Understand your Risk for Winter Flooding

The Federal Emergency Management Agency (FEMA) wants to take this time to remind homeowners are still at risk for flooding during the winter months. First, the dangers of severe weather and related flooding do not end when colder weather begins. Floods are a year-round hazard, and they can be especially damaging during the winter due to heavy seasonal rains, melting snows and other factors. Second, most homeowners insurance does not cover flood damage. Without the financial safety net that flood insurance provides, residents may be forced to cover thousands of dollars in damage on their own.

Flood risks are particularly significant in the Western portion of the United States this time of year. The rainy season in these states brings the majority of annual precipitation to the region. Portions of the country may also see an increased risk of flooding because of summer wildfires, which leave the ground charred, barren and unable to absorb water, creating conditions ripe for flooding and mudflow. 

There are simple steps residents can take to prepare for seasonal winter flooding, and one of the most critical ways to protect homes and businesses is by obtaining flood insurance. Because flood policies typically take 30 days to become effective, residents should not wait for the next storm to take action - the time to get protected is now.

Flood insurance is available to renters, homeowners and business owners through approximately 90 insurance companies in more than 21,000 participating communities nationwide. Individuals can learn more about seasonal flood risks and what to do to prepare by visiting FEMA's FloodSmart.gov website, or by calling 1-800-427-2419.

Do You Think You Need Flood Insurance?

With hurricane season coming upon us, it would be a wise choice to review your homeowner insurance. Flood coverage is not provided in your standard home owners insurance policy. Most people think, I don’t live near a body of water I don’t need it. But if water backs up or overflows from a sewer, drain or sump in to your home, guess what, it’s not covered.

“Standard homeowners policies cover structural and water damage when wind or a falling tree knocks a hole in a roof, or breaks a window, allowing rain to fall inside,” the Associated Press reports. “But there's generally no coverage for the home itself, or for personal belongings, when damage results from rising water. That includes water that seeps up from saturated ground through a basement floor, and homes near beaches flooded by storm surges.”

The take away, talk to your insurance company and understand the coverage you are paying for so you’re not left fixing something you thought would be paid for by insurance.

Tax Credit Deadline Extended; Flood Insurance Program Reinstated

Congress has passed a bill extending the Homebuyer Tax Credit closing deadline to September 30, 2010. This is a huge win for REALTORS® and homebuyers, and the National Association of Realtors [NAR] worked closely with members of Congress to make it happen.

The extension applies only to transactions that had ratified contracts in place as of April 30, 2010, and have not yet closed. There will be no gap between June 30 and the date the President signs the bill into law.

Additionally, Congress has extended the National Flood Insurance Program (NFIP) through September 30th. The bill is retroactive and will cover the lapse period from June 1, 2010, to the date the law is enacted. NAR will continue to work with Congress on the NFIP Reform bill, and we will keep you posted on those efforts.

For additional information on both the tax credit deadline and the NFIP, visit Realtor.org/Government_Affairs.