For an annual premium, a flood insurance policy will protect your home and belongings. Your homeowner's insurance probably doesn't include flooding in its coverage and you shouldn't count on the federal government to pay for flood damage. Even if you qualify for assistance, which only three percent of flood victims do, the money comes in the form of grants or loans, repayable by you, with interest. This procedure often requires collateral in the form of a lien on your property. Only federal flood insurance covers flood damage. In addition, uninsured flood victims will most likely have to buy flood insurance as a condition of obtaining a federally backed disaster loan or grant. Be aware that some insurance companies have a waiting period before flood insurance takes effect. If you wait too long before purchasing insurance, a flood could wash away your future. Consult an insurance agent in your area for more information about governmental assistance.
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