| Why
You Should Have a Preferred Risk Policy
- The Preferred Risk Policy can
save you money!
- The Preferred Risk Policy ensures
you financial protection against flood damage at a special low price
for owners of homes not in high-risk flood areas.
- Flood damage is not covered under
most homeowner's policies. To get coverage, you have to buy a separate
policy.
- In the past 25 years, the NFIP
has paid one-quarter of its claims to cover flood losses to those
homes in moderate to minimal flood risk zones.
- The Preferred Risk Policy provides several coverage
combinations for both the building and its contents that range from
$20,000 building/$5,000 contents to $250,000 building/$60,000 contents.
- People should consider this low-cost
protection for their homes and contents because floods occur even
in areas no one considers high-risk.
- When a flood occurs, there is
no guarantee that it will be declared a Federal disaster and that
you will qualify for Federal assistance.
- Disaster relief is often in the
form of a low-interest loan that must be repaid. This adds to your
total debt and may wipe out any equity that you have accumulated.
- As a condition for receiving
disaster assistance, the homeowner must purchase and maintain a flood
insurance policy for future protection.
- To be eligible for a Preferred
Risk Policy, the building must be in a low-risk (B, C, or X) zone
on the effective date of the current term.
- You can save about 30% of the
standard application premium costs if you purchase a Preferred Risk
Policy. Most people invest a major part of their income in a home.
Protecting these assets from loss must be a concern.
"Life is not waterproof - Be flood alert."
For more information, call 1-888-FLOOD29,
TDD# 1-800-427-5593.
F-437 (12/99) |
