Cedar Rapids Yellow Pages & Directory

What can and cannot be insured against flood loss

Wed, 02 Jul 2008 23:30:00 -0400

What types of property may be insured against flood loss?
Almost every type of walled and roofed building that is principally above ground and not entirely over water may be insured if it is in a participating community. In most cases, this includes manufactured (i.e., mobile) homes that are anchored to permanent foundations and travel trailers without wheels that are anchored to permanent foundations and are regulated under the community's floodplain management and building ordinances or laws. (However, this does not include converted buses or vans.) Contents of insurable walled and roofed buildings also may be insured under separate coverage.
What kinds of property are not insurable under the NFIP?
Buildings entirely over water or principally below ground, gas and liquid storage tanks, animals, birds, fish, aircraft, wharves, piers, bulkheads, growing crops, shrubbery, land, livestock, roads, machinery or equipment in the open, and most motor vehicles are not insurable. Most contents and finishing materials located in a basement or in enclosures below the lowest elevated floor of an elevated building constructed after the FIRM became effective are not covered. (See "Coverage" section for coverage limitations in basements and below lowest elevated floors.) Information on the insurability of any special property may be obtained by contacting a property insurance agent or a broker.

http://www.fema.gov/business/nfip/fiprobyr.shtm#24

Flood Insurance Information

Wed, 02 Jul 2008 22:00:00 -0400

Quoted from the following link.

http://www.floodsmart.gov/floodsmart/pages/faqs_considering.jsp#considering3

"Doesn't my homeowners insurance policy cover flooding?
No. Flood damage is not typically covered by a homeowners insurance policy.

If my home is flooded, won't federal disaster assistance pay for my damages?
No. Federal disaster assistance often comes in the form of a low interest loan to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the president formally declares a disaster.

Am I eligible for flood insurance?
You must live in a community that participates in the National Flood Insurance Program (NFIP) to qualify for National Flood Insurance. Find out if your community participates in the NFIP and the kinds of NFIP resources available in your community.

(Added: List of communites in Linn County that participate in the NFIP)
CITY OF ALBURNETT
CITY OF CEDAR RAPIDS
CITY OF COGGON
CITY OF ELY
CITY OF FAIRFAX
CITY OF HIAWATHA
CITY OF LISBON
CITY OF MARION
CITY OF PALO
CITY OF ROBINS
CITY OF WALKER

Link for reference:

http://www.fema.gov/cis/IA.pdf

Can I get flood insurance if I'm renting a property?
If you live in a community that participates in the NFIP, you can get flood insurance to cover the contents of your home or business.

I live in a low-risk flood zone. Do I really need flood insurance?
Most likely, yes. It's a good idea to buy flood insurance even if you live in a low- or moderate-risk area. Almost 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk. You may qualify for the Preferred Risk Policy (a lower-cost flood insurance policy) that provides contents coverage beginning at $39 per year and building plus contents coverage beginning at $119 a year.

Why do I need flood insurance, even though my community has never been flooded?
Flooding occurs in low-to-moderate risk areas as well as in high-risk areas. Poor drainage systems, rapid accumulation of rainfall, snowmelt, and broken water mains can all result in flood. Properties on a hillside can be damaged by mudflow, a covered peril under the Standard Flood Insurance Policy.

Structures located in high-risk flood areas have a significant chance (26 percent) of suffering flood damage during the term of a 30-year mortgage. A home mapped in a high-risk area is five times more likely to suffer damage from a flood than a fire in the lifetime of a typical mortgage!

For these reasons, flood insurance is required by law for buildings in high-risk flood areas as a condition of receiving a mortgage from a federally regulated or insured lender.

Why does my mortgage lender require me to buy flood insurance?
Under federal law, the purchase of flood insurance is mandatory for all federal or federally related financial assistance for the acquisition and/or construction of buildings in high-risk flood areas (Special Flood Hazard Areas or SFHAs).

The amount of flood insurance coverage required by the Flood Disaster Protection Act of 1973, as amended by the National Flood Insurance Reform Act of 1994, is the lesser of the following:

The maximum amount of NFIP coverage available for the particular property type,
The outstanding principal balance of the loan, or
The insurable value of the structure.
If the property is not in a high-risk area, but instead in a low-to-moderate risk area, federal law does not require flood insurance; however, it is recommended since historically about one-in-four flood claims come from these low-to-moderate risk areas. Note that if during the life of the loan the maps are revised and the property is now in the high-risk area, your lender will notify you that you must purchase flood insurance.

