Sunday, April 15, 2007

FLOOD INSURANCE: What is a Flood? Flood insurance covers direct physical loss caused by "flood." In simple terms, a flood is an excess of water on land that is normally dry. Here's the official definition used by the National Flood Insurance Program:

A flood is "A general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or two or more properties (at least one of which is your property) from:

** Overflow of inland or tidal waters;

** Unusual and rapid accumulation or runoff of surface waters from any source;** Mudflow*, or

** Collapse or subsidence of land along the shore of a lake or similar body of water as a result of erosion or undermining caused by waves or currents of water exceeding anticipated cyclical levels that result in a flood as defined above."

* * Mudflow is defined as "A river of liquid and flowing mud on the surface of normally dry land areas, as when earth is carried by a current of water...

"Who Must Maintain Flood Insurance? Anyone who purchases a home in a designated 100 year flood plain AND borrows money from a Federally Insured Lender using the property as collateral must furnish evidence of flood insurance to the lender. Also, as many of our friends and neighbors found out after the Missionary Ridge and Valley fires in 2002, flood insurance is vital in offsetting losses incurred as a result of the mud slides experienced thereafter.

We encourage anyone living and a designated flood plain or mud slide prone area to investigate flood insurance. It can be purchased through your local insurance agent and is underwritten by the national Flood Insurance Program, a Division of FEMA.

http://HomesInDurango.com / http://DurangoRealEstate.biz

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