Ive seen TV coverage of storms where the folks receive disaster relief to rebuild their homes. Why should I pay for flood insurance when I can get disaster relief if and when I need it?
Disaster relief is only available if a flood is a federally declared disaster. Most floods do not fall under this category. If your home is damaged by a storm or occurrance that is not a federally declared disaster, you will be responsible for all repairs without financial assistance. Even if the flood that damages your home is declared a federal disaster, disaster assistance is usually provided in the form of a loan that must be repaid with interest in addition to the mortgage payment that you are making on the damaged property. Flood insurance policy claims are paid regardless of whether or not the flood was declared a federal disaster. Policy holders will be reimbursed for their expenses associated with the flood, and do not have to repay the funds as they would on a disaster assistance loan.
Related Questions
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