Flood Insurance VS. Disaster Assistance: Which do you prefer?

With recent weather events in our area, it’s apparent to many people that it may be time to consider purchasing flood insurance for their home or business. When a natural disaster takes hopefully the government will be there to help in the form of disaster assistance.  This happens when a federally-declared disaster strikes. What if your home or business is ruined during what is a devastating storm to you but isn’t considered a disaster by the Federal Government? This is where the difference between flood insurance and disaster assistance comes into play:

• Flood insurance coverage isn’t dependent upon the government to declare the Flood a Federal Disaster Area VS. Most forms of federal assistance do require a governmental declaration of a disaster.
• Receiving proceeds from a Flood insurance policy is not a debt obligation VS. Disaster Assistance almost always comes in the form of a low or moderate interest government loan program.
• Your property doesn’t have to be in a Special Flood Hazard Area to be eligible to purchase Flood Insurance VS. Not all floods are declared federal disasters and therefore federal aid is not always available.
• Flood Insurance does not cover certain kinds of property such as Decks, Walkways, Patios, Fences, Seawalls, Hot Tubs, Swimming pools, Additional Living Expenses, Business Interruption or Loss of Use and most types of property situated below the lowest elevated floor VS. Disaster Assistance which may help finance some of the costs associated with damages not otherwise covered by a Flood Insurance policy.
• A Preferred Risk Flood Insurance Policy can cost as little as $129 per year VS. The monthly payment debt obligation of a Federal Disaster Assistance loan.

Do you think it’s better to play it safe with flood insurance or depend on assistance that isn’t always guaranteed?

At Dickstein Associates we work closely with each of our clients to understand their unique needs.  Whether it’s your car, home, or business, you deserve a personalized insurance plan, reviewed by a professional independent agent and best suited to protecting your lifestyle and future success.  Contact us today for a free, no obligation consultation and quote.