National Flood Insurance Program
Release Date: July 2, 2002
Release Number: 1421-12a
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- The National Flood Insurance Program (NFIP) is a federal program
enabling property owners in participating communities to purchase insurance protection
against losses from flooding.
- The NFIP is administered by the Federal Emergency Management
Agency (FEMA). Flood damage is not covered by standard homeowners insurance
policies. Flood insurance can be purchased through your local insurance
agent. NFIP is sold through private insurance companies and backed by
the federal government.
- Most everyone can and should have flood insurance. Anyone can
be flooded-you don't have to be in a flood plain. Of flood claims paid,
approximately 30 percent are for property not in the flood plain.
- The average policy costs a little more than $300 a year. Homes
can be insured up to $250,000 for the building and $100,000 for the
contents. Renters can insure their belongings.
- Flood insurance can be purchased at any time, but there is
a 30-day waiting period after application and payment before the policy
becomes effective. The 30-day waiting period does not apply when: a
new loan is obtained or an existing loan is increased, extended or renewed
and secured by the property for which the loan was made.
- Flood insurance will pay for flood damage whether or not there
is a federal disaster. Federal disaster declarations are issued in less than 50 percent of
flooding incidents.
- More than 90 percent of all presidentially-declared disasters
include flooding.
For information, call the National Flood Insurance Program toll-free
at 1-800-427-4661.Homeowners, renters and business owners can call for the names of local
agents who handle flood insurance.
Last Modified: Friday, 15-Aug-2003 10:38:45