Top Ten Facts for Consumers

Overview of the National Flood Insurance Program (NFIP)

This document, published by FEMA in July 2009, outlines ten essential facts for consumers regarding the National Flood Insurance Program. It aims to clarify common misconceptions about flood risks and insurance coverage availability.

Key Facts for Homeowners and Renters

• Universal Risk: Everyone lives in a flood zone. Floods can be caused by storms, melting snow, hurricanes, drainage failures, or broken water mains. You do not need to live near water to be at risk.
• Homeowners Policies: Standard homeowners insurance does not cover flood damage. Separate flood insurance is required.
• Eligibility: Flood insurance is available regardless of flood risk level, provided the community participates in the NFIP.
• Preferred Risk Policy: A low-cost option is available for homes and businesses in low-to-moderate-risk areas.
  • Cost: As little as $119 per year for homeowners and $39 per year for renters.
• Affordability: About 90 private insurance companies offer affordable flood insurance backed by the federal government.
• Accessibility: Policies are easy to obtain through private companies and independent agents. Payment can be made with a credit card.

Coverage Limits and Details

• Residential Coverage: Homeowners can insure buildings up to $250,000 and contents up to $100,000.
• Renters: Renters can insure their belongings for up to $100,000. This coverage is separate from building coverage and is not automatically included (except under the Preferred Risk Policy).
• Non-Residential Coverage: Up to $1 million in total coverage is available for non-residential buildings and contents.
  • Building Limit: Up to $500,000.
  • Contents Limit: Up to $500,000.

Important Considerations

• Waiting Period: There is typically a 30-day waiting period before coverage goes into effect. Consumers are advised to plan ahead rather than waiting for a flood threat.
• Federal Disaster Assistance: This is not a substitute for insurance. Federal assistance is only available if the President declares a disaster and does not cover all losses. Flood insurance pays out even if a disaster is not declared.

Contact Information

For more information or agent referrals, the document provides the following contact details:

• NFIP Information: 1-800-427-4661
• Agent Referral: 1-888-435-6637
• TDD: 1-800-427-5593
• Websites: www. fema. gov/business/nfip and www. floodsmart. gov