Flood Insurance

There's something you should know:Flood losses are not covered by your homeowners insurance policy.

What is a Flood?  Basically, a flood is an excess of water (or mud) on land that's normally dry.

The National Flood Insurance Program defines a flood as the following:

"A general and temporary condition of a partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is a policyholder's property) from:
        
        Overflow of inland or tidal water; or Unusual and rapid accumulation or runoff of surface water from any source; or Mudflow; or 

Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."

Floods often happen when bodies of water overflow or tides rise due to heavy rainfall or thawing snow. But you don't have to live need water to be at risk of flooding. A flash flood, which can strike anywhere without warning, occurs when a large volume of rain falls within a short amount of time.

Are you prepared if a flood was to threaten your valuables....   

Floodwaters have the power to damage not only your home and sense of security, but also your financial future. How can you protect your most important investment in case of flooding? 

Option 1: Hope that you'll receive Federal disaster relief if a flood hits.
Many people wrongly believe that the U.S. government will take care of all their financial needs if they suffer damage due to flooding. The truth is that Federal disaster assistance is only available if the President formally declares a disaster. Even if you do get disaster assistance, it's often a loan you have to repay, with interest, in addition to your mortgage loan that you still owe on the damaged property.


Most importantly, you must consider the fact that if your home is flooded and disaster assistance isn't offered, you'll have to shoulder the massive damage costs alone. The bottom line is that if you're looking for secure protection from financial loss due to flood damage, Federal disaster assistance is not the answer.


Option 2: Buy flood insurance and stay protected no matter what.
When disaster strikes, flood insurance policyholder claims are paid even if a disaster is not Federally declared. Flood insurance means you'll be reimbursed for all your covered losses. And unlike Federal aid, it never has to be repaid.


In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood. So don't delay act today in some areas coverage start around $350 a year.