Why Flood? ? Your Insurance Agent

The National Flood Insurance Program was created in 1968 to help provide a means for property owners to protect themselves financially against flooding associated with hurricanes, tropical storms, and heavy rains that impact the U.S. Prior to the NFIP being established there was no insurance in place to protect people from flood damages. The government relied on dams and levy?s to prevent flooding. As more and more land was developed the dams and levees could no longer hold back flood waters to protect property owners from damage, so the government created the NFIP to protect property owners who fall victim to flooding, have means to re-build what they lost. The NFIP also protects land use to ensure people don?t overdevelop the land and cause more flooding. Who needs flood insurance? The answer to that question is anyone who owns a home or business. Some people feel that they don?t need to purchase flood insurance from the government unless they live in low-lying flood prone areas, but that is far from the truth. According to FEMA more than 20% of flood claims come from those that live outside of the low-lying flood prone areas where flooding rarely occurs. If those that live in these areas aren?t prepared for a flood they could find themselves in hot water. When someone doesn?t have flood insurance and their home sustains flood damage their only option is to apply for disaster relief assistance, which usually won?t pay out unless the president declares a state of emergency. As if that?s not bad enough the payout you receive from the government is given to you in the form of a small business administration loan, which you are required to re-pay with interest. When you have flood insurance in place and a flood occurs your claim will be paid regardless of whether there was a disaster declared by the president, and the money you receive is yours to fix your property damages. The insurance company uses their money to pay your claim so you don?t have to pay it back like you would through disaster assistance programs which use tax dollars to pay claims and must be paid back with interest! It seems to me that not having flood insurance coverage causes too many problems when disaster strikes. Having insurance does make a difference. Don?t get stuck up the creek without a paddle, be safe and make sure your property is covered by flood insurance before it?s too late!

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Source: http://aaronsestate.com/2012/03/09/why-flood/

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