Friday, July 25, 2008
FLOOD INSURANCE:
- You are in control. Flood insurance claims are paid even if a disaster is not declared by the President.
- Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas
- There is no payback requirement
- Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses.
- Flood insurance reimburses you for all covered losses up to $250,000 for homeowners and $500,000 for businesses.
- The average cost of a $100,000 flood policy is a little more than $400 annually, or just over one dollar per day. The cost of a $50,000 flood policy may be as low as $180 annually, depending on where you live, or less than 50 cents per day.
DISASTER ASSISTANCE:
- Most forms of federal disaster assistance require a Presidential declaration
- Federal disaster assistance declarations are awarded in less than 50% of flooding incidents
- The most typical form of a disaster assistance is a loan that must be repaid with interest.
- The duration of a Small Business Administration (SBA) disaster home loan is approximately 30 years.
- The average Individuals and Households Program award is about $4,000.
- Repayment on a $50,000 SBA disaster home loan is $240 a month or $2,880 annually at 4% interest.