FEMA announced this month that more than 5 million flood insurance policies are now in effect in the U.S. In the last two years, the number of NFIP policies-in-force has increased by more than 11 percent, with the strongest growth in Florida, Texas and Louisiana.

Still, many home and business owners resist purchasing flood insurance on the theory that "it won't happen to me." Unfortunately, the facts don't support that viewpoint.

- Floods and flash floods happen in all 50 states.
Most homeowners insurance doesn't cover flood damage.

- Just an inch of water can cause significant property damage, and flash floods often create walls of water 10-20 feet high.

- Approximately 1/4 of all flood insurance claims come from areas designated as low to moderate risk. Residents of these areas can purchase inexpensive "Preferred Risk" flood insurance policies with annual premiums as low as $112, including coverage for the property's contents.

Many people forego flood insurance in the mistaken belief that federal disaster aid will bail them out. But they often don't understand the nature of that aid. Federal assistance is usually in the form of a loan that must be paid back with interest. For a $50,000 loan at 4% interest, the monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a standard $100,000 flood insurance policy for a home in a Special Flood Hazard Area, which could cost about $50 a month ($600 a year).

It normally takes 30 days for a new flood insurance policy to take effect. With hurricane season well underway, delaying the decision could be very costly for your customers.