Disaster Officials Urge Texans To Buy Flood Insurance
Release Date: September 11, 2007
Release Number: 1709-088
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WACO, Texas -- As Texas - and much of the Midwest - emerges from a series of major floods, federal and state officials are urging people to buy flood insurance before the next flood hits.
"Even if you weren't flooded recently, you may still be vulnerable to rising water," said Federal Coordinating Officer Kenneth Clark of the Federal Emergency Management Agency."
"The risk of flooding is almost three times greater than the risk of fire over the period of a 30-year mortgage, yet most people are insured against fire but not floods," Clark noted. "Obviously it makes good sense to insure for both."
In 1968, Congress created the National Flood Insurance Program (NFIP) to help individuals insure themselves for a reasonable cost against flooding. Local governments must first agree to participate in the NFIP before its residents can purchase the insurance. Almost 40 years after its creation, NFIP oversees 5.4 million policies throughout the country.
Most people who live in NFIP participating communities, including business owners, homeowners and renters, are eligible to purchase Federally-backed flood insurance. A residential building can be insured up to $250,000 and its contents up to $100,000. Renters can cover belongings up to $100,000, and non-residential property owners can insure their buildings up to $500,000 and contents up to $500,000. The premiums for an NFIP policy, averaging about $500 a year, can be less expensive than the monthly payments on a federal disaster loan.
The National Flood Insurance Program (NFIP) maintains its Floodsmart Web site (www.floodsmart.gov) so people can assess their vulnerability to flooding, calculate their costs for structure and contents insurance, and find nearby agents who sell NFIP policies.
All areas are susceptible to flooding, although to varying degrees. It is advisable to have flood insurance in high risk areas and even in low-to-moderate flood risk areas; between 20 and 25 percent of the NFIP's claims come from outside high-flood-risk areas.
Flood insurance policies do not take effect until 30 days after purchase, so it is important to buy coverage now, before the next flood. There is no waiting period if a policy is purchased at a mortgage closing.
FEMA coordinates the federal government's role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.
Last Modified: Tuesday, 11-Sep-2007 16:10:35