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Many homeowners are unaware of the fact their homeowner insurance policy does not protect them against damages caused by Flood. Broken pipes and the damage caused by the homes water or plumbing system are covered, and water damage caused by damage to the roof may be covered, but damages caused by a flood are not. Flood insurance protection is available from the federal government under the National Flood Insurance Program.
In 1968 Congress created the National Flood Insurance Program (NFIP) due to the rising cost of taxpayer-funded disaster relief for flood victims and an increase cost for the damages caused by floods nationally. The NFIP makes federally backed flood insurance available in communities that agree to adopt and enforce floodplain management ordinances to reduce future flood damage. The NFIP is self-supporting for the average historical loss year. This means that unless there is a widespread disaster, operating expenses and flood insurance claims are financed through premiums collected.
NFIP coverage is available to all owners of insurable property such as a building and, or its property contents. The insurance coverage is available only in participating communities NFIP. Nearly all of the nation’s communities with serious flooding potential have joined the NFIP. The NFIP provides a listing of participating communities in the Community Status Book. To learn if a community participates in the NFIP, refer to this listing online at http://www.fema.gov/fema/csb.htm or contact a community official or insurance agent
According to a RAND Corporation study conducted for the Federal Emergency Management Agency (FEMA), nationwide about 49 percent of single-family homes in special flood hazard areas (SFHAs) are covered by flood insurance from the National Flood Insurance Program. In the South and West the percentage is higher, about 60 percent. However, outside of the high-risk areas there is a steep drop—off in coverage. Only about one percent of homeowners in non-SFHAs purchase it.
You may contact the National Flood Insurance Program and find more information at their website:
FEDERAL INSURANCE ADMINISTRATION
500 C St., SW Washington, DC 20472
phone: 202-566-1600
fax: 202-646-7970
Web: http://www.fema.gov
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