When the Water Rises Recent disasters have proven that flood
insurance is more important now than ever before. Disasters
usually have a way of reminding us of important lessons. In
late-summer 2005, that disaster was Hurricane Katrina, and the
lesson was to always be prepared. Out of the rubble of the Gulf
Coast region emerged a lack of preparedness on a variety of
levels. On a basic level, most citizens lacked flood insurance,
even though New Orleans is a city surrounded by water. In fact,
it was estimated that between only 30-40% of residents hit by
Katrina had any form of flood insurance. In some places, this
number was even lower. Many policyholders do not realize that
basic homeowners insurance does not include protection from
flood damage. Instead, the Federal Emergency Management Agency
(FEMA) administers flood insurance through a federal program. In
many cases, if your home is in a high-risk area for flooding,
you must get flood insurance in order to get a mortgage. In the
wake of Katrina and later, H