Archive for October, 2008:
How To Avoid Financial Flood Losses
Know this: Only flood insurance will protect homeowners, business owners and renters from the financial burdens associated with flood losses.
Every year, flooding causes millions of dollars in property damage across the United States. Some people caught in rising floodwaters suffered the total loss of their homes, others had the difficult and costly work of replacing or repairing walls, floors, utilities and damaged possessions, just to make their homes livable again. Too many shoulder these financial burdens on their own because they don’t have a flood insurance policy. Most homeowners insurance does not cover flood damage.
The Federal Emergency Management Agency urges all Americans to talk to their insurance agents to learn about flood risk and how to protect themselves with flood insurance.
Consider Six Facts:
1. In high-risk areas, there’s a reason flood insurance is required by most lenders–there is a significant risk that your property will flood if a major event occurs.
2. Even in low- to moderate-risk areas, flooding can and does occur. Twenty to 25 percent of all flood insurance claims come from lower-risk areas, and policies start as low as $119 per year.
3. Government disaster aid is not always available and when it is, it usually comes in the form of a loan that has to be paid back with interest. Flood insurance claims do not need to be repaid.
4. If somebody told you that you don’t need flood insurance, he or she was wrong. Every property is at risk for flooding. Talk to an insurance agent or check with a floodplain manager because you may be more at risk than you realize.
5. You can and should get flood insurance if you ever live near a levee. Levees can fail or overtop, with disastrous consequences.
6. Flood insurance can be purchased through most leading insurance companies. Rates are federally set and will not differ from company to company.
Washington State Officials: Buy Flood Insurance Now
From Washington State:
As the fall and winter storm season nears, authorities are urging folks to buy flood insurance.
Most homeowners’ insurance policies don’t cover floods and there is a 30 day waiting period before flood insurance becomes effective, according to a news release from the Washington State Department of Emergency Management.
Lewis County’s flood history indicates November is the most flood-prone month, with rivers exceeding their banks most frequently during the Thanksgiving weekend.
Rains in November 2006 lifted the Upper Cowlitz River more than seven feet over its banks, causing more than $26 million damage to homes, businesses and public infrastructure in Lewis County.
Last December, hundreds of West Lewis County residents saw flooding where they had never seen it before when the Chehalis River and its tributaries rose to record levels.
Lewis County’s deputy director of emergency management, Ross McDowell, said only about 15 percent of locals who suffered damage in December had flood insurance.
McDowell emphasized that anyone can buy flood insurance, even if they don’t live near a river or creek.
Roughly one-quarter of claims paid by the National Flood Insurance Program are for homes and apartments in areas of minimal flood risk, according the state Department of Emergency Management.
The average annual cost of a policy is $400.
The Facts on Flood Insurance
The following flood coverage is available:
- Renters can cover their belongings up to $100,000.
- Homeowners can insure their belongings up to $100,000 and their homes up to $250,000.
- Owners of non-residential property can insure their buildings and contents up to $500,000.
For information on the National Flood Insurance Program:
Go to www.floodsmart.gov.