| Disasters usually have a way of reminding us of | | | | that their homes are much more likely to be flooded |
| important lessons. In late-summer 2005, that disaster | | | | than be destroyed by fire. |
| was Hurricane Katrina, and the lesson was to always | | | | And in the case of Katrina, flooding wasn't the only |
| be prepared. | | | | damage to homes and businesses. Looting and fires |
| Out of the rubble of the Gulf Coast region emerged a | | | | ended up destroying many possessions. |
| lack of preparedness on a variety of levels. On a | | | | Prices depend entirely on the amount of coverage you |
| basic level, most citizens lacked flood insurance, even | | | | wish to purchase and the area your home is located in. |
| though New Orleans is a city surrounded by water. In | | | | The "average" cost of flood insurance is about $438 |
| fact, it was estimated that between only 30-40% of | | | | for a year. Costs for the insurance can range from |
| residents hit by Katrina had any form of flood | | | | around $2,000 a year in a flood-prone area for |
| insurance. In some places, this number was even | | | | $250,000 in building coverage with $100,000 coverage |
| lower. | | | | for the contents. If you simply live near a flood zone, |
| Many policyholders do not realize that basic | | | | instead of in it, the prices for $35,000 in building |
| homeowners insurance does not include protection | | | | coverage and $10,000 for the contents will cost about |
| from flood damage. Instead, the Federal Emergency | | | | $300 a year. This is for people who live in a low to |
| Management Agency (FEMA) administers flood | | | | medium risk area. |
| insurance through a federal program. | | | | Recently, flood insurance providers in South Carolina |
| In many cases, if your home is in a high-risk area for | | | | and California, two flood-prone areas, have received a |
| flooding, you must get flood insurance in order to get a | | | | large increase in calls asking about flood insurance |
| mortgage. In the wake of Katrina and later, Hurricane | | | | policies. This may be a sign that the disaster in the Gulf |
| Rita, many called for flood insurance to become | | | | has helped to remind people of the need for |
| mandatory in high and even medium-risk areas. Just as | | | | preparation. |
| auto insurance is required by the government, flood | | | | Flood insurance may not be right for you, and you may |
| insurance could be too. Increased participation would | | | | not live in a high-risk area. But at any given moment, |
| also mean much lower rates, the more people who | | | | many formerly safe areas can be flood-prone and the |
| sign up, the cheaper the insurance is. | | | | results can be devastating. Hurricanes Katrina and Rita |
| Flood insurance is actually quite affordable. But that | | | | have taught us all to be more prepared in the event of |
| has yet to increase its popularity. According to | | | | a disaster and one of the best ways to make sure |
| insure.com, only one-quarter of the most vulnerable | | | | your home and possessions are safe, is to buy flood |
| homes are insured, even though statistics have shown | | | | insurance. |