Preferred Risk Flood Insurance - A Smart Buy
Release Date: August 1, 2003
Release Number: 1474-81
» More Information on West Virginia Severe Storms, Flooding and Landslides
Charleston, WV - Many West Virginia residents remain without flood insurance because their home or business has never been flooded. If this is your experience and you live in a low- to moderate-risk area, signing up for an inexpensive Preferred Risk Policy under the National Flood Insurance Program (NFIP) is the thing to do now.
The U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA), which administers the Preferred Risk Policy under NFIP, reminds residents that flood insurance is important because floods can occur almost anywhere. Of all natural disasters that occurred in the last five years, floods caused 61 percent of all property damage.
"We encourage property owners to protect themselves from unexpected losses due to a disaster," said Louis Botta, federal coordinating officer for FEMA. "The NFIP was established for the purpose of bringing flood insurance rates within reach of the average homeowner."
Flood damage is not covered under most homeowner policies,
and there is no guarantee that federal assistance will be available when a flood occurs. If it is available, federal help may come in the form of a low-interest loan, which will have to be repaid. Applicants may be required to purchase a flood policy before being approved for federal assistance. The special Preferred Risk Policy only covers one- to four-family buildings. Insurance is offered at regular rates for buildings in higher risk areas and other types of properties.
The Preferred Risk Policy will not be issued if a property owner has received:
- Two flood loss payments of more than $1000 each;
- Three or more loss payments of any amount;
- Two Federal Disaster Relief payments of more than $1,000 each;
- Three Federal Disaster Relief payments of any amount; or
- One flood insurance claim payment and one disaster relief payment of more than $1000 each (including loans and grants).
Structures are insured up to $250,000 and the contents of a home up to $60,000. Replacement cost coverage is also available for single-family, primary residences. Rates begin at $111 per year for buildings without basements.
Considering the substantial costs involved in repairing a home that suffers flood damage and of replacing valuable and treasured items, the Preferred Risk Policy is one of a homeowners best buys. For more information, call the National Flood Insurance Program at 1-888-CALL-FLOOD, ext. 304.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.
Last Modified: Friday, 01-Aug-2003 09:01:15