Spring Showers Will Soon Bring Floods as Well as Flowers Will Your Home and Belongings Be Protected?

Apr 24, 2001, 01:00 ET from Insurance Information Institute

    NEW YORK, April 24 /PRNewswire/ -- Most Americans live or work in areas
 that have some risk of flooding.  Flooding is caused by a number of conditions
 including hurricanes and severe storms, overflowing rivers or tidal waters,
 heavy rain, mudslides, levee failure and snowmelt.  About 90 percent of
 natural disasters involve flooding in one way or another. Unfortunately, many
 people still don't understand the importance of flood insurance, according to
 the Insurance Information Institute (I.I.I.).
 
     With spring showers just around the corner, now is the time for
 homeowners, renters and businesses to purchase flood insurance.  To help
 people understand the importance of flood insurance, the I.I.I. offers the
 following facts:
 
     -- Homeowners insurance does not cover flood damage.  Only flood insurance
        will cover your losses in the event of a flood. Insurance for
        homeowners, renters and businesses is available, however, through the
        National Flood Insurance Program.
     -- Don't wait to obtain a flood insurance policy.  If your community
        participates in the National Flood Insurance Program, you are eligible
        to purchase flood insurance.  Remember that there is a 30-day waiting
        period before your coverage takes effect, so don't delay.
     -- Floods and flash floods occur within all 50 states. Everyone is
        vulnerable to flooding, no matter where they live or work.  In fact,
        the National Flood Insurance Program says that one out of four flood
        claims come from outside high flood risk areas.
     -- Flood insurance policies can be purchased from licensed insurance
        agents.  Flood insurance is available through the Federal Emergency
        Management Agency's (FEMA) National Flood Insurance Program (NFIP). It
        is sold via the more than 90 participating insurance companies that
        write and service policies through a special arrangement with the
        Federal Insurance Administration (FIA), as well as through thousands of
        insurance agents nationwide.  Contact your insurance agent for details
        or call the NFIP at 1-800-427-9662.
     -- Flood insurance cost.  The average nationwide premium for an NFIP flood
        insurance policy is $364 per year.  The average coverage amount is
        approximately $130,000. The maximum coverage amounts are $250,000 for a
        single-family dwelling and $100,000 for its contents.  Maximum coverage
        for businesses is $500,000 for a building and $500,000 for its
        contents.  For homes in lower-risk areas with no history of flooding, a
        preferred-risk policy may be purchased for $106 (no basement) or $131
        (with basement) for $25,000 worth of coverage.  To find out more
        information about flood insurance, contact the NFIP at:
        http://www.fema.gov/nfip/cost.htm or their toll-free number at
        800-427-4661.
     -- Disaster aid is only available in federally declared disaster areas.
        Before most forms of federal disaster assistance are made available,
        the President must declare the area a major disaster -- and only a
        small minority of all flooding incidents are Presidentially declared.
        Flood insurance claims are paid even if the President does not declare
        a disaster.
     -- Federal disaster assistance usually comes in the form of a loan.  If
        your area is declared a disaster, low-interest loans are available from
        the federal government. But these loans are just that -- loans -- and
        must be paid back, with interest.  Obtaining a flood insurance policy
        is the only way to truly protect yourself from flood losses.
 
     For specific coverage information, call your insurance professional or the
 National Insurance Consumer Helpline at (800) 942-4242.
 
     The Insurance Information Institute is a non-profit, fact-finding and
 communications organization sponsored by the property/casualty industry.
 
 

SOURCE Insurance Information Institute
    NEW YORK, April 24 /PRNewswire/ -- Most Americans live or work in areas
 that have some risk of flooding.  Flooding is caused by a number of conditions
 including hurricanes and severe storms, overflowing rivers or tidal waters,
 heavy rain, mudslides, levee failure and snowmelt.  About 90 percent of
 natural disasters involve flooding in one way or another. Unfortunately, many
 people still don't understand the importance of flood insurance, according to
 the Insurance Information Institute (I.I.I.).
 
     With spring showers just around the corner, now is the time for
 homeowners, renters and businesses to purchase flood insurance.  To help
 people understand the importance of flood insurance, the I.I.I. offers the
 following facts:
 
     -- Homeowners insurance does not cover flood damage.  Only flood insurance
        will cover your losses in the event of a flood. Insurance for
        homeowners, renters and businesses is available, however, through the
        National Flood Insurance Program.
     -- Don't wait to obtain a flood insurance policy.  If your community
        participates in the National Flood Insurance Program, you are eligible
        to purchase flood insurance.  Remember that there is a 30-day waiting
        period before your coverage takes effect, so don't delay.
     -- Floods and flash floods occur within all 50 states. Everyone is
        vulnerable to flooding, no matter where they live or work.  In fact,
        the National Flood Insurance Program says that one out of four flood
        claims come from outside high flood risk areas.
     -- Flood insurance policies can be purchased from licensed insurance
        agents.  Flood insurance is available through the Federal Emergency
        Management Agency's (FEMA) National Flood Insurance Program (NFIP). It
        is sold via the more than 90 participating insurance companies that
        write and service policies through a special arrangement with the
        Federal Insurance Administration (FIA), as well as through thousands of
        insurance agents nationwide.  Contact your insurance agent for details
        or call the NFIP at 1-800-427-9662.
     -- Flood insurance cost.  The average nationwide premium for an NFIP flood
        insurance policy is $364 per year.  The average coverage amount is
        approximately $130,000. The maximum coverage amounts are $250,000 for a
        single-family dwelling and $100,000 for its contents.  Maximum coverage
        for businesses is $500,000 for a building and $500,000 for its
        contents.  For homes in lower-risk areas with no history of flooding, a
        preferred-risk policy may be purchased for $106 (no basement) or $131
        (with basement) for $25,000 worth of coverage.  To find out more
        information about flood insurance, contact the NFIP at:
        http://www.fema.gov/nfip/cost.htm or their toll-free number at
        800-427-4661.
     -- Disaster aid is only available in federally declared disaster areas.
        Before most forms of federal disaster assistance are made available,
        the President must declare the area a major disaster -- and only a
        small minority of all flooding incidents are Presidentially declared.
        Flood insurance claims are paid even if the President does not declare
        a disaster.
     -- Federal disaster assistance usually comes in the form of a loan.  If
        your area is declared a disaster, low-interest loans are available from
        the federal government. But these loans are just that -- loans -- and
        must be paid back, with interest.  Obtaining a flood insurance policy
        is the only way to truly protect yourself from flood losses.
 
     For specific coverage information, call your insurance professional or the
 National Insurance Consumer Helpline at (800) 942-4242.
 
     The Insurance Information Institute is a non-profit, fact-finding and
 communications organization sponsored by the property/casualty industry.
 
 SOURCE  Insurance Information Institute