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.

Flood Insurance

Flood insurance protects you from the financial devastation caused by floods. Even a few inches of water can bring thousands of dollars in repair and restoration costs. Most homeowners insurance does not cover floods. You need flood insurance.

Flood insurance, like earthquake insurance, is “single peril” insurance, sold separately from homeowners insurance. Flood insurance protects against losses to buildings and their contents, not the land surrounding them. The coverage applies whether the flooding results from heavy or prolonged rains, coastal storm surge, snow melt, blocked storm drainage systems, levee dam failure, or other causes. To be considered a flood, the waters must cover at least two acres or affect at least two properties.

Flood insurance is available both within and outside of floodplains. Your property’s flood risk is shown on flood hazard maps. Different types of policies are available depending on your flood risk.

If you live in a high-risk area, you will need a Standard Policy. Most mortgage lenders will require that you have such a policy before they will approve your loan.

Outside of high-risk areas, flood insurance is also available, usually at lower cost. A Preferred Risk Policy covers both a home and its contents, with premiums as low as $119 per year. While you aren’t federally required to have flood insurance in a low-to-moderate risk area, that does not mean you won’t ever need it. Large floods often extend beyond the boundaries of high-risk areas and smaller floods occur outside high-risk areas as well. In fact, a quarter of all flood insurance claims come from low-to-moderate risk areas.

Flood insurance is sold and serviced by private insurers, and backed by the federal government. More than 85 companies sell flood insurance. Often the same insurance agent who wrote your homeowners insurance policy can help you obtain flood insurance. Or you can find an agent near you by clicking on Agent Locator to the left and entering your zip code. Flood insurance costs the same wherever you purchase it, because the rates are set by the National Flood Insurance Program.

Flood insurance covers both homes and businesses. With residential coverage you can get up to $250,000 of insurance to protect your home and up to $100,000 to protect its contents. If you are located in (or moving into) a high-risk area, federally regulated or insured lenders will require you to have flood insurance for the amount remaining on your mortgage, or $250,000, whichever is lower. With commercial coverage, you can get up to $500,000 of insurance to protect your building and up to $500,000 to protect its contents.

Different types of policies are available based on your property’s location and flood history.

Standard Flood Insurance Policies - If you live in a community that participates in the NFIP, your building and its contents can be covered. You must apply for building coverage and contents coverage separately.

Preferred Risk Policies - If your home or business is in a low or moderate risk zone, your building may qualify for a low-cost Preferred Risk Policy. Premiums for both building and contents start at just under $119.

Don’t Wait Until It’s Too Late
Regardless of the type of policy you choose, there is a standard 30-day waiting period, from date of purchase, before a new flood policy goes into effect. The 30-day waiting period does not apply if:

• The initial purchase of flood insurance occurs in connection with the making, increasing, extension, or renewal of a loan in a high-risk zone by a regulated lender; or
• The initial purchase of flood insurance occurs within one year of a map change.