Flood Insurance
The city participates in the National Flood Insurance Program (NFIP). FEMA provides the studied community with a Flood Insurance Rate Map (FIRM) delineating base flood elevations and flood risk zones. These flood elevations have been adopted into city ordinance. Zoning Code §160.02, 160.40
As of May 2010, the city had 109 flood insurance policies enforce, with a coverage amount of over 15.2 million dollars. Total premiums were just over $60,000.
To put this into perspective, there are approximately 28,700 structures in the city and 1,940 structures of which are located in a flood hazard area. Although anyone can purchase flood insurance, only 109 policies have been purchased.
The city now participates in the NFIP Community Rating System and was awarded a Class 8 recognition affording residents and business that have or purchase flood insurance a price reduction in their premiums.
So, who needs flood insurance? Everyone. Everyone in a participating community of the National Flood Insurance Program (NFIP) can buy flood insurance. There are more than 19,000 communities nationwide participating in the Program.
Myths and Facts about the National Flood Insurance Program (NFIP)
Myth: You can’t buy flood insurance if you are located in a high-flood-risk area.
Fact: You can buy National Flood Insurance no matter where you live if your community participates in the NFIP, except Coastal Barrier Resources System (CBRS) areas. In fact, lenders must require borrowers whose property is located within a Special Flood Hazard Area (SFHA) to purchase flood insurance as a condition of receiving a federally regulated mortgage loan
Myth: You can’t buy flood insurance immediately before or during a flood.
Fact: You can purchase flood coverage any time. There is a 30 day waiting period after you’ve applied and paid the premium before the policy is in effect, with the following exceptions: 1) If the initial purchase of flood insurance is in connection with the making, increasing, extending or renewing of a loan, there is no waiting period. The coverage becomes effective at the time of the loan, provided application and payment of premium is made at or prior to loan closing. 2) If the initial purchase of flood insurance is made during the 13th month period following the effective date of a revised flood map for a community, there is a one day waiting period. This only applies where the Flood Insurance Rate Map (FIRM) is revised to show the building to be in a Special Flood Hazard Area (SFHA) when it had not been in an SFHA.
Myth: Homeowners insurance policies cover flooding.
Fact: Unfortunately, many homeowners do not find out until it’s too late that their homeowners policies do not cover flooding.
Myth: Flood insurance is only available for homeowners.
Fact: Flood insurance is available to protect homes, condominiums, apartments and nonresidential buildings, including commercial structures. See above information regarding limits of coverage. Contents coverage is also available to renters.
Myth: You can’t buy flood insurance if your property has been flooded.
Fact: You are still eligible to purchase flood insurance after your home, apartment or business has been flooded, provided that your community participates in the NFIP.
Myth: Only residents of high-flood-risk zones need to insure their property.
Fact: Even if you live in an area that is not floodprone, it’s advisable to have flood insurance. Between 20 – 25% of the NFIP’s claims come from outside high-flood-risk areas. The NFIP’s Preferred Risk Policy, available for just over $100 per year, is designed for residential properties located in a low to moderate flood risk zone
Myth: National Flood Insurance can only be purchased through the NFIP directly.
Fact: NFIP flood insurance is sold through private insurance companies and agents, and is backed by the Federal government
Myth: Federal disaster assistance will pay for flood damage.
Fact: Before a community is eligible for disaster assistance, it must be declared a federal disaster area. Federal disaster assistance declarations are issued in less than 50% of flooding incidents.
Myth: The NFIP does not offer any type of basement coverage.
Fact: Yes it does. The NFIP defines a basement as any area of a building with a floor that is below ground level on all sides. While flood insurance does not cover basement improvements, such as finished walls, floors or ceilings, or personal belongings that may be kept in a basement, such as furniture and other contents, it does cover structural elements, essential equipment and other basic items are covered under building coverage, and some are covered under contents coverage. The NFIP encourages people to purchase both building and contents coverage for the broadest protection.
The following items are covered under building coverage, as long as they are connected to a power source and installed in their functioning location:
- Sump pumps
- Well water tanks and pumps, cisterns and the water in them
- Oil tanks and the oil in them, natural gas tanks and the gas in them
- Pumps and/or tanks used in conjunction with solar energy
- Furnaces, hot water heater, air conditioners and heat pumps
- Electrical junction and circuit breaker boxes and required utility connections
- Foundation elements
- Stairways, staircases, elevators and dumbwaiters
- Unpainted drywalls and sheetrock walls and ceilings, including fiberglass
insulation
- Cleanup
The following items are covered under contents coverage:
- Clothes washers and dryers
- Food freezers and the food in them
Myth: Wind-driven rain is considered flooding.
Fact: No, it isn’t. Rain entering through wind damaged windows, doors or a hole in a wall or the roof, resulting in standing water or puddles, is considered windstorm, rather than flood, damage. Although the Standard Flood Insurance Policy (SFIP) specifically excludes wind and hail damage, most homeowners policies provide such coverage
For more information about the NFIP, ask your insurance agent or company,
or call the NFIP’s toll-free number at
1-888-CALL-FLOOD ext. 304 – TDD# 1-800-427-5593
or visit FEMA’s website at:
