For example, the disaster declared by President Clinton on July 21 has been expanded to encompass 27 counties, but the amount of damage did not meet the standards established by the Stafford Act for assistance to individuals and businesses. The majority of disaster assistance has been in the form of low interest loans that must be repaid from the U.S. Small Business Administration. Unfortunately, it is often only after the flood that owners and renters discover that flood damage is not covered by their regular insurance. When homes and businesses are covered by National Flood Insurance, good things happen. They can begin right away to remove debris, repair, rebuild, and replace business inventories and personal belongings.
Policyholders are in control.
They don't have to qualify and wait for federal disaster loans, which must be repaid with interest. Policyholder premiums, not taxpayer dollars, pay for flood losses. In addition, a wealth of information about flood insurance, flood plain management and hazard mitigation is available on FEMA's National Flood Insurance Program web site .