FLOOD INSURANCE AS AN INTEGRAL PART OF DISASTER PREPAREDNESS
Numerous catastrophes bombard various locations and homes. This is due to their positioning in proximity to the source of such disasters, which they have to learn to control for, for a safe stay in such regions. Natural catastrophes range from floods to strong winds to sudden earthquakes. There are, however, some potential dangers that are caused because of the various human activities. Many buildings continue to burn to ashes while lives are lost and costly property demolished.
Floods are definitely among the most dangerous occurrences experienced in the world today. Hurricanes and other disasters leave lasting impressions; people still dreading their effects to the present day. Some of the damages that they cause are definitely difficult and costly for any affected business or individual to recover from. The advent of flood insurance has seen many of the businesses have a hope to revive their operations because of the aid of flood insurance firms.
Effects of Floods
Floods have exposed homes and business premises to devastating consequences and greatly impacts on the economy. During flash floods, the roads and bridges are destroyed and blocked, making it impossible for transit vehicles to use them. Transportation of products and personnel is very cardinal in the success of a business and thus floods become a major barrier to efficiency. When roads are impassable, life generally lags because movement is mandatory in going about daily activities.
Business premises are destroyed in the event of a flood. The products and other property are ruined. In the floods that occurred in the USA in 2011, several stores were damaged and goods were soiled. Personal and company automobiles were destroyed. Such expenses were obviously too much for the businesses and the government to bear. The state had to put police and firefighters to task in resolving the situation and rescuing people. The apparatuses used during the exercise were just part of the great expenditures. Businesses took a couple of years to come back to normalcy.
Benefits of Flood Insurance
Owing to the gross effects of the previous floods and the difficulty in reviving an affected business, most people resolved to find a good insurance scheme. Insurance companies, in practice, offer a cover for any business in case of losses in order to help it maintain its normal operation despite the economic turbulent it might go through.
The companies that offer the flood insurance cover to homeowners are at present very few since it came into being very recently. Most of the people and businesses resort to the FEMA insurance. Homeowners insurance is very costly. However, the whole scheme is worth the investment.
Insurers cover for both the building and the property. The compensation varies from one company to another. Most of the companies will offer about 125,000 dollars for a damaged building and up to 100,000 dollars for any possessions. Such support has helped very many businesses to recover.
Thousands of American citizens who never had flood insurance were left homeless and only depended on the support of the government. The situation prompted many to apply for flood insurance. Effective disaster preparedness needs to possess an insurance cover, especially for the businesses and homeowners residing in areas of potential danger.