Little Rock, AR -- Every year, more homes in the United States are damaged by floods than any other natural disaster, a fact brought home this spring by Arkansas flooding. Having a flood insurance policy, available to everyone who lives in a community that participates in the National Flood Insurance Program (NFIP), is the best way to help begin the process of recovering from a flood.
In exchange for their careful management of flood-prone areas, communities participating in the NFIP are offered flood insurance. Jason Donham is the Arkansas Floodplain Manager. Names of the eligible communities may be secured from Donham at 501-682-3907.
Premiums are reasonable - in most cases, about $1 a day per $100,000 in coverage, and they can now be paid by VISA or MasterCard, as well as by cash, check and money order or through an escrow account established by the mortgage lender.
Check with your insurance agent to begin the process of obtaining NFIP flood insurance. If he or she cannot write this insurance, or you don't have an agent, call the NFIP's toll-free number, 1-888-CALL FLOOD, ext. 445, to obtain the name of an agent in the area who does write flood insurance.
Flooding causes more than $2 billion in property damage each year, and losses due to flooding are not covered under most homeowners or business policies. The time to prepare for a disaster is now, not when the damage is done.
For example, in Crittenden County in the City of West Memphis, there are currently 683 NFIP policyholders with a coverage of $51,158,100. Claims paid in that city since 1978 total 509 with the cost of premiums $326,755 per year and total claims paid $3,340,055. These claim payments came from NFIP premiums.
Another example is Conway County where there are 55 current NFIP policyholders with a coverage of $3,462,800. Claims paid in the county since 1978 total two with the cost of premiums $22,111 per year and total claims paid $8,769.
So by buying flood insurance, Americans are able to "pay their own way" if disaster strikes. And that is a good example.
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