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Top 10 Facts Every Consumer Needs to Know about the National Flood Insurance Program (NFIP)
- Everyone lives in a flood zone.
- Flood
damage is not covered by homeowners policies.
- You
can buy flood insurance no matter what your flood risk is.
- There
is a low-cost policy for homes in low- to moderate-risk areas.
- Flood
insurance is affordable.
- Flood insurance
is easy to get.
- Contents coverage
is separate, so renters can insure their belongings too.
- Up
to a total of $1 million of flood insurance coverage is available for non-residential
buildings and contents.
- There is
usually a 30-day waiting period before the coverage goes into effect.
- Federal
disaster assistance is not the answer.
1. Everyone
lives in a flood zone.
- You don't
need to live near water to be flooded.
- Floods are caused
by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded
drainage systems, dam or levee failure, etc.
2.
Flood damage is not covered by homeowners policies.
- You can protect your home, business, and belongings with flood
insurance from the National Flood Insurance Program.
- You
can insure your home with flood insurance for up to $250,000 for the building
and $100,000 for your contents.
3. You can buy
flood insurance no matter what your flood risk is.
- It doesn't matter whether your flood risk is high, medium,
or low, you can buy flood insurance as long as your community participates in
the National Flood Insurance Program.
- And, it's a good idea to buy even in low or moderate
risk areas: between 20 and 25 percent of all flood insurance claims
come from low- to moderate-risk areas.
4.
There is a low-cost policy for homes in low- to moderate-risk areas.
- The Preferred Risk
Policy is available for just over $100 a year.
- You
can buy up to $250,000 of coverage for your home and $60,000 of coverage for your
contents.
5. Flood insurance is affordable.
- The average flood insurance policy costs approximately
$400 a year for about $100,000 of coverage.
- In
comparison, a disaster home loan can cost you more than $300 a month for $50,000
over 20 years.
6. Flood insurance is easy to
get.
- You can buy NFIP flood
insurance from private insurance companies and agents;
call yours today!
- You may be able to purchase flood insurance
with a credit card.
7. Contents coverage is separate,
so renters can insure their belongings too.
- Up
to $100,000 contents coverage is available for homeowners and renters.
- Whether
you rent or own your home or business, make sure to ask your insurance agent about
contents coverage. It is not automatically included with the building coverage.
8. Up to a total of $1 million of flood insurance coverage
is available for non-residential buildings and contents.
- Up to $500,000 of coverage is available for non-residential
buildings.
- Up to $500,000 of coverage is available for
the contents of non-residential buildings.
9.
There is usually a 30-day waiting period before the coverage goes into effect.
- Plan ahead so you're not caught without flood
insurance when a flood threatens your home or business.
10.
Federal disaster assistance is not the answer.
- Federal disaster assistance is only available if the President
declares a disaster.
- More than 90 percent of all disasters
in the United States are not Presidentially declared.
- Flood insurance pays even if a disaster is not declared.
Every consumer needs to know about the National Flood Insurance Program.
F-301 (5/03)
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