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Flood insurance facts and statistics
The National Flood Insurance Program (NFIP) provides federally-backed flood insurance protection to home owners, renters and business owners. Flood insurance is available in communities that take steps to reduce the risk of rising waters and property damage through sound floodplain management policies. In exchange for these safeguards, people in flood-prone regions are eligible to purchase flood insurance. An estimated 5.5 million households participate in NFIP, according to the Federal Emergency Management Agency (FEMA).
The NFIP provides up to $250,000 of insurance coverage for the structure of a home and $100,000 of personal property coverage. With damage costs on the rise and home construction expenses increasing, a basic flood insurance policy may fall short of the needs of some home owners. As a result, insurance companies have introduced "excess coverage" policies, which offer more extensive coverage than basic flood insurance. These policies are also available to those who do not live in an NFIP-participating community. In addition to "excess coverage," some insurers offer specialized insurance for high-value homes that may be used to augment existing coverage on a basic flood insurance policy, or to cover property in a non-coastal area.
Although flood insurance policies are provided by the federal government, policies can purchased through private insurance agents or insurance companies. As of July 2010, 87 insurance companies were participating in the federal 'Write-Your-Own' Program, in which private insurers manage policies and claims on behalf of the federal government.
In 2011 FEMA reported an average flood insurance premium of $570 per year. Residents of low-to-moderate risk areas could be eligible for Preferred Risk Policies starting as low as $129 per year. The average flood claim in 2009 was $25,317, down from $46,130 in 2008, according to the Insurance Information Institute.
National Flood Insurance Program, 1995-2010
|
Losses Paid |
|||
|
Calendar Year |
Policies in force at end of year |
Number Paid |
Amount |
|
1995 |
3,476,829 |
62,441 |
$1,295,578 |
|
1996 |
3,693,076 |
52,677 |
$828,037 |
|
1997 |
4,102,416 |
30,338 |
$519,537 |
|
1998 |
4,235,138 |
57,349 |
$886,347 |
|
1999 |
4,329,985 |
47,247 |
$754,971 |
|
2000 |
4,369,087 |
16,362 |
$251,721 |
|
2001 |
4,458,470 |
43,589 |
$1,277,002 |
|
2002 |
4,519,799 |
25,312 |
$433,644 |
|
2003 |
4,565,491 |
36,838 |
$780,507 |
|
2004 |
4,667,446 |
55,826 |
$2,232,051 |
|
2005 |
4,962,011 |
212,897 |
$17,714,793 |
|
2006 |
5,514,895 |
24,595 |
$640,671 |
|
2007 |
5,655,919 |
23,132 |
$612,395 |
|
2008 |
5,684,275 |
74,300 |
$3,452,271 |
|
2009 |
5,700,235 |
30,839 |
$773,065 |
|
2010 |
5,646,735 |
27,923 |
$727,877 |
|
Source: U.S. Department of Homeland Security, Federal Emergency Management Agency. |
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Flood Insurance in the United States, 2009
|
Total NFIP & Write-Your-Own Policies In-force |
||
|
State |
Number of policies |
Insurance in force |
|
Alabama |
56,321 |
$11,177.90 |
|
Alaska |
2,856 |
$628.60 |
|
Arizona |
35,265 |
$7,607.30 |
|
Arkansas |
18,720 |
$2,384.20 |
|
California |
276,222 |
$67,864.50 |
|
Colorado |
19,324 |
$4,189.80 |
|
Connecticut |
37,304 |
$8,278.30 |
|
Delaware |
24,679 |
$5,768.20 |
|
D.C. |
1,490 |
$252.40 |
|
Florida |
2,145,713 |
$473,690.70 |
|
Georgia |
96,017 |
$22,224.10 |
|
Hawaii |
58,689 |
$11,376.40 |
|
Idaho |
7,020 |
$1,536.80 |
|
Illinois |
47,800 |
$7,724.10 |
|
Indiana |
32,344 |
$4,837.20 |
|
Iowa |
15,436 |
$2,287.70 |
|
Kansas |
12,667 |
$1,875.80 |
|
Kentucky |
23,176 |
$3,041.90 |
|
Louisiana |
483,966 |
$104,151.50 |
|
Maine |
8,883 |
$1,806.10 |
|
Maryland |
68,233 |
$14,027.10 |
|
Massachusetts |
51,349 |
$11,270.70 |
|
Michigan |
25,665 |
$4,025.10 |
|
Minnesota |
10,852 |
$2,169.90 |
|
Mississippi |
76,494 |
$15,644.00 |
|
Missouri |
25,066 |
$3,815.90 |
|
Montana |
4,175 |
$711.60 |
|
Nebraska |
11,934 |
$1,739.00 |
|
Nevada |
15,754 |
$3,705.60 |
|
New Hampshire |
9,010 |
$1,682.90 |
|
New Jersey |
228,757 |
$49,903.60 |
|
New Mexico |
16,484 |
$2,739.90 |
|
New York |
162,058 |
$37,701.60 |
|
North Carolina |
136,023 |
$30,709.70 |
|
North Dakota |
13,305 |
$2,779.60 |
|
Ohio |
40,783 |
$6,097.00 |
|
Oklahoma |
16,519 |
$2,493.20 |
|
Oregon |
32,432 |
$6,952.60 |
|
Pennsylvania |
66,898 |
$11,600.50 |
|
Rhode Island |
15,170 |
$3,572.10 |
|
South Carolina |
202,218 |
$46,776.60 |
|
South Dakota |
4,307 |
$765.60 |
|
Tennessee |
25,249 |
$4,933.80 |
|
Texas |
683,456 |
$157,513.60 |
|
Utah |
4,181 |
$944.30 |
|
Vermont |
3,624 |
$ 634.10 |
|
Virginia |
108,572 |
$25,306.90 |
|
Washington |
57,714 |
$12,805.70 |
|
West Virginia |
21,548 |
$2,465.50 |
|
Wisconsin |
16,085 |
$2,573.90 |
|
Wyoming |
2,645 |
$500.80 |
|
American Samoa |
289 |
$8.60 |
|
Guam |
296 |
$54.00 |
|
Puerto Rico |
63,661 |
$5,581.30 |
|
Virgin Islands |
2,457 |
$356.10 |
|
United States |
5,627,158 |
$1,217,266.80 |
|
Source: U.S. Department of Homeland Security, Federal Emergency Management Agency. |
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