Is Your Flood Insurance Ending?

I returned to work today from a long family vacation.  During the course of our journeys we had the opportunity to drive on Highway 2 near Nebraska City, where one lane of the road was underwater due to flooding of the Missouri river.  We later had to detour because on highway 136 near Alexandria, Missouri, because the the road leading Keokuk, and  a bridge over the Mississippi river, was under water.  While these areas are prone to flooding and it makes obvious sense to buy flood insurance, other places aren't so obvious, yet FEMA, with flood mapping help from the US Army Corps of Engineers and others, places many housing tracts in 100 year flood plains, thus requiring homeowners with mortgages to purchase flood insurance.  Wise property owners with buildings in flood plains will purchase this same insurance whether or not they have a mortgage.
I witnessed the destruction of flooding earlier this year when a flood hit my hometown of Genesee, ID in January 2010 due to frozen ground, melting snow, and heavy rains.  If you think a flood can't happen to you, think again.

One of the brokers that I utilize recently sent me an e-mail stating that State Farm Mutual has announced that effective October 1, 2010 they are getting out of the National Flood Insurance Program business.  This means that hundreds of thousands of insureds will need to find a new company for their flood insurance.  Do you have flood insurance with State Farm Mutual?  If so, please allow me to serve you and place your flood insurance with one of our flood insurance companies.

How do you do this?  Give me a call at my Clarkston, WA office; (509) 758-5529 or e-mail me.  I will ask you for a copy of your declarations page, the year the home or building was constructed, and its replacement cost value.

It really is that simple.  I look forward to serving you!

Do You Really Need Flood Insurance?

According to the Federal Emergency Management Agency (FEMA), flooding can cause several billion dollars of property damage in the United States each year. If you are like many homeowners, however, you may be unaware that the standard homeowners insurance policy you buy does not cover flood losses. You may believe that you have a low risk to this peril but FEMA reports that approximately 25 percent of all flood claims occur in communities in which flooding is deemed to be a low to moderate risk. So do you really need a separate flood policy? The following tips and ideas may prove helpful in answering this question.

• Contact your insurance agent to see if you live in a community that participates in the National Flood Insurance Program (NFIP), a prerequisite in order to qualify for flood insurance. Participating communities must agree to adopt and enforce certain floodplain management regulations, including building construction and zoning laws that minimize the risks of flood damage.


• Ask your insurance agent to see if you are in a floodplain. Or, if you prefer, go to http://www.floodsmart.gov/ and select “What’s Your Flood Risk?” which will ask you to enter your home address. This Web site will then specify whether you are in a low, moderate, or high risk area.


• Consider purchasing flood insurance even if you are in a low-to moderate-risk community. In these areas, you may be eligible for the Preferred Risk Policy, with premiums as low as $112 per year including coverage for your personal property.


• Note that a flood policy does not take effect until 30 days after you purchase the coverage. Thus, if the local meteorologist announces a flood alert for your community and you try to purchase coverage, it is already too late.


• The maximum limit of insurance in the NFIP for your home itself is $250,000. If your residence’s value exceeds this amount, ask your insurance agent about excess insurance for losses above the federal policy’s maximum limits.


• Don’t assume that the government will bail you out if you suffer a flood loss and don’t have a flood insurance policy. That decision is a gamble you may not win. Remember that federal disaster assistance, if available, is usually a loan that must be paid back with interest.


• Discuss all the pros and cons of flood insurance with your agent before making your final decision.