Here's What To Tell Your Clients About The Benefits of Flood Insurance vs. Disaster Assistance
| Flood Insurance | Disaster Assistance | |
|---|---|---|
| You are in control. Flood insurance claims are paid even if a disaster is not declared by the President. | Most forms of federal disaster assistance require a Presidential declaration. | |
| Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas. | Federal disaster assistance declarations are awarded in less than 50% of flooding incidents. | |
| There is no payback requirement. | The most typical form of disaster assistance is a loan that must be repaid with interest. | |
| Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses. | The duration of a Small Business Administration (SBA) disaster home loan is approximately 30 years. | |
| Flood insurance reimburses you for all covered losses up to $250,000 for homeowners and $500,000 for businesses. | The average Individuals and Households Program award is about $4,000. | |
| The average cost of a $100,000 flood policy is a little more than $400 annually, or just over one dollar per day. The cost of a $50,000 flood policy may be as low as $180 annually, depending on where you live, or less than 50 cents per day. | Repayment on a $50,000 SBA disaster home loan is $240 a month or $2,880 annually at 4% interest. |
To order The Benefits of Flood Insurance vs. Disaster Assistance as a stuffer for client mailings, call 1-800-480-2520 and ask for form #F-216.
For additional information, contact us at: 1-800-427-4661, TDD 1-800-427-5593.
Last Modified: Thursday, 04-Jun-2009 12:03:01 EDT