Why should I buy flood insurance? Why not just wait for the fed’s to show up and hand out disaster relief?

Here’s the difference you need to know about:

FLOOD INSURANCE	DISASTER ASSISTANCE
The insured is in control. Flood insurance claims are paid even if a disaster is not declared by the President.	Most forms of federal disaster assistance require a Presidential declaration.
Between 20 and 25 percent of all claims paid by the NFIP are outside of Special Flood Hazard Areas.	Federal disaster assistance declarations are not awarded in all flood incidents.
There is no payback requirement.	The most typical form of disaster assistance is a loan that must be repaid with interest.
Flood insurance policies are continuous, and are not non-renewed or cancelled for repeat losses.	The duration of a Small Business Administration (SBA) disaster home loan could extend to 30 years.
Flood insurance reimburses you for all covered building losses up to $250,000 and $500,000 for businesses. Contents coverage is also available up to $100,000 for homeowners and $500,000 for businesses.	The average Individuals and Households Program awarded for Presidential disaster declarations related to flooding in 2008 was less than $4,000.
The average cost of a flood insurance policy is a little more than $500 annually. The cost of a preferred risk policy is less than $300 annually, depending on where you live.	Repayment on a $50,000 SBA disaster home loan is $340 a month or $3,880 annually at 4% interest.

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