The Good News About Flood Insurance
Release Date: January 19, 2005
Release Number: 1539-350
» More Information on Florida Hurricane Charley and Tropical Storm Bonnie
» More Information on Florida Hurricane Frances
» More Information on Florida Hurricane Ivan
» More Information on Florida Hurricane Jeanne
ORLANDO, Fla. -- Even if you don’t live near water your home still has a chance of being flooded. In fact, 25 to 30 percent of flood insurance claims are paid in low risk areas.
But the good news is a Preferred Risk Policy provides flood protection for properties outside of high-risk areas at substantially lower premiums.
Flood insurance can be purchased from local insurance agents through the National Flood Insurance Program (NFIP), administered by the Department of Homeland Security’s Federal Emergency Management Agency (FEMA), if your community participates in the NFIP. These communities agree to adopt and enforce sound floodplain management practices to reduce future flood damage.
Only flood insurance protects your most important financial assets, your home and your personal property, from floods. Regular homeowners insurance does not cover damages from flooding.
With changes made in the last year to the Preferred Risk Policy (PRP) coverage, people in low to moderate risk areas can get lower premiums on the full range of flood insurance coverage available for residential and business structures and contents.
- A single-family home can be insured for up to $250,000. An additional $100,000 in coverage can be purchased for contents. (Note that contents coverage is limited for basement contents to clothes washers and dryers; food freezers, other than walk-in, and food in any freezer; and portable or window-type air-conditioning units.)
- Renters can purchase contents coverage for up to $100,000 to cover personal belongings.
- Commercial building owners and lessees meeting underwriting criteria are now eligible for policies at low PRP rates.
PRP provides low-cost protection to properties located in areas of low to moderate flood risk. To find out your flood risk, contact your insurance agent or your city or county government who may have Flood Insurance Rate Maps, published by FEMA, which are available for public inspection. Areas of low to moderate flood risk are indicated on the map as zones B, C, or X.
If your building is located in a zone that begins with the letter A or V, you are in a Special Flood Hazard Area, or floodplain. If you live within a floodplain, your chances of getting flooded are higher – therefore the premium is higher. Even so, the cost of flood insurance is far less expensive than having to pay thousands of dollars to repair your home or replace contents because of flood damage.
In most cases, there is a 30-day waiting period once you have applied for flood insurance. There is no waiting period for flood insurance to go into effect when it is purchased in connection with initiating, increasing, renewing or extending a mortgage loan.
Call your insurance agent today to find out more about Preferred Risk Policy.
The State Emergency Response Team (SERT) is a collaboration of Florida’s state agencies led by the state coordinating officer. SERT’s mission is to ensure that Florida is prepared to respond to emergencies, recover from them, and mitigate their impact.
FEMA prepares the nation for all hazards and manages federal response and recovery efforts following any national incident. FEMA also initiates mitigation activities, trains first responders, works with state and local emergency managers, and manages the National Flood Insurance Program and the U.S. Fire Administration. FEMA became part of the U.S. Department of Homeland Security on March 1, 2003.
Last Modified: Wednesday, 19-Jan-2005 12:20:29