National Flood Insurance Program

Many residents remain without flood insurance because their home or business has never been flooded. However, for those who live in a low- to moderate-risk area, signing up for an inexpensive Preferred Risk Policy under the National Flood Insurance Program ( NFIP ) makes sense. Flood damage is not covered under homeowner insurance policies, and there is no guarantee that federal assistance will be available when a flood occurs.

NFIP’s Preferred Risk rates are quite a bargain for residents. Premiums start at $119 for building and contents coverage. A home can be covered up to $250,000 for the dwelling and $100,000 for contents. Replacement cost coverage is available for single-family, primary residences. Renters can purchase insurance for contents only.

Business owners are also eligible for Preferred Risk Flood Insurance. Commercial premiums start at $550 per year for the building or $145 per year for contents only. Non-residential coverage can be purchased for up to $500,000 for the dwelling and $500,000 for the contents.

The Federal Emergency Management Agency ( FEMA ), which administers the Preferred Risk Policy under NFIP, reminds residents that flood insurance is important because floods can occur where they are least expected. Approximately 25 percent of all claims paid by the NFIP are for policies in low- or moderate-risk communities.

“Every year, flooding causes billions of dollars in property damage in the United States,” said NFIP Floodplain Management Specialist Margaret Salfrank. “Yet thousands who experienced flooding had no flood insurance because they thought they would never need it.”

The special Preferred Risk Policy is available for buildings that house one to four families, and non-residential properties. Other insurance is offered at regular rates for buildings in higher risk areas and other types of properties. The Preferred Risk Policy will not be issued if a property owner has received:

• Two flood loss payments of more than $1,000 each;
• Three or more loss payments of any amount;
• Two federal disaster relief payments of more than $1,000 each;
• Three federal disaster relief payments of any amount; or
• One flood insurance claim payment and one disaster relief payment of more than $1,000 each including loans and grants.

Considering the substantial costs involved in repairing a flood-damaged home and replacing valuable contents, the Preferred Risk Policy can be a wise purchase for property owners. For more information, call the National Flood Insurance Program at 1-800-427-4661 or visit the NFIP Internet site at www.floodsmart.gov. At the Web site you can enter your home or business address to view your flood-risk level and find an insurance agent near you who sells NFIP policies.

FEMA coordinates the federal government’s role in preparing for, preventing, mitigating the effects of, responding to, and recovering from all domestic disasters, whether natural or man-made, including acts of terror.

After the Flood - Tips for Homeowners

Tips to get you back home, safe and sound
Whether you face a mud-coated lawn or waterlogged house, returning to a flood damaged property is traumatic, and can be dangerous as well.  Just because the waters have subsided you’re not necessarily on safe ground. After you’re certain your neighborhood and home are free of major hazards, follow these guidelines to start over and take care.
Going in
Even after local law enforcement and utility companies have declared an area ready for homeowners to return, you’ll need to approach your property with caution. Check all of the items on this list to ensure you go home unharmed. While you’re at it, take along a notebook or camera to document any damage for insurance claims and tax forms.

• Even if electricity is turned off in the area, be sure it is disconnected at the house.
• Assume all wires (cable and electricity) on the ground are live and report them to the power company.
• Make sure the house is completely dry before turning power back on. All wet furnishings and carpets must be removed.
• Have the wiring and all appliances checked by a licensed electrician.
• Look for exterior structural damage on the house including cracked foundations, sagging roofs, broken columns or piers and unsupported porch roofs. If the structure is severely damaged, do not enter the house.   Call an inspector or contractor instead.

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• Watch for sagging ceilings. Damaged plaster or wallboard can collapse and cause injury. Carefully open doors and wait to see if debris falls before entering.
• Look for broken gas lines and listen for gas leaks. If you smell gas, do not enter the property. Immediately report the suspected leak to the gas company.
• Have a licensed plumber or the utility company check the gas lines before restoring service.

Other precautions

• Never approach a flood-damaged property after dark. Wait for daylight when you can see all potential dangers. Use a flashlight only to further illuminate dark interiors or corners. Candles, lighters and other open flames can ignite gas leaks or spilled combustibles.
• Remember that mud deposited by floodwaters may be contaminated with sewage and other harmful bacteria. Wear boots and gloves and be sure to wash with a disinfectant soap after contact with mud.
• Never drink the local water without boiling. Water supply lines and wells will need to be flushed and tested before it is safe to drink tap water.
• Dispose of all foods (even canned goods) that may have been in contact with floodwaters.

Source: U.S. Federal Emergency Management Agency