What to Do If You Don't Have Flood Insurance After a Flood
Homeowners insurance policies typically exclude damage caused by flooding. Residents of flood-prone areas should obtain a separate flood insurance policy, otherwise they will have to pay for damage restoration out of pocket or obtain relief through a federal program. Here are four types of assistance that may be available through the Federal Emergency Management Agency.
1. Transitional Sheltering and Temporary Housing
After the president declares a federal disaster area, Transitional Sheltering Assistance can lower the cost of staying in a hotel during the days or weeks immediately following a disaster. Homeowners can also seek Temporary Housing Assistance for a period of one month up to 18 months.
2. Grants for Cleanup and Restoration
A homeowner may want to apply for a grant to fund the restoration of a residence located on a flood plane. Grants can be used for repairing structural damage or replacing other losses.
3. Repair and Replacement Assistance
If the location of your home is declared a federal disaster area, you may be eligible for a one-time payment for Repair and Replacement Assistance. This option will not cover the costs of flood damage, and is intended to supplement a flood insurance policy.
4. Low-Interest Loans
It may be possible to obtain loans that have low interest rates to finance residential flood damage repairs. These loans are usually capped at $200,000 for a primary residence and $40,000 for property including renters' losses. Annual interest rates may be as low as 1.75 percent for a 30-year period.
After a federal declaration of emergency, homeowners may benefit from these and other services administered by FEMA. If you obtain flood insurance, you should seek an estimate from storm and water damage restoration experts and make a claim. Professional cleanup and rebuilding services can reduce the likelihood that secondary damage will result from primary flood damage at a residence.