Common misconceptions about the National Flood Insurance program (NFIP) corrected. For more information on the NFIP, visit the the Federal Emergency Management Agency web site. MYTH Flood Insurance is not available in high risk areas FACT Almost anyone in NFIP participating communities can purchase flood insurance. In fact the program was created with the specific intent of helping those in Special Flood Hazard Areas (SFHA) obtain coverage. Federally Regulated lenders must require borrowers in SFHAs to buy flood insurance as condition to receive a typical mortgage. One exception: residents of Coastal Barrier Resource System (CBRS) areas are not eligible. These residents make up much less than 1% or the US population. MYTH You can wait until the last minute to buy flood coverage FACT Although you can buy coverage just prior to a flood, there is a 30 day waiting period after you have paid the premium before the policy is effective. Two exceptions to the waiting period are if the flood map for your community was revised in the last year and if your initial flood insurance purchase is required to close a loan. Otherwise you must wait for 30 days before coverage begins. MYTH My homeowners policy covers flood damage to my home and property FACT Homeowners policies rarely if ever cover flooding as a cause of loss. The only method to cover loss of flood damage for the homeowner is federal flood insurance . MYTH Flood insurance is available only to homeowners FACT Coverage is available to protect homes, condominiums, apartments, and commercial nonresidential buildings. MYTH If your property has been flooded even once, you can't get flood insurance. FACT As long as your community participates in the NFIP, you are eligible to buy flood insurance, regardless of how many times your property has been flooded. MYTH I don't need flood insurance, I'm not in a high-risk area. FACT Upwards of 30% of NPIF's claims come from outside high risk flood areas. There are substantial premium discounts for residents who live in low to moderate risk areas. MYTH No basement coverage is available on a flood policy. FACT Flood Insurance provides coverage for basement clean up and items used to service the building such as boilers, furnaces, hot water heaters, air conditioners, etc. Most contents and improvements to basements are not covered. MYTH Federal disaster assistance will pay for flood damage. FACT Less than 50% of flooding incidents are declared federal disaster areas. The $300 average annual flood insurance premium is much less costly than is interest on a federal disaster loan. Furthermore, recipients of federal disaster loans or grants must purchase flood insurance to receive disaster relief in the future. MYTH The NFIP encourages coastal development FACT NFIP's primary objectives include guiding development away from coastal areas. In addition, the Coastal Barrier Resources Act of 1982 relies on the NFIP to discourage building on fragile coastal areas covered by the CBRA. MYTH Federal flood insurance can only be purchased directly through the NFIP FACT Federal flood insurance policies are sold through private insurance agents and companies and is backed by the full faith and credit of the United States of America. MYTH NFIP insurance does not cover flooding from hurricanes or the overflow of rivers or tidal waters. FACT The NFIP definition of coverage would cover floods caused by hurricanes or overflow or rivers or tidal waters. Two or more acres or two or more adjacent properties must be affected. The policy defines flooding as a general and temporary condition during which the surface of normally dry land is partially or completely inundated. The cause of flooding can be overflow of tidal waters or inland waters; runoff, such as from rainfall; mudslides or mudflows caused by flooding; and collapse of land along a body of water from erosion exceeding normal levels. MYTH Wind driven rain is considered flooding. FACT Damage by wind driven rain is not covered under the NFIP policies, but is usually covered under the homeowners policies such as those offered by most major carriers as a windstorm peril. For more information from FEMA and the National Flood Insurance Link, click here National Flood Insurance Link Any questions concerning Facts or Myths should be thoroughly covered with your own insurance agent. Copyright 2003 © AAA East Tennessee Send questions or comments about this site to webmaster Website design by AAA East Tennessee