Bloomingdale Newsletter March 2013 April Showers Bring May Flowersand, Unfortunately, Sometimes Flooding As a resident of Bloomingdale since

2004, I have seen and experienced the terrible flooding that has affected the neighborhood. While I dont currently have a flood insurance policy, I believe Bloomingdale residents (especially those with finished basements and owners/renters living in basement-level units) might be interested in learning more about this type of insurance. The National Flood Insurance Program (NFIP) is a federal program administered by the Federal Emergency Management Agency (FEMA). The NFIP partners with private insurance companies such as State Farm, Hartford, Progressive, and Chubb to offer flood insurance to property owners and renters. Rates for flood insurance are set and do not differ from company to company or agent to agent. However, rates will vary based on the type of construction and the risk level determined by FEMAs flood zone maps. So what constitutes a flood? For insurance purposes, a flood is defined as water coming up from the ground or moving sideways. This includes mud that inundates a house. Sewage is a different case in that its typically covered by a homeowners policy, but there are some cases when it can be covered by flood insurance. An important feature of flood insurance to take note of is that theres a 30-day waiting period from the date of purchase before your policy goes into effect. Dont buy a policy a week before a major storm and expect to be covered! What does flood insurance cost? I entered my home address into the www.floodsmart.gov policy quote tool and found that my house is rated as moderate-tolow risk for a flood occurrence. I was also given a range of annual premium costs: Contents Only: $55 - $743 Building Only: $381 - $1,095 Building and Contents: $129 - $1,798 Should you buy flood insurance? My answer to that question is the same one I give to nearly everyone that inquires about insurance: It depends on your personal situation. I would certainly recommend looking into it if you live in an area that is prone to flooding (like Bloomingdale!). I would encourage it even more if you happen to live in a basement-level unit. Note: I do not sell insurance of any type, nor do I receive compensation from any insurance companies. Please contact me if you have questions, comments, or suggestions for upcoming articles. Best regards, Chuck Donalies, CFP CERTIFIED FINANCIAL PLANNER Professional Donalies Financial Planning, LLC 240.888.2573 mobile chuck@donaliesfp.com www.donaliesfp.com

Follow me on Twitter @frugalplanner Chuck has lived in Bloomingdale for 9 years. Hes a CERTFIED FINANCIAL PLANNER Professional, father of two, husband, artist, and triathlete