For Immediate Release.
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I’ve never been flooded before...
Why is Flood Insurance Important?
Many Missourians live near water and have never experienced flooding. More to the point, many people living in a floodplain feel the federal government will help them recover from a flood event. Flood insurance is not part of your basic homeowner’s insurance policy. So why is flood insurance important?
Spring rains and snow melt often produce localized flooding. Severe storms can cause localized flash flooding. Only 10 percent of all flooding disasters receive a Presidential Declaration -- which means there is limited financial assistance for citizens.
"Why is flood insurance important? Flood insurance pays flood related claims regardless of a Presidential Disaster Declaration. In localized flooding, residents with flood insurance can repair their homes, replace their possessions, and recover faster than people without flood insurance,"(Mayor or Floodplain Administrator) said.
In 1993, it was estimated that 216,000 Missourians lived in the floodplain; yet there were only 22,000 flood insurance policies in force. Those figures roughly translate into 1 in 10 Missourians had flood insurance.
A common misconception is that flood insurance is expensive and federal assistance is free. In a federally declared disaster, the Federal Emergency Management Agency (FEMA) offers help for temporary housing, minimum essential repairs and disaster unemployment insurance. During the 1993 floods, the average Individual and Family Grant was $2,500. Many Missouri businesses and private citizens had to obtain low-interest Small Business Administration loans just to start repairing their property and replacing their possessions.
In 1998, Missouri received two Presidential Declarations for flooding. The July 1998, severe rains caused basement flooding to citizens outside Flood Zone A in St. Louis City, St. Louis County and areas of Jackson County. Approximately 3100 citizens called the telaregistration number for recovery assistance. The average Individual and Family Grant for citizens who suffered damages from the July flooding was $991.
Twelve citizens died in the October, 1998, severe rains and flooding in Kansas City. Metropolitan Kansas City covers all or parts of Jackson, Clay, Platte and Ray Counties. Almost 3100 residents who didn’t live in Flood Zone A called for federal assistance. The average Individual and Family Grant was $1277.
The cost of a $50,000 flood insurance policy is $166 annually, depending on where you live, or less than 50 cents per day. Over an 18 year repayment period, the borrower can expect to pay approximately $320 a month for a $50,000 SBA low-interest home damage loan.
"I don’t need flood insurance, I’ve never been flooded before," is a common statement from people who don’t buy flood insurance. Consider the fact that more buildings, roads and parking lots are built on what was once forests and meadows. If the water can not be soaked up by the ground, the water’s runoff can cause flooding to new areas that historically never flood.
How Do I Get Flood Insurance?
Because you live in (Community Name), one of the 554 Missouri NFIP participating communities, you may purchase federally-backed flood insurance from your insurance agent -- the same one that sells the basic homeowner policy, (Mayor or Floodplain Administrator) said.
As a participating community, (Community Name) agrees to regulate development in the 100-year floodplain which should reduce the community’s vulnerability to flood damage. For example, developers might be required to elevate the lowest floor of buildings at least one foot above flood stage.
(Floodplain Administrator’s Name) , is the floodplain administrator and administers local floodplain ordinances. (Floodplain Administrator’s Name) may issue permits for variances to the floodplain ordinances.
For Immediate Release.
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Missouri Floods Are Costly for Those Caught Unprepared
Major flooding in Missouri can occur at any time of the year and cause millions of dollars of damage over a wide area. "Flood insurance helps businesses and private citizens recover after a flood," said (Mayor or Floodplain Administrator) .
While severe flooding usually comes in cycles, it is not limited to certain decades or areas, the National Weather Service warns. Between 1993-1999, Missouri received 11 Presidential Declarations for Flooding that exceeded local and state response capabilities. Each year Missouri communities experience numerous localized flooding events that do not merit a federal disaster declaration.
If there is no federal disaster declaration, flood insurance is the only financial protection for personal losses. Flood insurance is not provided in the basic homeowner's, business or tenant's policy. It can be purchased through your local insurance agent in participating communities.
In Missouri, 554 flood-prone cities and counties participate in the National Flood Insurance Program (NFIP). When a county enters the NFIP, it agrees to regulate floodplain management and also makes flood insurance available in unincorporated areas of that county.
"Homeowners then have the option to buy the insurance or remain at risk to floods without any coverage," (Mayor or Floodplain Administrator) said.
Residents need not live in an actual floodplain to be exposed to the hazard of serious flooding, said George Riedel, Manager of State Emergency Management Agency’s Floodplain Management section. Forty percent of all flood insurance claims, he said, are paid for damages to property not located in the floodplain. "This is storm water coming down the hills - an inundation of generally dry land," he said.
Some Missouri communities have not yet joined the NFIP. In those areas, flood insurance cannot be purchased. If your community is not participating, urge your elected officials to apply for eligibility, Riedel said.
Here are some other important facts about the National Flood Insurance Program.
* Homeowner’s insurance policies do not offer protection against flood losses.
* Homeowners, business owners and renters can purchase flood insurance as long as their community participates in the NFIP.
* You do not have to live in a high-risk flood area (or floodplain) to buy flood insurance. In fact, 25 percent of all flood insurance claims come from medium or low risk flood areas.
* If you live in a high risk flood area, you are four times more likely to have a flood than a fire during the term of a 30-year mortgage.
* You can buy flood insurance from any licensed insurance agent. You may call 1-800-720-1093 for a referral to an agent or agents near you.
* Flood insurance coverage is available for residential and business structures and contents. A single family home can be insured for up to $250,000. An additional $100,000 can be purchased for contents. Commercial buildings can be insured for up to $500,000. Business contents can be covered for up to $500,000.
* If you have a home-based business, you’ll need to purchase separate coverage for the business and/or contents. Coverage is not automatically included under a homeowner’s flood insurance policy, even if the business is located inside your home.
* Renters can purchase contents coverage for up to $100,000 to cover personal belongings.
* There is a 30 day waiting period from the time of the initial premium is paid until the time the policy becomes effective. This waiting period is waived at the time of a real estate closing if the policy is purchased prior to the closing.
* A flood insurance policy reimburses you to certain limits for actions taken to prevent flood damages. These actions can include moving the insured contents to a safe place and/or the cost of purchasing sandbags, plastic sheeting, lumber, pumps etc.
* Flood insurance claims are paid regardless of a federal disaster declaration.
* Flood insurance will reimburse you for your covered losses and never has to be repaid, unlike a disaster assistance loan.
* Flood insurance claims are handled quickly so that flood victims can recover faster.
* Flood insurance claims are paid by policyholder premiums, not tax dollars.