National Flood Insurance - Phoenix Business Group

Phoenix Business Group
Consumer Advocacy Services

NATIONAL FLOOD INSURANCE COVERAGE AVAILABLE TO HOMEOWNERS

In the wake of the floods that struck Pennsylvania beginning January 18, disaster officials are reminding homeowners that they may purchase flood insurance coverage through the National Flood Insurance Program (NFIP) administered by the Federal Insurance Administration, a part of the Federal Emergency Management Agency (FEMA).

"Year in and year out, flooding is the leading cause of property loss from natural disasters in this country," said FEMA Director James Lee Witt. "But all too often, homeowners learn after the fact that protection against flood loss is not part of their normal insurance protection package."

Witt pointed out that there are about 11 million buildings located in designated flood hazard areas in the United States, yet less than 23 percent of them are insured against floods.

Flood insurance is available only to residents of communities which have agreed to adopt and enforce sound floodplain management practices. Some 2,435 Pennsylvania cities and towns have done so.

To find out whether a community is participating in the NFIP program, homeowners can call the NFIP general information toll-free hotline:

1-800-427-4661

Benefits of NFIP coverage include:

Eligibility for secured financing to buy, build or improve structures in special flood hazard areas - Lending institutions that are federally regulated or insured must see evidence of NFIP coverage before they grant secured financing.
Protection against being uninsured in the event of a flood Standard homeowners insurance policies do not compensate for flood damage.
Less expensive than federal disaster loans Average annual premiums for NFIP coverage are significantly less expensive than loan payments, even when those loans are granted under favorable terms. Also, flood damage from events that are not federally declared disasters is still covered by NFIP policies.
Reduced risk of flooding buildings substantially damaged by flood, if rebuilt to NFIP new construction standards, have less risk of damage from flooding and are eligible for NFIP coverage at a reduced rate.

Homeowners who carry national flood insurance are covered for any flood-related damage to the ground level or upper floor(s) of their homes. Coverage for flood-caused damage to basements is limited to certain features such as oil, gas, and water tanks and appliances.

Flood insurance coverage is available for residential buildings, as well as for contents. If you have a home business, a separate NFIP policy is necessary to cover its structural or contents damage. These policies may be purchased from individual insurance agents and brokers, as well as directly from the NFIP.

Back to the Information page.

Back to the Home page.

[ Real Property ] [ Consulting Services ] [ Owners ] [ Managers ] [ Realtors ]
[ Contractors ] [ Soil Engineers ] [ Inspectors ] [ Building Designers ] [ Appraisers ]
[ Structural Engineers ] [ Architects ] [ Lenders ] [ CPAs/Tax Preparers ] [ Public Relief ]
[ Friends & Families of Disaster Victims ] [ Photo Gallery ] [ Insurance ] [ Property Insurance Services ]
[ Public Insurance Adjusters ] [ Attorneys ] [ Other Professionals ] [ Healthcare ]
[ HMO/Health Insurer Honesty & Accountibility Act ] [ California Senate Bill 1283 ]
[ California Consumer Health Care Council ] [ The Law ] [ Laws & Regulations ] [ Proposed Legislation ]
[ Links To Other Resources ] [ About Us ]