travel news: Flood Insurance: Some Things to Consider

The United States has its fair share of natural disasters, and flooding is no exception. The federal government established the National Flood Insurance Program in 1969 to help protect homeowners against food damage. If you are not covered by flood insurance, you could suffer catastrophic losses during a flood.

?Price of Coverage

Your flood insurance premium is determined in part by the risk of flooding to your area. Homeowners who live in high risk flood zones will pay more for flood insurance than those living in low-risk flood areas. You can find out what flood zone your property is located in by typing your address in at www.floodsmart.gov. There is no predetermined price for flood insurance. There are several factors that affect your cost for coverage including what flood zone your home is located in, the age of your home, your deductible amount and the amount of flood coverage you buy. The best way to determine the cost of flood insurance is to get a quote from an insurance agent approved by the NFIP.

Lowering Your Cost for Flood Insurance ?
There are some ways for you to lower the price you pay for flood insurance. If you live in a flood zone, elevating your home could reduce your rates. If possible, you could also relocate your house to an area of your property that is on higher ground and above the flood base elevation. Of course, choosing a higher deductible will also lower your flood insurance premium.

Do You Need Flood Insurance??
Flood insurance is not just for homeowners in high risk flood zones. Flooding can occur in areas that do not normally flood when rivers and streams overflow banks. If you are buying a home, your mortgage company may require you to purchase separate flood insurance. Your homeowner's policy provides no flood coverage.

Eligibility
Your local community must participate in the NFIP program for you to purchase flood insurance. Communities participating in the NFIP program must implement measures to reduce the risk of future flooding. When a community enters the NFIP program, FEMA conducts a yearlong study to evaluate flood plains. The results of these studies are used in rating flood insurance policies. If you are not sure if your community participates in the NFIP program, ask for FEMA's Community Status Book which gives a list of communities participating in the program. It also lists communities that have been suspended from the program or withdrew from the program voluntarily. Your local insurance agent is a good resource to find out more about your community's NFIP status.

What is Covered?
Damage to your dwelling structure caused by flooding is covered by your flood insurance policy. A mobile home is an eligible structure as long as it is anchored to a permanent foundation. Contents and personal belongings kept inside your home can also be covered but you must purchase contents coverage separately.

What is not Covered

Structures not attached to your home including sidewalks, driveways, lawns, gardens and other land are not covered against damage by your flood insurance policy. Automobiles, business personal property of others and floating structures, such as houseboats, are not covered.

Where to Buy Flood Insurance

The NFIP allows insurance agents who are certified in flood insurance to sell policies to homeowners. You can locate an approved insurance agent at the NFIP website, www.Floodsmart.com.