Windsor, Conn. -- While flood insurance is not mandatory for homeowners outside of a high-risk area, anyone can be financially vulnerable to floods. People outside of high-risk areas file more than 25% of NFIP claims and receive one-third of disaster assistance for flooding. Residential and commercial property owners who are not located in high-risk areas should ask their agents if they are eligible for the Preferred Risk Policy, which provides affordable flood insurance protection, starting as low as $129 a year.
More Myths and Facts About Flood Insurance
Myth: If you live in the “100-year floodplain,” that means there is only going to be one big flood every 100 years. You don’t really need insurance, since the flood risk is relatively small.
Fact: The term “100-year floodplain” means that every single year there is a 1-in-100 chance of a flood. NFIP now calls areas where flooding is most likely to occur “Special Flood Hazard Areas.”
Myth: You can't buy flood insurance if you are located in a high risk flood area.
Fact: Anyone can buy flood insurance through the NFIP no matter where you live, as long as your community participates in the NFIP.
Myth: You can buy flood insurance immediately before or during a flood.
Fact: If there is a flood already in progress, you can’t buy flood insurance. In most cases, there is a 30-day waiting period after you’ve applied and paid the premium before the policy is effective.
Myth: Flood insurance is only available for homeowners, not renters.
Fact: Flood insurance can provide up to $100,000 of coverage for the contents of any residential building, which includes the contents of a renter’s residence.
Myth: You can’t buy flood insurance if your property has been flooded.
Fact: You are eligible to purchase flood insurance for property anywhere if your community participates in the NFIP
Myth: Homeowners insurance will pay to repair and replace property that is damaged by flooding.
Fact: Many standard homeowner policies exclude any coverage due to water damage from flooding.
Myth: Only residents of high risk flood zones need to insure their property.
Fact: Roughly one-third of NFIP insurance claims involve property not located in an area identified as a high risk zone.
Myth: Federal disaster assistance will pay for flood damage.
Fact: If a flood is declared a federal disaster, federal assistance might pay for part of the damage but may not cover everything.
For additional information or to locate an agent who sells flood insurance in your area, call 888-379-9531 or visit www.FloodSmart.gov.
FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.