Flood Damage in Your Home Or Business

Having flood damage in your home or business is a catastrophe that most people are lucky enough to avoid. Unfortunately, it can happen to anyone at anytime.

A burst pipe, a leaky roof or appliance, a hurricane or strong storm. All of these scenarios are seen everyday around the world. If you think that it can never happen to you, you could be in for a horrible surprise.

Many homes don't carry flood insurance. After all, they don't live in a flood plain and aren't required to... so why spend the extra money? Many times flooding happens in areas that aren't used to seeing it. Just take a look at the last year and you will see several heartbreaking examples of this.

Homes that have been high and dry for decades, even centuries, are being inundated with water. Rivers swell, drainage fails... it is possible anywhere. Most homeowners mistakenly believe they are covered for a flood with their homeowners policy.

Most flooding that occurs from natural disasters isn't covered by your main policy. You need a separate policy for this and most times it will be purchased through the federal government.

First, begin by assessing your flood risk:

• Do you live in a flood prone area? Are you in a 100 or 500 year flood plain?
• Does you mortgage company require you to have flood insurance?
• Are all of your appliances in working order?
• Is your roof sound?
• Are you located in a well drained area

All of these are important factors to consider when you think about purchasing flood insurance.

But, what if you don't live in a flood plain and aren't required to purchase flood insurance by your mortgage lender? This is where it can be difficult.

It is so easy to feel like it could never happen to me. For most people, they are right, it won't. If it does though, you will want to make sure that you are covered. Purchase enough flood insurance so that any flood damage in your home or business is covered completely.

When you go to purchase it, you will be offered two choices. You may not necessarily be offered replacement coverage. Some choose to go the cheaper route.

If you do this, your items will be covered only for what they are worth at the time of the water damage. It won't cover the replacement value of the items. Some policies will also limit how old an item can be to be covered. Be sure to ask very specific questions when you purchase your policy to make sure that you are covered properly.

By preparing before damage happens, you will be providing your self peace of mind. Flood damage in your home or business can be devastating. By taking the right precautions now, you are protecting your future.

General Flood Insurance Cost

Check your home. If your plumbing fixtures and floor drains are below street level, there is a possibility of flooding even in your own home. If there is water damage due to heavy rain storms, sewer back-ups, or snow melt are not covered by home insurance policy.

The solution to these unavoidable problems is flood insurance. If you do not live in an area that has a designated flood zone by the FEMA, it is smart that you go out there and get one. But of course you have to consider the flood insurance cost.

Generally, flood insurance policies do not take effect in less than a month. It will only start after 30 days upon application. The premium payment that is indicated in the cost must be purchased because this is a necessity.

There are exceptions and you can discuss with the insurance agent about this so that you can get the additional information you need in the matter.

All residents are eligible to apply that is provided by the Federal Government. This is stated in the National Flood Insurance Program or the NFIP. The flood insurance cost depends on the insurance companies.

But know that the annual cost for flood coverage ranges from $200 to $2000. It depends on the designated flood zone by the FEMA. The coverage and cost also vary in the kind of homeowner that you are (Do you own the home?

Are you staying in a condo? Are you renting a home? Are you renting in a condo?) and the risk level of your area. (Is it high-risk, moderate risk, or low risk?)

Check out the Federal Disaster Areas in order for you to estimate the cost for your home. As declared by the President of the United States, anyone is eligible for federal assistance.

This is stated in the Disaster Relief and Emergency Assistance act. But you should know that less than half of all incidents concerning flood is declared to be a disaster and the people who are affected by the disaster area that is stated under federal law are eligible for low flood insurance cost.

There are many resources for you online to know about flood insurance cost. You can compare one insurance company to the next and see which one of their insurance policies and plans work better for you.

If this is within your budget and you can see yourself sleeping better at night with that kind of plan, then you can go for that policy and just pay the flood insurance cost that is required from you.

Houston Area Flood Insurance 2009

Hurricane season starts June 1st - November 30th and FEMA reports that everyone in Harris County lives in a flood zone. Even if you haven't flooded before, someone floods for the very first time every time there is a flood. Changes in residential building and infrastructure changes the run off of water that you may not be aware of. As little as a few inches of water and cause repairs such as replacing all the flooring, up to 5 feet high of sheetrock and insulation, plus the cost of fans to prevent mold growing as most insurance policies don't cover mold.

-Everyone lives in a flood zone. (For more information, visit floodsmart.gov
-Most homeowners insurance does not cover flood damage.
-Just an inch of water can cause costly damage to your property.
-Flash floods often bring walls of water 10 to 20 feet high.
-A car can easily be carried away by just two feet of floodwater.
-Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
-New land development can increase flood risk, especially if the construction changes natural runoff paths.
-Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
-It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
-Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
-Last year, one-third of all claims paid by the NFIP were for policies in low-risk communities.
-The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion.

