FEMA SAYS PEOPLE NEED TO THINK ABOUT BUYING FLOOD INSURANCE

FROM:  FEMA
Buying Flood Insurance Now Will Save Dollars, Heartache Later
Release date:

January 4, 2013
Release Number:
MD-4091-008

HUNT VALLEY, Md. – People who live near water are not the only ones who experience flooding. Floods can move and spread for miles. Flash floods can begin and end within just hours, cutting a path of major destruction.

One of the ways you can protect yourself is with flood insurance. The Federal Emergency Management Agency (FEMA) offers this important insurance coverage through the National Flood Insurance Program (NFIP). The NFIP was created by Congress in 1968 to provide flood insurance at a reasonable cost in exchange for careful management by local communities of flood-prone areas.

Flood insurance provides coverage that your homeowners or renters insurance doesn’t – coverage for damages caused by floods.

Here are some facts you should know about flood insurance:
Homeowners, business owners and renters all can purchase flood insurance as long as their community participates in the NFIP.
Flood insurance claims are paid even if a federal disaster is not declared by the President.
You do not have to live in a floodplain to buy flood insurance. In fact, more than 20 percent of flood insurance claims come from medium- or low-risk flood areas.
Compared to a fire, people in floodplains are nearly four times more likely to have a flood during their 30-year mortgage.
You can buy flood insurance from licensed insurance agents.
Flood insurance coverage is available for residential and business structures and contents. A single-family home can be insured for up to $250,000. An additional $100,000 can be purchased for contents. Commercial buildings can be insured for up to $500,000. Business contents can be covered for up to $500,000.
Renters can purchase contents coverage for up to $100,000 to cover personal belongings.
If you have a home-based business, you’ll need to purchase separate coverage for the business and/or contents. Coverage is not automatically included under a homeowner’s flood insurance policy, even if the business is located inside your home.
A flood insurance policy can be written to cover actions taken to prevent flood damages. These actions can include moving the insured contents to a safe place and/or the cost of purchasing sandbags, plastic sheeting, lumber, pumps, etc.
A flood insurance claim will reimburse you for your covered losses and never has to be repaid, unlike a disaster assistance loan.
Okay, so now you’re interested in flood insurance. How do you go about getting a policy and what else do you need to know?
Contact your insurance agent and tell them you would like more information about flood insurance. The agent will be able to determine whether your community participates in the NFIP. Flood insurance from the NFIP is only available in participating communities. The agent should also be able to tell you what is covered and how much your policy will cost.
The cost will be determined in part by whether you live in a floodplain, also known as Special Flood Hazard Area (SFHA). Your local building official(s) should have maps showing if there are Special Flood Hazard Areas and where they are. You can determine whether you are in a low, medium or high-risk area by checking these maps.
Those who are located outside the floodplain may be able to get a Preferred Risk Policy. These policies offer fixed combinations of building and contents coverage at set prices.
Another way to reduce your premium is through an elevation rating. If the lowest floor of your house is above the base flood elevation (predicted flood depth in your area), you can qualify for lower rates. Local officials can help determine the base flood elevation for your home, however, the homeowner will need to provide an elevation certificate.
Even so, the cost of flood insurance is far cheaper than having to pay thousands of dollars to repair your home or replace contents because a flood caught you off guard.

FEMA URGES PEOPLE TO GET FLOOD INSURANCE BEFORE HURRICANE SEASON BEGINS

FROM:  FEMA
Get FloodSmart: Protect Now With Flood Insurance
30-Day Countdown to the 2012 Hurricane Season Begins May 2
Release Date: May 1, 2012
Release Number: HQ-12-033
WASHINGTON, D.C. -- Every year, thirty days from the start of hurricane season, FEMA officials urge U.S. residents to prepare their homes and businesses for the heightened flood risks associated with hurricanes and tropical storms. This year, FEMA is placing more urgency in this message due to the expiration of the National Flood Insurance Program (NFIP) on May 31, 2012, the day before the 2012 hurricane season begins on June 1st.

The authorization for the National Flood Insurance Program is scheduled to expire on May 31 unless Congress acts in advance to reauthorize it. The NFIP makes federally backed flood insurance available to homeowners, renters and business owners.  The NFIP identifies areas of flood risk; it encourages communities to implement measures to mitigate against the risk of flood loss; and it provides financial assistance to help individuals recover rapidly from flooding disasters.

