Flood Insurance a Must

Major storms throughout the country along with the nation's impending hurricane season (June 1 to November 30), point up the need for flood insurance on your home. Unfortunately, most flood victims don't

“Great floods have flown from simple sources.”—William Shakespeare

Major storms throughout the country along with the nation’s impending hurricane season (June 1 to November 30), point up the need for flood insurance on your home. Unfortunately, most flood victims don’t find out until after the fact that their homeowner’s policies don’t cover flood damage. The basic rule-of-thumb: If you live in a community where flood insurance is available, you should have it.

“Floodwaters do not stop at coastlines and floodplain boundaries; everyone is at risk,” explains David Maurstad, FEMA's Assistant Administrator of Mitigation and Federal Insurance Administrator. “It’s important to insure your property no matter where you live.”

Residential flood insurance runs about $600 a year per $100,000 of insurance in a high-risk area. You can insure your house for up to $250,000, and the contents for up to $100,000. The flood insurance premium is a bargain compared to the alternatives—federal assistance is only available if your town or region is officially declared a disaster area by the federal government. Even then, whatever cash you get will be a loan that you’ll have to pay back.

For more on flood insurance, go to the National Flood Insurance Program.

$500Cost of an average annual flood insurance policy.(FEMA, 2008)

Read More:

Home's Insured, but Is It Enough?

FEMA Urges Individuals to Get Flood Insurance Protection

Flood Insurance—Why You Might Need It