Consider flood insurance heading into hurricane season

WASHINGTON – June 4, 2007 – It’s too late to buy flood insurance before a June hurricane, but purchase it now and coverage will begin 30 days later – on Independence Day.

FEMA’s National Flood Insurance Program (NFIP) is strongly urging residents living both inside and outside high-risk flood areas to know their flood risk and consider purchasing a flood insurance policy. Last year, one in three flood insurance claims came from low- to moderate-risk areas. The average premium for a yearly flood insurance policy is around $500.

“Standard homeowners insurance does not typically cover flood damage,” says David Maurstad, assistant administrator of mitigation and federal insurance administrator for NFIP. “Too many properties located in high-risk flood areas continue to be uninsured or underinsured against floods. We urge all Americans to learn their flood risk and take steps to protect themselves.”

Without flood insurance, residents will likely have to cover repair costs out of their own savings – and future. In fact, just two inches of water can cause up to $7,800.00 in total losses, including replacement costs for carpeting, flooring, drywall and baseboard molding, along with new lamps, bookshelves and cleanup fees. Homeowners without flood insurance may have to absorb the financial losses on their own or seek limited funding from other sources. To date, the average flood insurance claim for 2006 flood events is approximately $25,000. To learn more about the damage floods

Flood insurance is available through about 90 insurance companies in more than 20,300 participating communities nationwide to renters, business owners and homeowners. In low- to moderate-risk areas, residents can protect their properties with lower-cost Preferred Risk Policies (PRPs) that start at $112 a year.

NFIP’s Web site allows individuals to key in their home address to determine their property’s risk from flooding at http://www.floodSmart.gov or by calling (800) 427-2419.

© 2007 FLORIDA ASSOCIATION OF REALTORS®

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