The Federal Emergency Management Agency (FEMA) issued a statement Monday, warning homeowners that it could be a dangerous move to decide against purchasing flood insurance if they live in an area that could be affected by such an event. Most homeowners insurance policies do not cover flood damage.
Federal coordinating officer Brad Harris said “If more people knew the real risks and were aware of the real odds we’d have a lot more people signing up for flood insurance,” adding that roughly a quarter of all flood losses occur outside of even so-called “100-year floodplains.” This means that consumers must work to educate themselves about their real risks of suffering home damage from a flood.
FEMA also asserts that consumers tend to drastically underestimate the costs involved with cleaning up flood damage. In just the past fiscal year, the National Flood Insurance Plan has paid more than $126 million in damage claims to policyholders in Texas, FEMA said.
Nevertheless, the federal agency reports that homeowners are sometimes reluctant to pay regular fees to protect themselves against something that might not ever happen. This attitude is a mistake, FEMA says.
Follow this link to learn more about FEMA’s policy on floods.