Below are packaged prices for zones that don't have a history of flooding in Harris county, typically referred to as "non flood zones". This is a government policy so the price should be the same, no matter which company the policy is purchased from.

Building and Contents Coverage (Without Basement) for Harris County

Building................Contents.................Premium

$20,000.00.............$8,000.00...............$119.00

$30,000.00.............$12,000.00.............$148.00

$50,000.00.............$20,000.00.............$196.00

$75,000.00.............$30,000.00.............$230.00

$100,000.00...........$40,000.00.............$257.00

$125,000.00...........$50,000.00.............$277.00

$150,000.00...........$60,000.00.............$296.00

$200,000.00...........$80,000.00.............$326.00

$250,000.00...........$100,000.00...........$348.00

Get Protected Against Increasing Flood Activity

Homeowners all over the UK have had the frightening thought of how well they're covered in the event of flood damage to the most important of their personal assets; their home.

Thousands of families now find themselves dwelling in flood plains, and live with the looming threat that they can be hit with flood damage practically without warning. With the recent flood activity that's been experienced across the UK, and the ensuing damages that property owners have had to face; people have experienced a lot of difficulty attempting to find an insurance company that will provide flood risk insurance coverage. Increases in the number of areas facing possible flooding has increased over the years, and the number is expected to continue to grow with the erosion of the polar ice caps caused by global warming.

Flood insurance cover is vital in uncertain times when families can't afford the unexpected expense of replacing valuable assets. It is a common occurrence for a policy holder to experience devastation from a damaging storm that destroys their treasured belongings, and then receive heart breaking news from their insurance agent who has to tell them that they're not covered for much or all of their losses. Many insurance agencies do not offer sufficient quality flood risk insurance or fail to provide any flood insurance cover at all.

One Little Known Way to Save on Flood Insurance! Bet You'll Never Guess

A vast number of flood insurance policyholders are unaware of the discount Community Rating System (CRS) offered through the National Flood Insurance Program (NFIP) by FEMA; specifically, created to give participating communities direct discounts on policyholder's premiums.

One designation of the FEMA created CRS was to be used as an incentive program for communities around the nation to participate with the NFIP in order to take a more proactive stance against potential flooding within certain flood zones, as well as, an over all aggressive approach to floodplain management.

There are full compliance eligibility requirements for communities to be accepted and verified as a participant and which are regulated by FEMA.

The CRS is based upon a credit and classification system. There are 10 different classifications and every community starts with a Class 10 rating. From there, the community begins to gain credit points based on 18 different activities.

These 18 activities are divided into four main categories: Public Information, Mapping and Regulation, Flood Damage Reduction, and Flood Preparedness. FEMA sets the CRS classification based upon the credit points of each community.

This classification determines the premium discounts policyholders are entitled to. The premium discounts which should be applied to every policyholder's premiums range from 5 percent to 45 percent as recognition of the proactive floodplain management.

Hint: Over 80% of all property owners overpay for Flood Insurance!

During this economic crisis, which everyone is experiencing a budget crunch; it would be prudent of each flood insurance policyholder to request from their local agent a detail analysis of their premium calculation. Once received, the policyholder can inform their agent about the FEMA mandated discount structure and request a discount.

This is just one avenue to investigate to make sure that you the consumers are getting the best from the NFIP.

The 4 Simple Steps to follow to save on your insurance rates:

1. Request from your insurance agent a detail analysis of your premium calculation. Hint: Don't tell your agent why you want it!

2. Once you have your premium calculation in hand inform your agent of the FEMA mandated discount structure and request he/she look up the appropriate FEMA insurance discount so you can compare it to what you are actually paying.

3. Since you now know what you should be paying and if you are paying too much inform your insurance carrier (agent) and request the premium be lowered.

4. BIG HINT: You can also request a refund from your insurance carrier for overpayment.

You too can reduce your flood insurance costs, just take the time to follow these simple steps and enjoy!

Bet you never thought it possible to reduce, let alone Eliminate your expensive requirement for Flood Insurance. Did you?

Keep an eye open in upcoming articles as I will be explaining in a 2 part series or more in detail "How to Eliminate Your Flood Insurance Requirement". Just as a little teaser so you will stay up nights waiting for my upcoming lessons on Flood Insurance let me tell you I am batting 100%. That's Right! 100% of the time I have been able to Reduce or Eliminate your insurance requirement.

So...... if you want to Save Big on your Flood Insurance just watch for more "Ways to Save on Your Flood Insurance" and "How to Eliminate your Flood Insurance Requirement".

Coming Soon to an Article, Ezine Directory or Ebook provider near you!