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LOUISIANAAGENT
National Flood Insurance Program I already have homeowners insurance. Most homeowners insurance does not cover floods. It does, however, cover fires. Now consider this: in a highrisk area, your home is more than twice as likely to be damaged by a flood than by fire. Floods? That's what disaster assistance is for. Available only when the President declares a disaster, Federal disaster assistance is usually a loan that you must pay back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 per year) for 30 years, in addition to your mortgage loan that you still owe on the damaged property. Plus you would need to buy and maintain flood insurance for the life of the loan. Compare that to the average premium for flood insurance coverage, which is about $600 a year (and even less outside of high risk zones). Plus, when you submit a flood insurance claim, you are compensated for all covered losses whether or not a disaster has been declared - and you do not have to pay it back.
I live on a hill and am not at risk. If you live on a hill or in an area that has never been flooded, your risk may be significantly reduced, but it is not eliminated. Aside from major storms like hurricanes and tropical storms, flooding can be caused by heavy rains, melting snow, inadequate or clogged drainage systems, and failed protective devices such as levees and dams. I do not live in a flood zone. Everyone lives in a flood zone - it is just a question of whether you live in a moderate-to-low or high risk area. While flood insurance is required in high risk areas, people outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. Flood insurance is too expensive. The average flood insurance premium is about $600 a year (less than $48 per month). If you live in a moderate-to-low risk area, you may qualify for a Preferred Risk Policy with a premium starting at $129 per year. Considering that even a few inches of water can cause tens of thousands of dollars in damage, the annual premium is well worth the financial protection from floods.
