How To Obtain Government Flood Assistance
If flooding compromises your home and you are unable to pay for repairs, you may be able to obtain federal assistance in place of private flood insurance. Homeowners who lack conventional coverage can take advantage of two unique government-backed options.
Those harboring doubts concerning the risk floods present should consider the following realities:
- Out of all natural disasters, floods are the most common and costly.
- Approximately only 15% of homeowners own flood policies.
- Nearly half of all homeowners incorrectly believe their homeowner’s insurance covers flooding.
The fact remains that floods present great peril, both to people’s safety and their bank accounts. Before a storm strikes Virginia Gardens, FL, and triggers damage that requires the expertise of a water restoration specialist, become familiar with the following financial flood protection avenues.
Your first flood insurance option is a loan provided by the Small Business Administration. The second is a disaster grant endorsed by FEMA.
SBA disaster loan repayment terms can extend for up to 30 years. Individuals unable to obtain cash elsewhere face a maximum interest rate of 4%. For those who do possess the ability to acquire outside backing, it rises to 8%. Around half of all applicants receive approval, with low credit scores being the explanation for most rejections.
Money from FEMA is only given if you reside within a federally confirmed flood plane. Unlike with the above, these funds do not need to be repaid if you lack coverage. The limit is $33,000, although the average payout amounts to $5,000. Those with insurance can even access this funding to help with expenses excluded by their policy.
Both selections present eligibility requirements. For instance, you may be required to prove that the area in which you reside has been declared a federal disaster zone.
It is highly recommended that you obtain private flood insurance if you live inside a vulnerable territory. However, know that alternatives exist even under circumstances where you lack a traditional monetary safeguard.