Fero Insurance Articles

Flooding happens every day in all regions of the country. Consumers must prepare for flooding no matter
where they live. The Northeast can be affected by remnants of tropical disturbances in the summer, but are
also threatened by winter flooding, nor'easters, and the threat of rapid spring melts. The Midwest experiences
major river flooding - illustrated by the catastrophic floods of 1993 and 2008. The west coast's intense flooding
season typically spans November through March and results in millions of dollars in damage for residents
each year.
Many consumers think that flooding related to hurricanes and other tropical disturbances are limited to coastal
areas. However, some of the most damaging flooding can happen well inland and days after a storm makes its
initial landfall. In 2007, Ohio, which has no ocean coastline, received more than $44 million in flood insurance
payments.
Although many floods are caused by huge storms like hurricanes or nor'easters, more floods occur every day
and can result from small, localized events, such as a typical afternoon thunderstorm. No matter where you
live, it is important to remember that just a few inches of water in a home can cause thousands of dollars of
damage.

Flood Insurance Misconceptions

Flooding is the United States #1 natural hazard. The National Flood Insurance Program wants consumers to
know that while homeowner's insurance won't cover them against flooding, they can protect their home and
property by purchasing a flood insurance policy separately through their local insurance agent.
Many people are under the misconception that they are ineligible for flood insurance because of where they
live, or their mortgage status. But the truth is, as long as your hometown is an NFIP community, most
homeowners, business owners and renters can get flood insurance. The NFIP urges consumers to remember
the flood insurance basics:
" You CAN get flood insurance nationwide.
" You CAN get flood insurance if you live in a floodplain or high-flood-risk area.
" You CAN get flood insurance if you live outside a floodplain, or a low-to-moderate flood-risk area, - and at
lower cost.
" You CAN get flood insurance if your property has been flooded before.
" You CAN get flood insurance from insurance agents in your area.
" You CAN buy flood insurance even if your mortgage broker doesn't require it.
Armed with the proper information about their flood risk and protection options, consumers can make more
informed decisions to protect their financial investments.

Lower Cost Options

The price of a flood insurance policy ranges depending on where a property is located. In high flood risk areas,
where coverage is often mandatory, policies cost more. However, most of the country falls within the low- to
moderate-risk areas for flooding.
In low- to moderate-risk areas, where the risk of flooding is still very real, customers have lower cost flood
insurance options available in the form of the NFIP's Preferred Risk Policies (PRP). 20 to 25 percent of all
flood insurance claims are filed in low- to moderate-risk areas.
For as little as $119 a year, homeowners can insure their property against flooding. Many consumers don't
know that the new PRP policies are also available to business owners and renters. Customers have the option
to purchase building coverage, contents coverage, or both.
Building policies start at $20,000 and go up to $250,000. Contents coverage starts at $8,000 and goes up to
$100,000.

Source: National Flood Insurance Program