Skip First Level Navigation | Skip All Navigation

Site Map   Search INS

Augusta, Maine -

and Washington, D.C. – Today marks the official countdown to the 2007 hurricane season which begins June 1. The Maine Bureau of Insurance and FEMA’s National Flood Insurance Program (NFIP) remind consumers that there is typically a 30-day waiting period before a new flood insurance policy takes effect. With experts predicting another above-average hurricane season just around the corner, now is the time for people to protect their home and property against the most frequent natural disaster in America – floods.

“As shown by the devastating Patriot’s Day storm in April, flooding can be one of the most costly natural disasters affecting Maine,” said Acting Superintendent Eric A. Cioppa. “Since many in the State are still struggling to recover from this recent storm, residents should take time to learn their flood risk and take steps to protect their home or business from potential flood damage before the next storm hits. Remember, homeowners insurance does not typically cover flood damage,” he added.

Flood insurance backed by FEMA’s National Flood Insurance Program provides homeowners, business owners, and renters with the best protection available against flooding. The National Flood Insurance Program estimates that 7,900 policies issued in Maine have flood insurance coverage for losses that property owners would otherwise have to pay themselves.

“Nationwide, claims paid during the 2004 and 2005 hurricane seasons totaled nearly $18 billion – approximately $3 billion more than the NFIP had paid out since the program began in 1978. Yet many properties located in high-risk flood areas remain uninsured or underinsured against floods. We urge all Americans to learn their flood risk and take steps to protect themselves,” said David Maurstad, Director of Mitigation and Federal Insurance Administrator for FEMA’s National Flood Insurance Program.

Hurricanes and related flooding impact the entire Eastern seaboard. Many scientists predict warmer waters in the Atlantic will be fuel for stronger hurricanes over the next 15 to 20 years – and storm surge can be a major factor for coastal areas. Flood insurance covers flooding from tidal and storm surge where other policies may not. Although storm surge caused by hurricanes and tropical storms can wreak havoc on coastal areas, some of the most damaging floods occur hundreds of miles from the shoreline, days after the storm’s initial landfall. As hurricanes and tropical storms move inland, torrential rains and high winds intensify the risks of flooding.

Flood insurance is affordable and available through about 25 insurance companies in more than 964 NFIP participating communities in Maine. The average flood insurance policy premium is approximately $688 a year. In low-to moderate-risk areas, homeowners can protect their properties with lower-cost Preferred Risk Policies (PRPs) that start at $112 a year. For more information, visit www.FloodSmart.gov or call 1-800-427-2419.

The Bureau of Insurance is part of the Department of Professional and Financial Regulation which encourages sound ethical business practices through high quality, impartial and efficient regulation of insurers, financial institutions, creditors, investment providers, and numerous professions and occupations for the purpose of protecting the citizens of Maine. Consumers can reach the Bureau through its web site at www.maine.gov/insurance; by calling 800-300-5000 in state; or by writing to Bureau of Insurance, 34 State House Station, Augusta ME 04333.

###

Last Updated: April 7, 2009 2:37 PM