Oxendine reminds consumers abut importance of flood insurance

Atlanta (March 14, 2008) – National Flood Safety Awareness Week is March 17-21, and Insurance Commissioner John W. Oxendine wants to remind Georgians that a flood policy can be a valuable addition to standard homeowners’ coverage.

   “Purchasing flood insurance is an important consideration for Georgia consumers, even if you think a flood is unlikely in your area,” Oxendine said. “Between 20 and 25 percent of flood claims occur in areas considered medium or low-risk for floods.”

   Oxendine said flood coverage is federally backed by the National Flood Insurance Program. Flood insurance is available for up to $250,000 for damage to your home. A standard flood policy will cover the basic structure as well as the furnace, water heater, air conditioner, floor surfaces (carpeting and tile) and debris clean up. 

   For an additional premium, you also may buy flood coverage for up to $100,000 damage to the contents of your home. Coverage is available up to $500,000 for non-residential buildings and their contents. 

   According to the Federal Emergency Management Agency (FEMA), the average flood insurance policy costs a little more than $400 a year for about $100,000 of coverage. The actual cost to you will depend upon where you live and the amount of coverage you choose. 

   You can buy NFIP flood insurance directly from your property and casualty insurance agent or insurance company if your community participates in the NFIP. Your insurance agent or insurance company can confirm whether flood insurance is available to you and what it would cost. You can buy flood insurance for your home or business regardless of whether the property is in or out of a floodplain, as long as the property is located in a participating community. 

   It is very important to plan ahead; a flood insurance policy will not go into effect until 30 days after you buy the policy. You can obtain more information about flood insurance at http:// www.floodsmart.gov .