The facts show:

Flood insurance is the 

prudent choice.

Flood insurance from the 

NFIP puts you in control. 

Homeowners, business owners, 

and renters can all buy flood 

insurance, as long as their 

community participates in 

the NFIP.

Flood insurance claims are 

paid even if a disaster is not 

declared by the President. 

Claims are paid promptly, 

so flood victims can recover 

quickly. If you file a flood 

insurance claim, you may 

also request an advance 

partial payment for your 

immediate needs.

Flood insurance reimburses you 

for covered losses. Homeowners 

can buy up to $250,000 of 

coverage; businesses, up to 

$500,000. Separate contents 

coverage is available, so renters 

can also buy protection.

The risk of flooding is real.

Do not gamble any longer.

For more information about the NFIP and 

flood insurance, call 

1-800-427-4661

or contact your insurance company or agent.

For an agent referral, call 

1-888-435-6637

TDD 1-800-427-5593

http://www.fema.gov/business/nfip

http://www.floodsmart.gov

National Flood Insurance Program

What You Need to 

Know about Federal 

Disaster Assistance 

and National Flood 

Insurance

F-001 FEMA B-689 (8/09)
"Who needs flood insurance? 

If my home or business is ever 

flooded, disaster assistance will 

bail me out."

THE FACTS ARE:

• Before most forms of federal disaster assistance 

can be offered, the President must declare a 

major disaster.

• The most common form of federal disaster 

assistance is a loan, which must be paid back 

with interest.

• The average Individuals and Households Program 

award for Presidential disaster declarations 

related to flooding in 2008 was less than $4,000.

• To qualify for federal home repair assistance, 

your home must have relatively minor damage 

that can be repaired quickly.

• You do not qualify for federal rental assistance 

unless your home has been heavily damaged 

or destroyed.

"Flood insurance is 

too expensive."

THE FACTS ARE:

• The duration of a Small Business Administration 

(SBA) disaster home loan can extend to 30 years.

• The monthly payment on a $50,000 disaster 

home loan at 4 percent interest is $303 for 

20 years.

• The average premium for federally backed flood 

insurance through the National Flood Insurance 

Program (NFIP) is $550 a year.

• The cost of a Preferred Risk Policy starts as low 

as $119 a year.

"We are not going to be flooded. 

This area has never been flooded."

THE FACTS ARE:

• Floods are the most common, and most costly, 

natural disaster.

• In the past several years, about 60 percent of all 

declared disasters involved flooding.

• Because more roads, buildings, and parking 

lots are being constructed where forests and 

meadows once stood, floods are becoming more 

severe throughout the U.S.

• In areas with the greatest risk of flooding, 

Special Flood Hazard Areas (SFHAs), a building 

has a 26 percent chance of being flooded during 

a 30-year mortgage.

• On average, 25 to 30 percent of all flood 

insurance claims paid by the NFIP are for 

property outside of SFHAs.

When it comes to 

flood insurance, do 

you have feelings 

like these?

Answers to Common Misconceptions about Flood Insurance

"Who needs flood 

insurance? If my 

home or business is 

ever flooded, disaster 

assistance will bail 

me out."

"Flood insurance is 

too expensive."

"We are not going to be 

flooded. This area has 

never been flooded."