| If you live in a high risk flood area your home has a | | | | month and put it into a savings account for when |
| 26% chance of suffering flood damage at some point | | | | disaster strikes. Chances are, you're going to be able |
| over the course of your thirty year mortgage. That | | | | to put a lot more away in what you save each month |
| means that there is a 26% chance that you're going to | | | | than you'll ever have to pay out for damages. |
| need to file a homeowners claim using your flood | | | | LOSS MITIGATION |
| insurance, which means that there is a 26% chance | | | | Secondly, mitigate your losses. In English that translates |
| that your insurance company is going to have to pay | | | | to doing everything you can to minimize the damage |
| out a claim. | | | | that your home will suffer if (and when) Mother Nature |
| They hate having to do that. | | | | decides to turn Main Street into her own personal |
| Because insurance companies are in the business of | | | | swimming pool. This reconstruction can be expensive, |
| making money they want to minimize the chances that | | | | but it will save you a bundle on your home insurance |
| they're going to have to pay out a claim. That can | | | | and go a long way toward keeping your home livable |
| take the form of denying you flood insurance | | | | after a flood. |
| altogether or raising their premiums and deductibles so | | | | FEMA and the National Flood Insurance Program (a |
| high you're almost better off putting the money into a | | | | branch of FEMA dedicated to providing flood |
| savings account and paying the bill personally when | | | | insurance in high risk areas) recommend that you raise |
| disaster strikes. Fortunately, there are steps you can | | | | your utility connections and electrical outlets well above |
| take to lower the premiums on your flood insurance | | | | ground, seal your basement with waterproofing |
| (and boost your chances of obtaining coverage if you | | | | compounds and, if floods are a regular "thing" in your |
| live in a high risk area). | | | | part of the world, consider elevating and reinforcing |
| PREMIUMS AND DEDUCTIBLES | | | | your home's structure. |
| First and foremost, keep in mind that there is a direct | | | | "Not only does mitigation save life and property, a |
| relationship between your deductible and your | | | | mitigated home may also qualify for lower-cost flood |
| premiums when it comes to your flood insurance. | | | | insurance, made available through the National Flood |
| While no one wants to have to pay a ridiculous | | | | Insurance Program," stated federal coordination official |
| deductible if their home is damaged in a flood after | | | | Anthony Russell following severe flood damage in |
| spending years paying their homeowners insurance in | | | | Washington State in 2003. |
| good faith, if you can afford an extra two to three | | | | If you live in an area prone to flood damages flood |
| hundred dollars in deductibles your can dramatically | | | | insurance is going to become an important part of your |
| lower your annual premium. Keep in mind that by | | | | life. Don't let your home and your family suffer by not |
| raising your deductible you are actually electing to take | | | | making the investment. |
| the money you're saving on your premiums each | | | | |