Before floodwaters lap at your front door, make sure your financial security isn’t in danger of being washed away.
Floodwaters can be a nasty cocktail of water, mud, sewage, animal waste and chemicals. A flood can ruin your home and belongings. Without flood insurance, you’re on your own to pay for damage caused by flooding.
Many Portland homeowners have a false sense of security because they believe that their homeowner’s insurance covers flooding. But most policies don’t. It’s important to check with your agent and review your policy. Ask if you’re covered for flood and water damage.
Other people believe that federal disaster assistance will help them. This assistance often comes in the form of a low interest loan to help cover flood damage. It will not compensate for your losses.
Plus, low interest loans are only available if the federal government formally declares a disaster. Only about 10 percent of floods are declared disasters, according to National Flood Insurance Program (NFIP) officials. That’s not a gamble you want to take!
There’s only one way to rest easy during wet months- purchase flood insurance through the NFIP. You must live in a community that participates in the NFIP to qualify for National Flood Insurance. Visit http://www.fema.gov/fema/csb.shtm to find out if your community participates in the program.
You may buy the insurance through your local Portland insurance agent. You might be surprised how inexpensive it is. Rates depend on whether you live in a low-to-moderate or a high-risk flood zone as well as the amount of coverage you need.
You may believe you don’t need flood insurance because you live in a low-risk area. Almost a quarter of all flood insurance claims come from areas with low-to-moderate flood risk. Those living in low-risk areas may qualify for the lower cost Preferred Risk Policy, which provides contents coverage beginning at $39 per year and building plus contents coverage starting at $119 a year.
Don’t wait to shore up your financial security until it’s too late. There is a 30-day waiting period for flood insurance to take effect.
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