MYTH: Only residents of high-flood-risk zones need to insure their property.
FACT: Even if you live in an area that is not flood-prone, it's advisable to have flood insurance. Between 20 percent and 25 percent of the National Flood Insurance Program's (NFIP) claims come from outside high-flood-risk areas. The NFIP's Preferred Risk Policy, available for just over $100 per year, is designed for residential properties located in low- to moderate-flood-risk zones.

MYTH: National Flood Insurance can only be purchased through the NFIP directly.
FACT: NFIP flood insurance is sold through private insurance companies and agents, and is backed by the Federal government.

National Flood Insurance Program

The National Flood Insurance Program (NFIP) is the primary source for flood insurance in the United States. You can purchase flood insurance from a licensed private insurance company or an independent property and casualty insurance agent. Talk to your insurance agent if you have questions, would like additional information, and/or are ready to purchase a flood insurance policy. In most cases, your policy will take effect 30 days after your purchase.

To estimate your flood risk and flood insurance premium, visit www.floodsmart.gov. If your insurance agent is unfamiliar with the NFIP or is not licensed to sell National Flood Insurance, call NFIP at (888) 379-9531. Even if you live in a low-moderate risk area, the City recommends residents consider purchasing flood insurance, especially because water main breaks can also be covered.

Because one in four flood claims is filed by someone residing in a moderate- or low-risk area, flood insurance is a good investment for property owners and renters.

• Flood insurance policies cover almost all flooding conditions.* 
• People cannot be denied because of a structure’s location in a floodplain or its flood history.
• A policy will provide up to $500 to cover the cost of moving your possessions to higher ground - including moving a mobile home.
• A plan will cover replacement costs for primary single-family residences with full coverage.
• Policies will cover both structures and contents, if both are insured.
• Insurance companies can pay a claim or partial claim within days of the disaster even without a presidential disaster declaration.
• A premium can be reduced if a renter or owner takes appropriate mitigation measures.  
• A flood policy has a deductible, much like other insurance policies.
• On policies effective June 1, 1997 and later, and under specific conditions, insurance will pay for additional costs for retrofitting to meet local codes.
• If you rent your home, some insurance companies will add flood coverage to your renters' insurance policy for a small supplement.
• Keep your insurance policies and a list of personal property in a safe place, such as a safe deposit box.

The National Flood Insurance Program (NFIP) is available to everyone everywhere in the U.S.  It is just cheaper if you are not in one of the high-risk zones.

Even water main breaks are covered by NFIP insurance (the rule is if at least two or more properties are affected by an event).

If we ask FEMA to map the high-risk zones more extensively than they currently do, more new property owners would be forced to get it, usually mandated by banks for any mortgage, but at a significantly higher rate, thus discouraging the other pre-existing property owners (those not getting a new mortgage) from getting it voluntarily.

If you experience flood damage and are covered by flood insurance, these important steps will help you when filing your flood insurance claim:

• Save as many damaged articles as possible. If you must throw items out, take pictures to document your losses.
• Contact your insurance agent right away. Once your insurance agent has your claim:
  • The agent will file a Notice of Loss.
  • An adjuster will be assigned to your case.
  • Once the loss has been adjusted, a Proof of Loss will be submitted, and payment can be made. Partial payment can be made to claimants upon submission of a partial Proof of Loss.

• National Flood Insurance Program: http://www.fema.gov/business/nfip, (800) 427-4661
• www.Floodsmart.gov 
• New York State Insurance Department, New York City office: www.ins.state.ny.us, (212) 480-6400
  • Consumer hotline (800) 342-3736.