When you review your monthly budget you may
be putting money aside for items such as groceries, rent, clothing, and
your gym membership, but have you ever listed flood damage on your
budget? According to a spring 2010 edition of the Western Pennsylvania
AAA Motorist magazine, flooding is the most prevalent natural disaster
and you are 3 times more likely to be affected by flooding then fire. We
certainly hear about the floods that reach the magnitude of the horrible
May 2010 disaster in Nashville, but flooding comes in all sorts of
Except for vehicles with "comprehensive" insurance in their policy,
flood damage is not part of typical insurance coverage, and everyone is
at some level of risk of financial loss due to flood damage. You can be
the most financially conservative person, but one flash flood could
severely harm you, financially speaking. The average flood damage claim
is $33,000.00. Most people will not have that much money set aside, even
before a natural disaster hits. Also, nearly all disaster relief money
is considered a loan and must be paid back to the issuing authority.
Fortunately, there are steps you can take to protect yourself and
quickly recover and a flooding disaster.
Here are facts found from FEMA's and the CDC's websites:
Why should you be concerned about flooding?
-Only flood insurance will cover flood damage.
-25% of all flooding claims come from moderate to low risk areas.
-You do not need to be next to a body of water for flooding to occur on
-Melting snow / poor drainage / deteriorating natural or man made
barriers are just a few of the least expected sources of flooding.
-All 50 states have been affected by flooding.
-While risks vary, according to
www.FloodSmart.gov, we all live in a
Considering buying flood insurance? Keep an eye on what is going on with
this program. Flood insurance is issued by the National Flood Insurance
Program and funding must be approved by Congress. Currently, funding for
the National Flood Insurance Program is scheduled to stop in September
Insurance Information Institute
In the absence of any legislative agreement between the House and the
Senate on funding the program for the long term, the NFIP was
reauthorized for short periods of time under a series of continuing
resolutions that extended funding for many different programs. After
allowing the program to lapse four times, during which new policies
could not be issued, leaving homeowners without the option of buying
coverage and delaying thousands of real estate closing per day in
flood-prone regions, in September 2010, as the last extension was close
to its expiration date, both the House and the Senate extended the
program for one year to September 30, 2011. Insurers hope that during
this longer extension period Congress will take time to make significant
and long-term changes in the program.