Why do I need flood insurance when I can get disaster assistance?
With flood insurance
- You are in control. Flood insurance claims are paid even if a disaster is not declared by the President.
- Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas. Federal disaster assistance declarations are not awarded in all flooding incidents.
- There is no payback requirement. The most typical form of disaster assistance is a loan that must be repaid with interest.
- Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses. The duration of a Small Business Administration (SBA) disaster home loan could extend to 30 years.
- Flood insurance reimburses you for all covered building lossed up to $250,000 and $500,000 for businesses. Contents coverage is also available up to $100,000 for homeowners and $500,000 for businesses. The average Individuals and Households Program award for Presidential disaster declarations related to flooding in 2008 was less than $4,000.
- The average cost of flood insurance policy is a little more than $500 annually. The cost of a preferred risk policy is less than $200 annually, depending on where you live. Repayment on a $50,000 SBA disaster home loan is $240 a month of $2880 annually at 4% interest.
The benefits of having a flood insurance far outweigh depending on disaster assistance. For all of your PA insurance needs, contact our office at www.TheWeimerGroup.com.