Is there a low-cost policy for homes in low-to-moderate risk areas?
Yes. The Preferred Risk Policy is available in low-to-moderate risk areas for as little as $119 per year.

I'm not in a high-risk area, but I'd like flood coverage. Is this possible?
Yes! You are eligible to purchase a flood policy with the same coverage you would receive if you lived in a high-risk area. That is, of course, as long as your community participates in the NFIP. And you may qualify for the Preferred Risk Policy (a low-cost flood insurance policy) that provides contents coverage for as little as $39 per year and for as little as $119 per year for both building and contents coverage.

I live in a high-risk risk area. After my home was damaged in a flood, I received federal disaster assistance. Do I need to purchase flood insurance now?
Yes. If you live in an SFHA and have received disaster assistance in the form of a federal grant or loan, you must cover the building for flood insurance for as long as you own it. Should you sell the building, you are required to inform the new owner of the necessity to purchase and maintain flood insurance. Failure to carry flood insurance could result in the denial of future federal disaster assistance.

Who do I contact if I want to purchase a flood insurance policy?
The National Flood Insurance Program has an arrangement with private insurance companies to sell and service flood insurance policies. A list of private insurance companies that sell and service NFIP flood insurance policies is available to you.

You may also contact your insurance agent or company to find out more about federal flood insurance or find an agent serving your area by filling out the Flood Risk Profile to the left.

What if I want to purchase more insurance than the NFIP offers?
Many private insurance companies offer Excess Flood Protection, which provides limits over and above those of the NFIP. For more information, contact your insurance agent or company."

Hazard Mitigation Information

Tue, 01 Jul 2008 23:00:00 -0400

Robert T. Stafford Disaster Relief and Emergency Assistance Act,
Public Law 93-288, as amended, 42 U.S.C. 5121-5207,
and Related Authorities
UNITED STATES CODE
TITLE 42. THE PUBLIC HEALTH AND WELFARE
CHAPTER 68. DISASTER RELIEF

Sec. 404. Hazard Mitigation (42 U.S.C. 5170c)*
(a) In General - The President may contribute up to 75 percent of the cost of hazard
mitigation measures which the President has determined are cost-effective and
which substantially reduce the risk of future damage, hardship, loss, or suffering in
any area affected by a major disaster. Such measures shall be identified following
the evaluation of natural hazards under section 5165 of this title and shall be
subject to approval by the President. Subject to section 5165 of this title , the total
of contributions under this section for a major disaster shall not exceed 15 percent
for amounts not more than $2,000,000,000, 10 percent for amounts of more than
$2,000,000,000 and not more than $10,000,000,000, and 7.5 percent on amounts of
more than $10,000,000,000 and not more than $35,333,000,000 of the estimated
aggregate amount of grants to be made (less any associated administrative costs)
under this Act with respect to the major disaster.
(b) Property acquisition and relocation assistance -

What a Presidential Disaster Declaration affects the national Flood Insurance Program

Thu, 26 Jun 2008 20:54:04 -0400

1. When a major flooding event occurs resulting in a Presidential disaster declaration, how does this affect the NFIP?
Although a Presidential disaster declaration is not required for an NFIP policyholder to file a claim, it may provide
additional options to the policyholder to mitigate or prevent future damages. The policyholder may gain valuable
information from his or her local officials about mitigation opportunities which may become available as a result of
the Presidential disaster declaration.

2. What are examples of mitigation opportunities that may become available following a Presidential disaster declaration?
When major flooding disasters have affected a region, it is common for communities and individuals to consider relocation,
acquisition or elevation of flood-damaged structures. Property owners who sustained extensive damages are often very
interested in avoiding the recurrence of such an experience. The feasibility of such mitigation projects must be
established on a case-by-case basis. It is important for a flood insurance policyholder to be aware of these possibilities
and contact local officials to learn as much as possible.

3. Are there any specific programs available associated with a Presidential disaster declaration to assist with mitigation?
Yes, the Hazard Mitigation Grant Program, authorized under Section 404 of the Robert T. Stafford Disaster Relief and
Emergency Assistance Act is FEMA's primary hazard mitigation program designed to assist States and communities in
implementing long-term hazard mitigation measures following a major disaster declaration. States manage this program
and may set State-specific project criteria. Individuals with questions should contact their local officials for more
information. Through the Small Business Administration, loans may be available to qualifying applicants to assist with
the costs of mitigation. Due to the need to coordinate many activities following Presidential declarations, it is
important for individual citizens to raise their questions and concerns about these post-disaster mitigation opportunities
with their local community officials.