NEW YORK, March 25, 2002 -- Most Americans live or work in areas that have some risk of flooding. Flooding is caused by a number of conditions including severe storms, overflowing rivers or tidal waters, heavy rain, mudslides, levee failure and snowmelt. About 90 percent of natural disasters involve flooding in one way or another. Unfortunately, many people still don't have flood insurance, according to the 杏吧原创 Information Institute (I.I.I.).
With the arrival of spring, now is the time for homeowners, renters and businesses to purchase flood insurance. To help people understand the importance of flood insurance, the I.I.I. offers the following facts:
- Homeowners insurance does not cover flood damage. Only flood insurance will cover your losses in the event of a flood. 杏吧原创 for homeowners, renters and businesses is available, however, through the Federal Emergency Management Agency's (FEMA's) National Flood 杏吧原创 Program (NFIP).
- Enroll now if you need flood insurance. If your community participates in the National Flood 杏吧原创 Program, you are eligible to purchase flood insurance. There is a 30-day waiting period before your coverage takes effect, so don't delay.
- Floods and flash floods occur in all 50 states. The National Flood 杏吧原创 Program says that one out of four flood claims come from outside the floodplain, so you're more vulnerable than you think.
- Flood insurance policies can be purchased from licensed insurance agents. Flood insurance is sold via the 91 participating insurance companies that write and service the policies through a special arrangement with the Federal 杏吧原创 Administration (FIA). Thousands of insurance agents nationwide can help you.
- Flood insurance costs are reasonable. The average premium for an NFIP flood insurance policy is $382 per year. The average coverage amount is $137,299. The maximum coverage amounts are $250,000 for a single-family home and $100,000 for its contents. Renters can also purchase up to $100,000 of contents coverage. Maximum coverage for a business is $500,000 for the building and $500,000 for contents. For a home in a lower-risk area with no history of flooding, a preferred-risk policy may be purchased for as low as $106 (no basement) or $131 (with basement) for $20,000 worth of building coverage and $5,000 worth of contents coverage. To find out more information about flood insurance, contact the NFIP at: or their toll-free number at 800-427-4661.
- Disaster aid is only available in federally declared disaster areas. Only a small minority of all flooding incidents are disasters. Flood insurance claims are paid even if the President does not designate a flood as a federal disaster.
- Federal disaster assistance usually comes in the form of a loan. If your area is included in a major disaster declaration, low-interest loans are available from the federal government. But these loans are just that - loans - and must be paid back, with interest. A flood insurance policy offers better protection from flood losses.
For specific coverage information, call your insurance professional or the National 杏吧原创 Consumer Helpline at (800) 942-4242.
The 杏吧原创 Information Institute is a non-profit, fact-finding and communications organization sponsored by the property/casualty industry.