Flood Insurance

Flood insurance - Do You Need It?

Flood insurance is not typically a part of homeowners' insurance policies, though many people don't realize that until it's too late. Once the disaster has occurred, many homeowners and business owners find out that their coverage included many damages, but that flood insurance wasn't among them. To find out more about flood insurance, talk to your insurance agent or contact the Federal Emergency Management Agency (FEMA) or the National Flood Insurance Program (NFIP).

The Washington State Office of the Insurance Commissioner, located online at www.insurance.wa.gov, offers information about various kinds of insurance, including flood insurance. According to information from this site, floods are second only to fires in the devastation caused by natural disasters. Despite that, many people simply don't realize the risk they are taking by not having flood insurance.

The NFIP, overseen by FEMA, was created in 1968, according to information from the NFIP website. Congress established the organization to deal with an increasing number of flood disasters that were relying on public funding for recovery. In order for homeowners of a community to be eligible for NFIP flood insurance, a community must adopt and enforce floodplain ordinances. This means that building in flood-prone areas is strictly monitored by the governing body of that area. While it is possible to build in some flood plains, lenders require flood insurance before issuing loans to build.

Some people might think that they are at a low risk for flooding, but NFIP indicates that about a quarter of all flood claims are made by homeowners in areas that are considered low to moderate risk areas. So you can see that even if you aren't in an area that has been designated high risk, flood insurance should be something that you at least consider as part of your homeowner coverage.

The NFIP, located online at www.fema.gov/nfip/whonfip.shtm, has extensive information about flood insurance, including a link to laws and regulations, a flood insurance library and an opportunity to "ask the expert." The site also includes news and events, and lists workshops in case you want to get more information about the flood insurance offered in your area.

If you want to know about flood insurance claims in your area, you can click on the "flood insurance statistics" link on the NFIP website. From there, you can check flood insurance claims for a particular time frame, policies in force during a specific time, or policy and claim information listed by state.

For more information about FEMA and flood insurance, including ways to prepare for flooding conditions, check out the FEMA website at www.fema.gov.