FRANKFORT, Ky. -- Thousands of people who experienced flood losses in recent years had no flood insurance because they never thought they would need it. With the National Flood Insurance Program's (NFIP) low-cost Preferred Risk Policy, they don't have to take that risk.
Flood damage is not covered under most homeowner's policies. NFIP policies, including the special Preferred Risk Policy, fill the coverage gap. If a home is outside a high-risk flood area, this protection is available for as little as $180 a year, based on $50,000 of residential building coverage and $15,000 content coverage.
The Preferred Risk Policy provides the same coverage as a standard NFIP policy. A building's structural elements can be insured up to $250,000 and the contents of a home can be insured up to $60,000. Replacement cost coverage is also available for single family, primary residences.
“In recent years, floods have caused more than 60 percent of all property damage related to natural disasters,” noted Federal Coordinating Officer Michael Bolch of the Federal Emergency Management Agency (FEMA.) “When a flood occurs, there’s no guarantee that federal assistance will be available or that it will meet all your damage costs. Flood insurance gives you the peace-of-mind that you’re prepared for the worst.”
An insurance agent can provide information about the Preferred Risk Policy, or call the NFIP at 1-888-CALL-FLOOD. Internet information is available at: www.floodsmart.gov.
The NFIP makes flood insurance available in communities that adopt and enforce floodplain management ordinances to reduce future flood damage.
On March 1, 2003, FEMA became part of the U.S. Department of Homeland Security. FEMA’s continuing mission within the new department is to lead the effort to prepare the nation for all hazards and effectively manage federal response and recovery efforts following any national incident. FEMA also initiates proactive mitigation activities, trains first responders and manages the National Flood Insurance Program and the U.S. Fire Administration.