Protect Yourself From Natural Disasters With Adequate Insurance

An editorial in the Seattle Post-Intelligencer urges that since the ‘06-’07 winter flood season kicked off with record-breaking rain in the Northwest, we ask ourselves, as a nation, what we can do to mitigate the impact of floods and mudflows.

We can’t control the weather - that’s a given.

But what we can control is the level of financial protection that homes, businesses and communities have against the potentially disastrous consequences of floods caused by heavy rains and again by melting snow.

The most important thing Americans can do is make sure that 100 percent of properties at the highest risk for flooding — those located in Special Flood Hazard Areas — are protected with flood insurance.

Special Flood Hazard Areas received that designation because history, hydraulics and hydrology show that significant floods have occurred and will occur in the area. Banks and mortgage lenders require home buyers in SFHAs to get flood insurance in order to get a mortgage.

But it’s not just those with home mortgages who are at risk.

People who own their homes or businesses outright and renters also need to assess the risk and protect themselves with flood insurance on top of regular homeowner’s insurance. Not to do so is shortsighted and extremely dangerous, especially because the average annual cost of flood insurance, even in the highest-risk areas, is around $500.

To put that in perspective, individuals can financially secure their homes and businesses at a cost roughly equivalent to a year’s subscription to cable television. There’s no reason to put your home - and your ability to pay the home mortgage loan - at risk just to save $500 a year.

But what will it take to bring this integral hazard insurance coverage in Special Flood Hazard Areas up to 100 percent?

A solid grass-roots effort will require a real commitment from three critical groups: community leaders and local officials, real estate professionals and insurance agents. They all have crucial roles to play in educating the public about flood risks and in encouraging people to protect their properties adequately. The message can’t come from FEMA and the National Flood Insurance Program alone.

While we work together to achieve 100 percent coverage in SFHAs, we should also be aware that 20-25 percent of all insurance claims made annually come from low- to moderate-risk areas. When it comes to winter floods, water doesn’t pay attention to man-made floodplain boundaries.

The fact is, floods happen everywhere in the U.S. From November 2005 to April 2006, federally declared flooding disasters occurred in eight states from California to North Dakota, causing flood damage to thousands of households. As the nation enters into yet another active winter flood season, Americans need to act now to ensure they are protected before the floods and mudflows strike.

The National Flood Insurance Program is committed to doing its part. Every single NFIP flood insurance policy represents someone who has made the smart decision by buying flood insurance.

It also represents a legal promise by the NFIP and Congress that in the event of a flood, their claim will be paid.