Do You Need Flood Insurance?
By Kristi Vaughan
Think your home is not at risk for flood damage? Maybe it is time to take a closer look. According to the National Flood Insurance Program, everyone faces flood risks, especially as increased development covers the land with asphalt and buildings.
What is a flood?
Floods are not just torrents of water ravaging the streets of low-lying towns. Flood conditions occur anytime an area of two or more acres of normally dry land is inundated with water - from a sudden rainstorm or even snow melt - according to the National Flood Insurance Program.
Some areas are at higher risk than others for floods, but insurance agents and the National Flood Insurance Program stress that no one is immune. In fact, according to the Federal Emergency Management Agency (FEMA) in a high risk area, your home has a 26 percent chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 4 percent chance of fire.
If your property is damaged by these rising waters, your homeowner's policy will not cover the costs. Some relief in the form of loans may be possible through FEMA but only if the site has been declared a disaster by the federal government.
What is flood insurance?
Flood insurance is financially backed by the National Flood Insurance Program and offered by many insurance agents. It covers damage to structural elements, contents and personal items.
Premium rates for flood insurance are based on risk and the level of flood prevention work that has occurred in your community. Property owners in more than 1,000 communities across the U.S. receive discounts because of the effort conducted by their towns. FEMA maintains a list of communities where property owners are eligible for discounts.
Protect yourself against flood dangers
As an individual, there is little you can do to prevent a flood, but there are several steps recommended by the Insurance Information Institute that you can take to protect you and your family. These include:
- Pay attention to flood watches and warnings
- Plan an evacuation route
- Develop a communication plan if you are separated from your family
- Maintain a supply of emergency materials including sandbags
- Know where the switches are located for gas, electricity and water