Here are some common myths and misconceptions about flood insurance...

Myth: Only homeowners can purchase flood insurance.

FACT: Most homeowners, condominium unit owners, renters, and businesses in NFIP participating communities can purchase flood insurance. To find out if your community participates, go towww.floodsmart.gov. The maximum coverage amounts are:

• Homeowners and condominium unit owners: up to $250,000 in structural coverage and up to $100,000 in contents coverage
• Renters: up to $100,000 in contents coverage
• Businesses: up to $500,000 in commercial structural coverage and up to $500,000 in contents coverage

Myth: You can't buy flood insurance if you are located in a high-flood-risk area.

FACT: You can buy National Flood Insurance no matter where you live, as long as your community participates in the NFIP. The NFIP was created in 1968 to make federally backed flood insurance available to property owners, renters, and businesses in eligible communities.

Myth: If you live in a low-flood-risk area, you don't need flood insurance.

FACT: All areas are susceptible to flooding, although to varying degrees. If you live in a low-to-moderate flood risk area, it is advisable to have flood insurance. Between 20 and 25 percent of the NFIP's claims come from outside high-flood-risk areas. Residential and commercial property owners located in low-to-moderate risk areas should ask their agents if they are eligible for the Preferred Risk Policy, which provides very inexpensive flood insurance protection.

Myth: Homeowners insurance policies cover flooding.

FACT: Unfortunately, many home and business owners do not find out until it is too late that their homeowners and business insurance policies do not cover flooding. The NFIP offers a separate policy that protects the single most important financial asset, which for most people is their home or business. Homeowners can include contents coverage in their existing NFIP policy. Residential and commercial renters can purchase flood insurance coverage for their buildings and contents/inventory and, by doing so, protect their treasured possessions or their livelihood.

Myth: Federal disaster assistance will pay for flood damage.

FACT: Before a community is eligible for disaster assistance, it must be declared a federal disaster area. Federal disaster assistance declarations are issued in less than 50 percent of flooding events. Furthermore, if you are uninsured and receive federal disaster assistance after a flood, you must purchase flood insurance to remain eligible for future disaster relief.

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Myth: You can't buy flood insurance immediately before or during a flood.

FACT: You can purchase National Flood Insurance at any time. There is usually a 30-day waiting period after you buy flood insurance before the policy is effective. In most cases, the policy does not cover a "loss in progress", which is defined as a loss occurring as of midnight on the first day your policy goes into effect. Basically, if you buy flood insurance after a flood, it will not cover your past losses, only losses after the policy goes into effect.

Myth: The NFIP does not offer basement coverage.

FACT: While basement improvements such as finished walls and floors, and personal belongings in a basement are not covered by flood insurance, structural elements and essential equipment within a basement are. The following items are covered under building coverage, as long as they are connected to a power source, if required, and installed in their functioning location:

• Sump pumps
• Well water tanks and pumps, cisterns, and the water in them
• Oil tanks and the oil in them, natural gas tanks and the gas in them
• Pumps and/or tanks used in conjunction with solar energy
• Furnaces, water heaters, air conditioners, and heat pumps
• Electrical junction and circuit breaker boxes and required utility
• connections
• Foundation elements
• Stairways, staircases, elevators, and dumbwaiters
• Unpainted drywalls and ceilings, including fiberglass insulation
• Cleanup

DID YOU KNOW?

• 90% of all Presidentially-declared disasters included flooding.
• 90% of all disasters are not Presidentially-declared.
• Floods are the most common natural disaster.
• Just in the last two years, floods have hit homes and businesses in all 50 states.
• Floods and flash floods kill more people in the United States than any other natural disaster.
• Floods do not only occur near bodies of water. Heavy rainfall can flood entire cities.
• Unanticipated flooding can happen in areas previously considered out of flood reach.
• Construction and erosion can change water's natural running patterns.
• About one in four flood disasters occur in areas with a low to moderate risk of flooding.
• Property damage from flooding now totals more than $1 billion in the United States.
• Flood insurance policies normally take 30 days from the date of purchase to go into effect. Do not wait until a flood hits to get covered.
• The most dangerous type of flooding is a flash flood, which usually occurs within minutes or hours of a heavy rainfall, a dam or dike failure or a large break in an ice jam.

Disaster assistance is provided in Presidentially-declared disaster areas. However, if you receive disaster assistance, you are not eligible for it again for the next 3 years. You need flood insurance to cover damage should your home flood again in the 3 years following a Presidentially-declared disaster.