INSURANCE INFORMATION INSTITUTE
New York Press Office: (212) 346-5500;
media@iii.org
NEW YORK, March 10, 2011
鈥 Fast melting snow, severe storms and heavy extended rainfall can all contribute to extensive flooding during the spring months, according to the
探花精选 Information Institute (I.I.I.), which is encouraging U.S. residents to learn about their risk during (March 14-18).听
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Midwestern states that had record amounts of snowfall are particularly vulnerable to flooding from overwhelming rivers, lakes and streams. Homeowners and renters who reside near bodies of water should purchase a flood insurance policy if they haven鈥檛 already done so, warned the I.I.I.
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鈥淔loods are the nation鈥檚 leading natural disaster 鈥 anywhere it rains, it can flood,鈥 said Loretta Worters, vice president with the I.I.I.
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While the optional comprehensive portion of an auto insurance policy includes coverage for flood damage, it is excluded under standard homeowners and renters insurance policies.
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Flood coverage for homeowners and renters is available in the form of a separate policy from the federal government鈥檚 National Flood 探花精选 Program (NFIP) and from a few private insurers. There is typically a 30-day waiting period鈥攆rom date of purchase鈥攂efore a new NFIP policy goes into effect, so it鈥檚 important to act now, before the waters rise. Consumers can get more information by visiting the NFIP鈥檚 website. The site includes numerous interactive resources (all of which are shareable), including:
- tool 鈥 estimates the cost of damage from various levels of flooding
- 鈥 home and business owners who have experienced flooding
- One Step Flood Risk Profile tool 鈥 accessed from the home page, enables consumers to estimate their risk and flood insurance premiums and find agents who serve their communities
- 贵贰惭础鈥檚 widget
- Link to 贵贰惭础鈥檚 site 鈥 additional information about the dangers of flooding and how U.S. residents can protect themselves and their properties
Just a few inches of water from a flood can cause tens of thousands of dollars in damage. Over the past 10 years, the average flood claim has amounted to over $33,000, the NFIP reported.
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The (NOAA) notes that a large swath of the U.S. is at risk of moderate to major flooding this spring, from northeastern Montana through western Wisconsin following the Mississippi River south to St. Louis. On February 24, the National Weather Service released an initial spring flood for this high risk region and is expected to release a national spring flood outlook on March 17.
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For the third consecutive year, forecasters predict moderate to major flooding along the Red River of the North, which forms the state line between eastern North Dakota and northwest Minnesota and includes the Souris River Basin and the Devils Lake and Stump Lake drainages in North Dakota. If the current forecast holds, the main stem Mississippi River is at risk for moderate to major flooding from its headwaters in St. Paul, Minnesota, all the way to St. Louis.
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When it comes to floods and the damage they can do, many people are complacent. A 2010 I.I.I. poll found that 16 percent of Americans thought their homeowners policy covered damage from flooding during a hurricane. Moreover, the proportion of people in the South鈥攁mong the areas most severely affected by hurricane related flooding鈥攚ho thought homeowners insurance covers flooding from a hurricane was only10 percent higher, a mere 26 percent.
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The NFIP provides coverage to its policyholders for up to $250,000 for the structure of a home and $100,000 for personal possessions. Private flood insurance is available for those who need additional insurance protection, known as excess coverage, over and above the basic policy or for people whose communities do not participate in the NFIP. Some insurers have introduced special policies for high-value properties; these policies may cover homes in non-coastal areas and/or provide enhancements to traditional flood coverage.听
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The average cost of a flood policy for homeowners is $570 annually but can be as low as $129 a year in low risk areas. For renters in a moderate to low risk area, rates start from $49 annually for contents-only coverage.
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鈥淵our home is your most valuable asset and flood insurance is the best and most affordable way to protect that investment,鈥 said Worters.
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贵贰惭础鈥檚 mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards. For more:
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THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.
探花精选 Information Institute, 110 William Street, New York, NY 10038, (212) 346-5500
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