Much of what you know about federal flood insurance may be flood insurance myth.
Palm Coast, FL – May 5, 2011 – Much of what you know about federal flood insurance may be flood insurance myth.
- Rising rivers
- Early snowmelts
- Manmade problems from the construction of roads, shopping malls, homes, and industrial complexes
- You buy a home in a special flood hazard area where there’s a 1% chance of flooding in any year.
- Your community participates in the National Flood Insurance Program.
- You buy your home using a loan from a federally insured financial institution, or a Fannie Mae- or Freddie Mac-guaranteed loan.
About 5.6 million home and small-business owners live in the more than 21,000 communities that participate in the flood insurance program, according to the Government Accountability Office.
- It can cost up to $6,000 a year if you buy the highest possible coverage of $250,000 and live in a high-risk area.
- It could cost $472 for $35,000 in damage coverage in a high-risk area.
- It can cost as little as $129 a year for $20,000 of rebuilding coverage and $8,000 in contents in a low-risk area.
- $6,000 in a high-risk coastal area
- $2,700 in a high-risk inland area
- $400 a year in a low-to-moderate-risk inland area.
- South Dakota
- West Virginia
Dona DeZube, HouseLogic’s News Editor, has been writing about real estate for over two decades. She lives in a suburban Baltimore 1970s rancher that flooded in one corner of the basement when she first bought it. The flooding stopped after she added a drain to the front yard and gutters.