Clean Up Documents to Download
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Myth 1: Flood insurance is only available to those in high-risk
flood zones.
Fact: As long as your community belongs to NFIP (except in Coastal
Barrier Resources System areas), you can and should purchase flood
insurance. NFIP’s Preferred Risk Policy, designed for properties
located in low-to-moderate flood risk zones, is usually available
for less than $200 a year. Insurance agents or mortgage lenders
who have questions regarding flood insurance may contact NFIP’s
office at (888) 379-9571.
Myth 2: 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. The thresholds necessary
to meet requirements to qualify for federal assistance are usually
not met during localized flooding events. While limited state
assistance may be available, it does not cover the damage to your
structure or its contents. In addition, if you are uninsured and
received federal disaster assistance after a flood, you are
required to purchase flood insurance in order to receive disaster
relief in the future.
Myth 3: Homeowner insurance policies cover flooding.
Fact: Most homeowner’s policies do not cover damage from
flooding. Unfortunately, most homeowners realize this too late.
NFIP provides insurance coverage for events traditionally not
covered under homeowner’s policies. Flood insurance
policyholders should also be aware of the Increased Cost of
Compliance coverage, which is designed to help homeowners take
steps required to reduce future flood damage to their homes or
businesses. The coverage, mandated under the National Flood
Insurance Reform Act of 1994, may pay up to $30,000 to offset
costs associated with flood-proofing, elevating, demolishing or
relocating buildings that are substantially damaged or subject to
repetitive flood loss. Please note that you can purchase NFIP
flood coverage at any time, however, there is a 30-day waiting
period after you’ve applied and paid the premium.
Myth 4: Flood insurance is only available for homeowners.
Fact: Homeowners, renters and business owners with property in
communities that participate in the NFIP can purchase flood
insurance to protect homes, condominiums, apartments and
non-residential structures, including commercial structures.
Myth 5: NFIP coverage is available statewide.
Fact: NFIP coverage is only available to communities participating
in NFIP. Find out if your community is a member by calling your
insurance company or by calling NFIP at 1-888-RAIN or (924)
724-6924. You may also view a list of participating Georgia
communities at www.fema.gov/cis/ga.pdf.
Communities that agree to manage flood hazard areas by adopting
minimal standards can participate in NFIP. If a community does not
participate in the program, property owners will be unable to
purchase federally backed flood insurance. If your community is
not participating, contact your local government leaders to
express your interest in the program.
Myth 6: Making claims against your flood insurance policy will
result in your rates being increased or policy cancelled.
Fact: Rates are set by federal government each year and cannot go
up. Policies cannot be cancelled.
Myth 7 Only residents located in high risk flood zones should
insure their property.
Fact: Since flooding can be caused by heavy rains, inadequate
drainage systems, failed dams, or tropical storms and hurricanes,
purchasing flood insurance is advised even if you live in an area
that is not flood-prone. One-third of NFIP’s claims come from
outside special flood hazard areas. NFIP’s Preferred Risk
Policy, available for as little as $80 per year, is designed for
residential properties located in low to moderate flood-risk
zones. To determine if your property is located in a floodplain,
contact your city or county government building or planning
department or the Georgia Department of Natural Resources
Environmental Protection Division’s Floodplain Management Office
at
(404) 656-6382.
Myth 8: You can’t buy flood insurance if your property has
been flooded.
Fact: It doesn’t matter if your property has been flooded. You
are still eligible to purchase flood insurance provided your
community is participating in NFIP. In fact, to get secured
financing to buy, build or improve structures in Special Flood
Hazard Areas (SFHA), you will be required to purchase flood
insurance. Lending institutions that are federally regulated or
federally insured must determine if the structure is located in a
SFHA and must provide written notice requiring flood insurance.
Myth 9: Federal flood insurance can only be purchased directly
through the NFIP.
Fact: Federal flood insurance is sold and serviced directly
through NFIP or through a write-your-own (WYO) company. WYO
companies write and service policies on a non-risk bearing basis
through a special arrangement with the Federal Insurance
Administration. Review participating companies in Georgia at
www.floodsmart.gov.
Myth 10: Flood insurance is expensive.
Fact: The average flood insurance premium in Georgia is under $500
a year. Your specific premium will be determined by such factors
as where you live, how much coverage you choose, the age,
elevation and structure of your home, the building occupancy, and
the deductible. This is much more affordable than payments for
disaster loans or the costs of removing flood debris and repairing
and replacing carpet, drywall and electrical systems. Additional
information on NFIP may be found at www.floodsmart.gov.
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