August 25, 2015 2:12 am
Having flood insurance through the National Flood Insurance Program (NFIP) can save homeowners and renters thousands of dollars in repairs from flood damage. Homes located outside flood-prone areas need flood insurance, too. Nationally, 25 percent of the total structures that flood each year belong to policyholders whose properties are not in high-risk areas.
Flood insurance is available to homeowners and renters in communities that participate in the NFIP and enforce their local flood plain management ordinances. To determine if a community participates in NFIP, visit www.floodsmart.gov. Homeowners in a Special Flood Hazard Area (SFHA) must buy flood insurance if they have a mortgage from a federally regulated lender. When obtaining flood insurance, keep in mind there is normally a 30-day waiting period when purchasing a new policy.
Homeowners can insure their homes for up to $250,000 and contents for up to $100,000. Renters can cover their belongings in amounts up to $100,000. Flood insurance premiums average about $700 a year for homeowners.
Published with permission from RISMedia.