#1 MYTH: My standard homeowner's insurance policy will cover my losses if my house is damaged or destroyed in a flood.

FACT: Homeowner's insurance does not cover flood damage. Federal flood insurance can only be purchased through an insurance agent, insurance company or the NFIP.

#2 MYTH: Federal disaster aid, available during and after a flood, will reimburse me for my losses. Therefore, I don't need to buy flood insurance for my home and belongings.

FACT: FEMA disaster aid is only available if a Presidential Disaster is declared, which often does not happen after localized flooding. Even still, federal aid is not free. It's usually in the form of a loan from the Small Business Administration that must be paid back with interest. The best protection is a flood insurance policy, which pays claims regardless of a Presidential Disaster declaration.

#3 MYTH: I live outside the floodplain, so I don't need to buy flood insurance.

FACT: Floods can occur anywhere. More than 25% of the flood insurance claims paid by the NFIP are for structures located outside of the identified floodplains (Special Flood Hazard Area). For properties located outside of the Special Flood Hazard Area (SFHA), flood insurance can be obtained at a substantially reduced rate. Also, if you obtain flood insurance while the property is shown outside of the SFHA, and subsequently, the flood map changes and places the property inside of the SFHA, your policy can be "grandfathered", and you will continue to pay the lower rate.

#4 MYTH: I can't buy flood insurance because my home has been flooded previously.

FACT: If a property owner's community is participating in the NFIP, then flood insurance may still be purchased. Only in extreme cases, in which the community, the property owner and FEMA are involved, would flood insurance coverage not be available for a property in a participating community.

#5 MYTH: If people don't want to purchase flood insurance, it's their own business. It doesn't really affect me.

FACT: When people do not buy flood insurance and a flood disaster strikes, the federal and state disaster relief comes from our tax dollars. Flood insurance is one of the best ways to keep disaster relief costs down for all taxpayers.

#6 MYTH: Flood insurance is available only for homeowners.

FACT: Flood insurance is available in participating communities to protect homes, condominiums and nonresidential buildings-including farm and commercial structures-regardless of whether they are in or out of the floodplain. In addition, contents coverage is available, which means renters can protect their possessions as well through a contents only policy.

#7 MYTH: If a flood is forecast in the near future, it's too late for me to purchase insurance.

FACT: As long as the property is in a participating community, federal flood insurance can be purchased at anytime. However, unless the lender requires the flood insurance, there is a 30-day waiting period after an application is submitted and the premium must be paid before the policy is in effect. The policy will not, however, cover a loss in progress.

#8 MYTH: I can only buy federal flood insurance through the federal government.

FACT: Federal flood insurance can be bought through most major private insurance companies and property insurance agents.

#9 MYTH: The NFIP does not offer any type of coverage for basements.

FACT: The NFIP does offer coverage for basements, which it defines as any area of a building with a floor that is sub-grade or below ground level on all sides.

Basement coverage under an NFIP policy includes clean-up expenses and repair or replacement of items used to service homes and buildings. This can include elevators, furnaces, water heaters, air conditioners, utility connections, circuit breaker boxes, pumps and tanks used in solar energy systems.

Flood insurance will not cover the contents of a finished basement and basement improvements such as finished walls, floors and ceilings.

#10 MYTH: Flood insurance is too expensive.

FACT: Flood insurance through the NFIP is reasonably priced with premiums for properties in the SFHA between $500 and $800 per year in many cases. For properties located in low risk areas (Zone B, C, or X), the premium is likely to be between $200 and $400 per year. Compare this to the cost of a low-interest disaster assistance loan, which must be repaid at about $300 to $400 per month!


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