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6 Facts on Flood Insurance


FACT 1: Floods are the most common and costly natural disaster in the United States. FACT 1: Floods are the most common and costly natural disaster in the United States. According to the National Flood Insurance Program (NFIP) since 1978, the NFIP has paid nearly $52.5 billion dollars in flood insurance claims.

FACT 2: Flood insurance is not mandatory for homeowners living outside of a high-risk flood area. Even if you do not live in a high-risk flood area, if even less than 1 foot of water fills your home, it can cause over $39,000 in property damages. In addition, the WI DNR states that flooding in the state of WI is not only caused by rising levels in lakes and streams but also by broken water mains, blocked drainage systems, rapid snow melt, periods of heavy rain in a short amount of time and ice jams. If you don’t know if you live in a floodplain or could be at risk to a flood in your community, you can check here, https://browncounty.maps.arcgis.com/apps/webappviewer/index.html?id=a1a7597cc64640089cb4a00968c62e08

FACT 3: According to FEMA’s NPIF Fact Sheet in 2016, “Residents and business owners who own property in high-risk areas (sometimes referred to as Special Flood Hazard Areas [SFHAs]) are required to purchase flood insurance if they have a mortgage from a federally regulated or insured lender.” They also must carry the insurance for the life of the mortgage. Residents and business owners with a mortgage on a building outside high-risk areas can also purchase flood insurance and may be eligible for lower-cost Preferred Risk Policies. With or without a mortgage, there are options available.

FACT 4: Federal Disaster Assistance is not a guarantee. The President of the United States must declare a major disaster before most forms of federal disaster assistance can be offered. If the community where you live is declared by the President as a disaster area, you will get relief from floods usually in the forms of loans which must be paid back and means you are still responsible for the entire cost of your damages and losses.

FACT 5: Most homeowner’s and renter’s insurance doesn’t cover flood damage. According to the Insurance Information Institute’s (III) article, Facts about Flood Insurance, floods are not covered under homeowners and renters’ policies. Only a specific flood insurance policy will cover home flood related losses. III also states that there is still a 30-day waiting period before a flood insurance policy takes effect. Thus, it is better to be prepared ahead of time to help ease the recovery process should your family and home be affected by a flood disaster.

You can protect your family and businesses from floods by knowing how to prepare yourselves in case of a flood disaster and know what flood insurance coverages and options are available to you. Contact our office to learn more about flood insurance.


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