How To Know And Lower Your Risk For Flood Loss

Nearly 8 million structures across the country are located in high-risk flood areas, and yet more than half of homeowners living in these areas (known as Special Flood Hazard Areas, or SFHAs) are in considerable financial jeopardy because they aren't covered by flood insurance.

"An SFHA home has a 26 percent chance of being flooded over a 30-year period, as compared to a 9 percent chance of suffering a fire. Flooding in these high-risk areas could, has and will occur. Please, talk to your insurance agent and take the necessary steps to financially protect your home-your most important investment-with flood insurance," said David I. Maurstad, FEMA's Mitigation Director and Federal Insurance Administrator.

Flood insurance is available in more than 21,000 communities across the country. Residents who live in an SFHA are required to purchase flood insurance if they have a loan from a federally regulated lender. Property owners without mortgages, and also renters, may not be affected by this regulation, but are just as much at risk of flooding and need to consider financial protection through flood insurance.

Do You Know These Facts About Flood Insurance?

• Homeowners insurance typically does not cover flood damage.

• The average premium for a residential flood insurance policy is approximately $500 a year.

• You can purchase federally backed flood insurance in amounts up to $250,000 for a structure and $100,000 for its contents. Contents coverage is not automatically included in a flood policy.

• The National Flood Insurance Program has paid more than $32 billion in claims since 1978.

• Floodwaters don't stop at a line on a flood map. Even if you live outside of an SFHA, you are still at risk. Outside of high-risk areas, coverage can start as low as $112 a year.

How Can You Determine Your Flood Risk?

Federally backed flood insurance can protect your most important investment-your home.

You can find your relative flood risk online at FloodSmart.gov. From there, click on "What's Your Risk" and simply enter your property address to see your risk and find links to area flood maps and other flood insurance community resources. To learn how to purchase a National Flood Insurance Policy, and the benefits of protecting your home and property against flooding, visit www.Flood Smart.gov or call (800) 427-2419.

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