of flood-related losses, according to official statistics.
"It's not just high risk areas that flood," said Federal Coordinating Officer Sandy Coachman of the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA). "Between 20 and 25 percent of flood insurance claims come from medium or low flood-risk areas.
"Time after time in flooding events, citizens are unable to recover fully because they were not properly insured. Assess your vulnerabilities and take steps to protect your house and its contents. One way to do that is to visit www.floodsmart.gov," Coachman said.
The National Flood Insurance Program (NFIP), administered by FEMA, has established that Web site to enable anyone to assess flood vulnerabilities, approximate costs for structure and contents insurance, and find nearby agents who sell NFIP policies.
"Nearly half a million Texans registered for federal individual assistance from Hurricane Rita within the past seven months," said State Recovery Administrator Duke Mazurek of the Texas Governor's Division of Emergency Management. "Many of those claimed losses because they had no insurance.
"An important fact about insurance policies is that flood damage is not covered by homeowner's insurance," said Mazurek. "Flood insurance must be bought additionally, with separate policies for structures and contents. Compared to typical disaster relief, flood insurance is a bargain."
Federal disaster assistance loans through the U.S. Small Business Administration to repair property must be paid back with interest. At current rates, a $100,000 loan may cost about $500 a month. By contrast, a $100,000 flood insurance policy costs only about $36 a month.
"Flood insurance policies do not take effect until 30 days after purchase, so it's important to buy coverage now, before the start of the 2006 hurricane season," said Coachman. "There is no waiting period if a policy is purchased at a mortgage closing."
The Web site also has additional information about flood insurance, the National Flood Insurance Program (NFIP) and other flood related issues. Everyone is encouraged to extend their visit to www.floodsmart.gov to learn more about flooding and how to protect themselves from flooding.
Even though flood insurance may not restore property and possessions to pre-disaster conditions, it is a best first step to recovering from a flood, even a small one that does not merit a presidential disaster declaration.
FEMA manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, works with state and local emergency managers, and manages the National Flood Insurance Program. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Tuesday, 16-May-2006 11:09:36