Flood Insurance Benefits Outweigh Costs

Thousands of under-insured homeowners in the pathmight not be required.
of Hurricane Katrina learned first-hand the financialHowever, lower risk doesn't mean that you shouldn't
devastation of flooding. Every home in the Uniteddiminish the opportunity for severe flooding. Evolving
States has a one in four chance of experiencing someweather patterns offer areas that historically have
type of flood damage every three decades accordingpredictable precipitation and storm patterns
to the Federal Emergency Management Agencyexperiencing record rainfalls and flash flooding that
(FEMA). With the increase in global warming, morehaven't implemented wide ranging flood control
intense storms with their severe flooding will alter theinfrastructure. Flood damage can also be caused by
financial future of those with no or minimal insuranceoverwhelmed storm sewer systems backing up into
for rising waters.your home.
Flood zones are categorized by FEMA by theirRates for policies vary from two to seven hundred
likelihood to experience flooding based on adollars a year, based on your flood risk level. Plans
once-in-a-century model that states a flood having arestrict coverage amounts to $250,000 for structures
one-percent chance of being equaled or exceeded inand $100,000 in personal property. Florida leads the
any year. Areas rated an "A" are at the highest riskcountry with the largest number of flood insurance
and all potential mortgage lenders offering a loan in anpolicy holders. The visual images of the homes in the
"A" flood zone will require the borrower to obtain floodpath of Katrina should offer a stark reminder of why
insurance. Locals labeled "B", "C", "D", "V" and "X" carryflood insurance in a benefit not a cost.
lower risks and the possibility that mandatory insurance