Common Questions about Flood Insurance
Posted by Jennifer Nausin on Thu, Oct 29, 2009 @ 03:15 PM
Its rainy season here in Seattle and with local concerns related to the Howard Hanson Dam & Green River Valley, we have been talking about flood insurance quite a bit. In speaking with our network of agents we have noticed that there are some common questions we hear nearly every day. Listed below are some of the most commonly heard questions about Flood Insurance, the Howard Hansen Dam and the Green River, and some simple answers to those questions in laymen's terms.
What happens if the Howard Hansen Dam on the Green River releases too much water and causes flooding? Am I covered?
If you have a NFIP Policy - YES!
What happens if the Howard Hansen Dam collapses? Am I covered?
Yes, but we would recommend heading for the hills as the damage would be huge.
What is the difference between the National Flood Insurance Program (NFIP) and Federal Flood Insurance?
Both program names reference the federally backed flood insurance program administered by FEMA - NFIP and Federal Flood Insurance are the same thing.
What is Write Your Own Flood Insurance?
The "Write Your Own" (WYO) Program of the NFIP allows regular insurance companies to issue and service NFIP policies with federal government backing. WYO carriers procure, produce, and handle NFIP claims on behalf of the insurer.
What is the difference between a basement, a crawl space and an enclosure?
A. Basement: below grade on all 4 sides (You could live down there)
B. Crawl Space: below the lowest habitable floor (You can't live down there)
C. Enclosure: Non habitable area attached to the building, i.e. a non-habitable garage (You can't live down there either)
Can a National Flood Insurance Policy be paid monthly?
No, policies are annual. The only exception to this would be if you arranged for your bank to pay for your policy through an escrow account. Another option would be to pay on a credit card and then make the monthly payments to your credit card company.