Flood Insurance Offers Peace Of Mind

Release Date: October 16, 2003 Release Number: 1493-30

» More Information on District of Columbia Hurricane Isabel

Washington, DC - If you can't afford to rebuild your home or replace your personal property if it were destroyed in a flood, you might consider a National Flood Insurance Policy. The D.C. Emergency Management Agency (DCEMA) and officials from the U.S. Department of Homeland Security's Federal Emergency Management Agency (FEMA) recommend such coverage. Flood insurance can make you whole again.

When Hurricane Isabel struck the East Coast last month, more than 1,143 District families and businesses had National Flood Insurance Program (NFIP) coverage for flood damages. Anyone can buy flood insurance if their community participates in the NFIP. The District is a participant so anyone in the city can buy National Flood Insurance. You don't have to be in a high-risk area to obtain a policy. In fact, 25 percent of damages occur outside of high-risk areas.

"Year in and year out, flooding is the leading cause of property loss from natural disasters in this country," said Scott Wells, FEMA official in charge of coordinating federal recovery efforts for Hurricane Isabel in the District of Columbia. "But all too often, people learn after the fact that protection against flood loss is not part of their normal homeowners insurance policy. Flood insurance will pay with or without a federal disaster declaration."

Important facts about flooding and the National Flood Insurance Program are:

• Flood damage is not covered by homeowners' insurance policies. You can protect your home, business and belongings with flood insurance. An NFIP policy can be purchased through your local insurance agent.
  
  
• Flood insurance pays even when no disaster is declared. Statistically, federal disaster declarations are issued in less than 50 percent of flooding incidents. An NFIP policy will pay for flood damage whether or not there is a federal disaster declaration.
  
  
• You can insure your home for up to $250,000 for the building and up to $100,000 for the contents. If you are a business owner, the maximum is $500,000 on the building and another $500,000 on contents.
  
  
• You can insure both structure and contents with a single flood insurance policy. However, you must specifically ask for coverage of your personal property when buying that policy. Contents coverage is not included unless you request it. Ask your agent. Renters can insure their personal property, as well.
  
  
• Flood insurance is affordable. The average flood insurance policy costs a little more than $300 a year for about $100,000 of coverage. Actual cost will depend on the flood zone location. If your property is not in a Special flood Hazard Area, it may qualify for a lower, preferred-risk premium.
  
  
• You can purchase flood coverage at any time. There is a 30-day waiting period after you have applied and paid the premium before the policy becomes effective. However, if you've just purchased a new home and are taking out a mortgage or are refinancing your current residence, there is no waiting period.

For more information on the National Flood Insurance Program, call the toll-free number at 1-800-427-4661. Homeowners, renters and business owners can call for the name of local agents who handle flood insurance.

On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA's continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders, and manages Citizen Corps, the National Flood Insurance Program and the U.S. Fire Administration.