Here are the 10 most frequently asked questions about the National Flood Insurance Program (NFIP). Visit the FEMA web site to learn more about the NFIP program. 10). Can't I just wait until it starts raining to buy Flood Insurance coverage? Not if you want to be covered, unless your community revised its flood map within the last year or this is your first purchase and it is required by a lending institution to close a loan. Otherwise you've got to wait 30 days from the time the premium and application are received to be covered. So you can buy the coverage when it starts raining, but it won't protect you until 30 days later. 9). Aren't the NFIP limits too low to matter? Not anymore. The 1994 improvements to the National Flood Insurance Program bumped up the limit on single family residences to $250,000 for the structure and $100,000 for the structure's contents. Even commercial structures can be insured to a limit of $500,000 for the building and $500,000 for contents. And replacement cost coverage is now available on primary residences. 8). I can't qualify for coverage because I'm not in the floodplain. Right? Wrong. Almost everyone in a participating community qualifies for coverage and almost every community participates in the program. Remember to set the policy limits to the full value of your structure and buy contents coverage too. 7). Isn't it too tough to sign up and not worth my time since I'm in a low to moderate risk area? Nope, it is even easier for a person in zones coded B, C, and X to secure coverage. And more than 30% of all NFIP flood claims come from these low to moderate risk areas. 6). Can I finance my purchase? Check with your insurance agent on different payment options available. 5). Do I have to wait until a completed elevation certificate is issued to me? With provisional rating, most companies can make coverage available even before an elevation certificate is complete, which is required on homes built after December 21, 1974 in map zones coded A or V. So you won't need to delay closing on a loan or settlement of a property. 4). Is my basement covered? NFIP policies have some coverage for basement elements: cleanup expense and items such as furnaces, water heaters, washers and dryers, air conditioners, freezers, utility connections, and pumps are included. Contents in a finished basement are excluded, as are a basement's finished walls, floors, and ceilings. 3). Can't I just hold out for federal disaster assistance? Hardly. Federal disaster assistance is declared in less than half of all flooding incidents. Besides, the annual premium for a NFIP policy is less expensive than the interest on most federal disaster loans. The only real option is to get insured before the loss. Even if a federal grant or loan is awarded to you after a major flood, you'll likely be required as a condition of receipt to use part of the proceeds to purchase a NFIP policy anyhow. 2). Can I buy NFIP coverage through all companies? Most companies work with the Federal Emergency Management Agency (FEMA), the administrator of the NFIP so that they can make flood coverage's available to most of their customers. 1). Doesn't my homeowners policy cover floods? NO. No major carrier covers the hazard of flood on its book of homeowners' policies. Catastrophic risks are just too costly and would raise policyholder premiums too much to offer flood protection to policyholders. The NFIP is the only way for homeowners to address the risk of flood. For more information from FEMA and the National Flood Insurance Link, click here National Flood Insurance Link Copyright 2003 © AAA East Tennessee Send questions or comments about this site to webmaster Website design by AAA East Tennessee