Article by Robert Freedman, Director of Multimedia Communications at NAR/ rfreedman@realtors.org.
Too many property owners are caught unprepared when a natural
disaster strikes, said FEMA Administrator Brock Long. They assume the
federal government will step in and make them whole after a disaster, or
they feel they don’t need protection because they’re not at risk. Both
those thoughts are misguided, Long said.First, the financial assistance the federal government provides after a disaster is far less than what property owners would get if they are properly insured—whether it’s for fire hazards, earthquakes, flooding, or another type of disaster. The typical federal assistance is about $2,500 compared to more than $100,000 from insurance companies.
Second, many properties located outside federally designated flood zones or in areas that haven’t been affected by a disaster in years are at risk. Fault lines, for example, may remain inactive for decades, but that doesn’t mean the risk of an earthquake has disappeared.
Long said proper disaster insurance is cheap compared to the cost of rebuilding and should be part of any prudent homeowner’s cost calculus, even if the insurance isn’t required to get a mortgage. Natural disasters, after all, are increasing in number and severity.
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For additional information, contact your trusted insurance professional and visit the FEMA website: FloodSmart.gov
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