COLUMBUS, OH -- Carrying flood insurance is one of the easiest ways a homeowner, renter, business owner, or community can lessen the financial impact of property damage associated with high water, according to the Ohio Department of Natural Resources (ODNR).
A flood insurance policy can be written to cover structures, contents of structures, or structures and contents combined. Any licensed property or casualty insurance agent can write a flood insurance policy.
“Floodwaters have now receded across most of the area and recovery has begun, but it is not too early to think about the next time a flood will occur,” said Cindy Crecelius, floodplain program manager in the ODNR Division of Water.
Although most flood insurance policies are written by local agents, the policies are underwritten by the federal National Flood Insurance Program (NFIP). Individual communities must participate in the NFIP for flood insurance to be made available. In Ohio, more than 600 municipalities, as well as 86 of the 88 counties participate in the NFIP. Flood insurance is available in a township if the county in which it is located participates in the NFIP.
Unfortunately, many myths surround flood insurance. Some of the more common myths include:
- Myth: Flood insurance cannot be purchased unless you are in a flood zone or cannot be purchased if you are in a flood zone.
- Reality: Actually, flood insurance can be purchased for any structure or contents in a community that participates in the NFIP, regardless of the flood zone. Flood zones are important to determine the rating and cost of a flood insurance policy.
- Myth: Homeowner insurance policies cover floods.
- Reality: In fact, most homeowner policies specify that claims made due to flood damage are not covered.
- Myth: Flood insurance is expensive.
- Reality: In Ohio, the average annual cost for a flood insurance policy is $506. Although flood insurance policies can be more expensive, the premiums are much cheaper than the cost of repairing a damaged structure.
- Myth: Flood insurance can only be purchased for homes.
- Reality: Flood insurance can be purchased for any structure (defined as a walled and roofed building). Homes, manufactured homes, businesses, local government buildings, schools and other structures are eligible for coverage in participating communities.
The NFIP uses flood insurance policy premiums to pay claims and administrative costs. With average annual flood losses in the United States in the neighborhood of $6 billion, flood insurance is an effective tool to reduce the cost of flood damage to property owners and taxpayers.