A few days shy of hurricane season, time is
quickly ticking for consumers to take action against financial ruin in
the event of catastrophe. With an increased amount of hurricanes
anticipated this season, the National Oceanic & Atmospheric
Administration urges folks to prepare for the worst. The NOAA reports
that approximately 13-17 storms will be named and seven to 10 will
likely become hurricanes.
So what do you need to do to prepare? Don't
run to the home improvement store just yet. Plywood and duct tape won't
prevent or fix damage from a hurricane. Because hurricanes bring
torrential rains and cause extensive flood damage, you need to be sure
you've purchased flood insurance.
"But doesn't my homeowner's insurance take care of flooding? I thought homeowner's insurance was supposed to cover things like this?"
While it seems logical that homeowner's
insurance would cover flooding, it does not. With FEMA reporting
flooding as America's #1 natural disaster, it makes sense to look into
purchasing flood insurance.
You have several options when it comes to
purchasing flood coverage. The National Flood Insurance Program offers
two federal programs. The main stipulation for these programs is that
your community must enroll and be an NFIP participant. This flood
insurance can be purchased directly from the NFIP or from some insurance
agents.
"But do I have to buy flood insurance when there is a national disaster program that will assist me?"
Because both programs provide coverage for flood damage, you don't HAVE to purchase flood insurance.
Like many government programs, however, national disaster assistance
requires much more paperwork and waiting than flood insurance does.
In addition, flood insurance does not have to
be re-paid. Most disaster assistance comes in the form of a loan, so it
has to be re-paid over a set amount of time. Disaster assistance is
only guaranteed when the president puts it into effect – and even then
you have to wait for reimbursement.
In short, keep in mind that FLOOD INSURANCE
IS NOT INCLUDED in your homeowner's insurance policy. If you need to
apply for flood insurance, start preparing ASAP. Unless you just built
your house, there is a 30-day waiting period between when you apply for
the insurance
and the date it goes into effect. With a little more than a week before
hurricane season and 30 days for your policy to take effect, don't let
time slip away with the lazy days of summer unless you're insured for
flood damage.
