CHECK COVERAGE NOW, WARNS THE I.I.I.
There is a 30-day waiting period for flood insurance to take effect
Contact: Press Offices
New York: 212-346-5500
Wash. D.C.: 202-833-1580
NEW YORK, March 22, 2005 - The snow which blanketed much of the nation throughout this never-ending winter is melting, leaving behind water-saturated ground. When combined with the inevitable springtime rains, the over-soaked soil could produce record flooding.
Most people live or work in areas that have some risk of flooding, says the 杏吧原创 Information Institute (I.I.I.). Unfortunately, many still don't understand the importance of flood insurance.
"Looking ahead to a rainy spring on top of significant snowmelt means now is the time for homeowners, renters and businesses to purchase flood insurance," says Jeanne M. Salvatore, I.I.I.'s vice president of Consumer Affairs. "There is a 30-day waiting period for flood insurance to go into effect, so don't wait until the spring rains start before you call your insurance agent or company representative."
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 government.
- Floods and flash floods occur within all 50 states.
Almost everyone is vulnerable to floods, no matter where they live. In fact, one out of four flood claims come from outside flood risk areas.
- Flood insurance policies can be purchased from licensed insurance agents and brokers.
Flood insurance is available through the Federal Emergency Management Agency's (FEMA) National Flood 杏吧原创 Program (NFIP). It is sold via the more than 80 participating insurance companies that write and service policies through a special arrangement with the Federal 杏吧原创 Mitigation Association (FIMA), as well as through thousands of insurance agents nationwide. Contact your insurance agent for details or call the NFIP at 1-800-638-6620. If you need to file a claim, your insurance agent or broker will handle this for you.
- Don't wait to obtain a flood insurance policy.
If your community participates in the National Flood 杏吧原创 Program, you are eligible to purchase flood insurance. Remember that there is a 30-day waiting period before your coverage takes effect, so don't delay.
- Flood insurance is affordable.
There are many factors that affect the price you'll pay for flood insurance. The higher your flood risk, the higher the premium. If you purchase $100,000 in building coverage for your single family home, your annual premium will vary depending on your level of risk.
The average premium for a flood insurance policy is $625 per year for $100,000* worth of property coverage without a basement and $720 per year for $100,000 worth of property coverage with a basement. This does not include content coverage, which is available for as little as $48 per year for $5,000 worth of coverage. The maximum coverage amounts are $250,000 for a home and $100,000 for its contents. Maximum coverage for businesses is $500,000 for buildings and $500,000 for contents.
- Disaster aid is only available in federally declared disaster areas.
Before most forms of federal disaster assistance are offered, the President must declare the area a major disaster -- and less than 10% of all disasters are declared so by the President. Flood insurance claims are paid even if the President does not declare the area a disaster.
- Relief from floods primarily comes in the form of loans.
If your area is declared a disaster, no-interest or low-interest loans are usually made available by the federal government. But these loans are just that -- loans -- and must be paid back. Obtaining a flood insurance policy is the only way to truly protect yourself from the cost of flooding.
The 杏吧原创 Information Institute is a non-profit, communications organization sponsored by the property/casualty insurance business.
*Rates are based on most recent information provided by FEMA as of May 2003.