Even Now, Get Flood Insurance

Many Gulf Coast and Eastern seaboard residents have come to expect floods and related damage. That’s why Florida, Louisiana, Texas and New Jersey often lead the nation in the purchase of National Flood Insurance Program policies. California has always been a tougher sell; the state entered 1997 with less than 240,000 flood insurance policyholders.

The good news is that more Californians than ever have learned about the risks and the strict federal limits on flood disaster aid. The rolls of policyholders in the state rose by more than 40% between Nov. 1, 1996, and Nov. 30 of last year, to nearly 334,000. That was by far the most significant increase in the nation and due mostly to almost numbingly repetitive El Nino warnings and a public information campaign by the Federal Emergency Management Agency. The bad news is that a few million more sign-ups are needed.

Since 1994, the federal government has allowed uninsured flood victims just one shot of full-fledged federal disaster aid. If you’re still uninsured when the next flood hits, you’ll receive only the most limited federal assistance.

The National Flood Insurance Program is federally operated, but sold through local insurance agents and companies. The program does have some problems; subpoenas were issued in Florida last week, for example, for a federal grand jury investigation into possible abuse of the program. But until the nation has a federal national disaster insurance program, flood insurance is the next best thing.

It covers you whether or not your region has been declared a federal disaster area. It’s less expensive than a federal disaster loan, and even renters can obtain coverage for their belongings. Moreover, damage from certain types of mudslides is also covered, according to Ed Pasterick, chief of the financial division of FEMA’s federal insurance administration. (Call 1-800-427-4661 for more information or visit the program web site: www.fema.gov. /nfip/).

There is a 30-day hold before the flood policy takes effect, but that’s no reason to decline. The folks who signed on in late December, for example, were protected against the past week’s torrential rains. Tuesday’s gorgeous weather was just a breather. There’s more to come.