"Flood insurance is essential to help protect against the devastating effects of flooding, and the time to act is now," said David Miller, Associate Administrator for FEMA's Federal Insurance and Mitigation Administration. "As we approach a potentially active hurricane season, FEMA is urging Congress to reauthorize the NFIP and send a clear signal to citizens, communities, and private sector partners that the federal government will continue to support our nation's efforts to manage flood risk."

Flooding is the most common and costly natural disaster to affect every state across the country. Severe weather has already brought significant flood events to many states in the U.S. As we continue to monitor conditions and respond to these events, we must also look forward to summer and hurricane-related weather patterns that will heighten flood risks for many.

FEMA also stresses that flood risks associated with hurricane season extend beyond the Gulf and Southeastern coasts.  The largest amounts of rainfall from hurricanes are often produced by slow moving storms that stall out miles from a shoreline as did Tropical Storm Lee in 2011.  In addition, last year Hurricane Irene caused major flooding over much of the mid-Atlantic and Northeast when it moved inland, with high winds and torrential rains.

FEMA is urging residents to purchase flood insurance now.  Flood insurance is available through more than 85 insurance companies in nearly 22,000 participating communities nationwide.  Most everyone can purchase flood insurance – including renters, business owners, and homeowners.  Flood insurance is also affordable.  The average flood insurance policy is around $625 a year. And in moderate- to low- risk areas, homeowners can protect their properties with low-cost Preferred Risk Policies (PRPs) that start at just $129 a year.  Individuals can learn more about their flood risk by visiting www.FloodSmart.gov or calling 1-800-427-2419.

FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

FEMA RECOMMENDS PURCHASING FLOOD INSURANCE

FROM:  U.S. FEDERAL EMERGENCY MANAGEMENT AGENCY
SALEM, Ore. -- Oregonians may be water-weary, but those with flood insurance know they have chosen the best way to protect their homes from flooding.
 “Flooding is the most common disaster in this country, but homeowner’s insurance rarely covers flood damage,” said the Federal Emergency Management Agency's Federal Coordinating Officer Dolph Diemont.

“Ask anyone who was flooded recently,” said Oregon Office of Emergency Management’s State Coordinating Officer Paulina Layton. “All it takes is a few inches of water to cause major damage to your home. The National Flood Insurance Program offers a low-cost way of protecting yourself and your property from harm.”

The National Flood Insurance Program (NFIP) is backed by the federal government. Policies are sold by private insurance agents throughout Oregon. Homeowners, businesses and renters can purchase flood insurance as long as their community participates in the program.

Today 21,564 communities nationwide participate in NFIP; 260 of them are in Oregon. Only 21 incorporated cities and three tribes in Oregon do not participate in the program. To participate, a community must adopt and administer flood hazard regulations. To see a list of participating Oregon communities, go to www.fema.gov/fema/csb.

Homes in high risk areas, have a 1 in 4 chance of flooding during a 30-year mortgage. As a result, many borrowers in high-risk areas are required to buy flood insurance. But flooding can happen anywhere. In fact, nearly 20 percent of flood insurance claims come from moderate to low risk areas.

Many people choose not to buy flood insurance because they believe they cannot qualify for it, or that it will cost more than they can afford.

 “We understand people's concerns, particularly in this tight economy, said Layton, “But buying flood insurance doesn't have to be expensive,” said Layton.

The average homeowner in Oregon pays about $725 a year for flood insurance. NFIP flood insurance can be purchased for as little as $129 a year for a home in a low risk area. Costs vary depending on how much insurance is purchased, what it covers, and the property’s flood risk.

Flood insurance can cover up to $250,000 for the structure and up to $100,000 for its contents. For businesses, structural coverage is available up to $500,000, and up to $500,000 for contents.

Since 1973, the NFIP has paid nearly $40 billion dollars in flood insurance claims, helping hundreds of thousands of families and businesses recover from flood events. More than $103 million of that has come to Oregon policy holders.

So be flood smart. Buy flood insurance. Remember: It takes 30 days after purchase for flood insurance to go into effect. Act now.

Go to www.floodsmart.gov to find out more about your flood risks and NFIP.
FEMA's mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.