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April 10, 2007
For immediate release
For more information, contact:
Bonnie J. Prigge or Lesley Bennish, (573) 265-2993
Third in a series
MISSOURI FLOODS ARE COSTLY FOR THOSE CAUGHT UNPREPARED
Flood insurance can cushion the blow
PHELPS COUNTY–Major flooding in Missouri can occur at any time of the year and cause millions of dollars of damage over a wide area. “Flood insurance helps businesses and private citizens recover after a flood,” said Phelps County Presiding Commissioner Randy Verkamp.
While severe flooding usually comes in cycles, it is not limited to certain decades or areas, warns the National Weather Service. Since 1993, Missouri received 15 Presidential Declarations for Flooding that exceeded local and state response capabilities. Each year, Missouri communities experience numerous localized flooding events that do not merit a federal disaster declaration.
Residents in the Beaver Creek Subdivision south of Rolla were victims of localized flooding in 2002, and two people in Missouri were killed due to flash flooding in 2006.
If there is not a federal disaster declaration, flood insurance is the only financial protection for personal losses. Flood insurance is not provided in the basic homeowner’s, business or tenant’s policy. Flood insurance must be purchased under a separate policy through your local insurance agent in participating communities.
In Missouri, 577 flood-prone cities and counties participate in the National Floodplain Insurance Program (NFIP). When a community enters the NFIP, it agrees to regulate floodplain development; in return it also makes flood insurance available in that community.
“Phelps County participates in the flood insurance program, and homeowners have the option to buy the insurance,” Verkamp said.
Residents need not live in an actual floodplain to be exposed to the hazard of serious flooding. Many flood insurance claims are paid for damages to property not located in the floodplain.
Here are some other important facts about the National Flood Insurance Program:
- Homeowner’s insurance policies do not offer protection against flood losses.
- Homeowners, business owners and renters can purchase flood insurance as long as their community participates in the NFIP.
- You do not have to live in a high-risk flood area (or floodplain) to buy flood insurance. In fact 35 percent of all flood insurance claims come from medium or low risk flood areas.
- If you live in a high-risk flood area, you are four times more likely to have a flood than a fire during the term of a 30-year mortgage.
- You can buy flood insurance from any licensed insurance agent. You may call 1-800-427-4661 for general information regarding flood insurance.
- Flood insurance coverage is available for residential and business structures and contents. A single-family home can be insured for up to $250,000. An additional $100,000 can be purchased for contents. Commercial buildings can be insured for up to $500,000. Business contents can be covered for up to $500,000.
- If you have a home-based business, you’ll need to purchase separate coverage for the business and/or contents. Coverage is not automatically included under a homeowner’s flood insurance policy, even if the business is located inside your home.
- Renters can purchase contents coverage for up to $100,000 to cover personal belongings.
- There is a 30-day waiting period from the time the initial premium is paid until the time the policy becomes effective. The waiting period is waived at the time of a real estate closing if the policy is purchased prior to the closing.
- A flood insurance policy reimburses you to certain limits for actions taken to prevent flood damages. These actions can include moving the insured contents to a safe place and/or the cost of purchasing sandbags, plastic sheeting, lumber, pumps, etc.
- Flood insurance claims are paid regardless of a federal disaster declaration.
- Flood insurance will reimburse you for your covered losses and never has to be repaid, unlike a disaster assistance loan.
- Flood insurance claims are handled quickly so that flood victims can recover faster.
- Flood insurance claims are paid by policyhholder premiums, not tax dollars.
For more information on floodplain regulations in Phelps County, persons should call Meramec Regional Planning Commission at (573) 265-2993. MRPC serves as Phelps County’s floodplain coordinator.
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