Flood Insurance

At a time when flooding causes more than $2 billion in property damage each year, you cannot afford to think that it will never happen to you. It can happen, and often when it’s least expected.
Remember, there is generally a 30-day waiting period on new policies. Once a storm warning has been issued, federal flood insurance may be the only thing standing between you and financial disaster. Call us today to find out more about flood insurance.

• Flooding as a National Problem
• The Truth About Flood Insurance
• Amounts of Insurance Available

Flooding as a National Problem
Until the late 1960’s, most property owners were unable to get insurance against flood damage. Private insurance firms, aware of the potential for catastrophic losses, were unwilling to assume the financial risk alone. This put a burden on taxpayers to provide costly disaster relief to a growing number of flood victims.

In 1968, Congress addressed this issue by creating the National Flood Insurance Program (NFIP). This federal program provides flood insurance at a reasonable cost in exchange for the careful management of flood-prone areas by local communities.

Today, the NFIP serves over 4 million customers in over 18,000 communities across the country. It is administered by the Federal Emergency Management Agency (FEMA) through its Federal Insurance Administration.

To become eligible, a community first enters the emergency phase of the NFIP by adopting preliminary actions to reduce the threat of flooding. Everyone in the community can then apply for limited amounts of flood insurance at federally subsidized rates.

Much higher levels of insurance become available when a community qualifies for the regular phase of the program. This occurs after FEMA has conducted a detailed flood study and local officials have enacted more stringent measures to safeguard life and property from future flooding.

The Truth About Flood Insurance

Myth: “ It won’t happen to me.”
Fact: You don't have to live by water to be at risk. Approximately 30 percent of all flood claims occur in low to moderate-risk areas.

Myth: “My Homeowners insurance is enough.”
Fact: Homeowners insurance does not cover flood damage – federal flood insurance does. Flood insurance also covers mudflow, dirt and debris resulting from moving water.

Myth: “I don’t need flood insurance.”
Fact: Homeowners with mortgaged property in a Special Flood Hazard Area (SFHA) are now required by federal law to obtain flood insurance. Lenders must comply by requiring flood insurance on the outstanding mortgage balance for the life of the loan.

Myth: “The government will pay.”
Fact: To receive federal disaster assistance, a flood must first be declared a “federal disaster” by the U.S. President. Less than 50 percent of the floods that damage homes across the country every year wind up being classified a federal disaster. Myth: “Flood Insurance is expensive”Fact: Flood insurance is affordable. Flood damage is not. The average loss of property and contents from the 1993 Midwest flood was more than $25,000. Compare this to the average annual flood premium of just over $300.

Your coverage is based on your home’s value, minus your land value. Flood insurance up to $250,000 is available for residential buildings. Since Flood policies are backed by the U.S. government, all valid claims are 100 percent guaranteed!

Myth: “Flood insurance covers contents.”
Fact: Standard flood coverage does not cover the contents of your home. Separate Contents Coverage is available up to $100,000. Preferred Risk Policies for structures in low-risk areas offer a combination coverage up to $250,000 for a residence and $60,000 for its contents.

Amounts of Insurance Available
The following limits of insurance are available through National Flood Insurance Program. Check with Horn & Co. Insurance Services to determine whether your community is in the emergency or regular phase.

Contact us for more information on Flood Insurance,or submit a quote request today.

This is a general description of coverage and is not a policy contract. The policy itself should be read for your coverages and exclusions. Insurance coverage underwritten by the National Flood Insurance Program (NFIP) and administered by Farmers Insurance Group of Companies.