Thousands of under-insured homeowners in the path of Hurricane Katrina learned first-hand the financial devastation of flooding. Every home in the United States has a one in four chance of experiencing some type of flood damage every three decades according to the Federal Emergency Management Agency (FEMA). With the increase in global warming, more intense storms with their severe flooding will alter the financial future of those with no or minimal insurance for rising waters.

Flood zones are categorized by FEMA by their likelihood to experience flooding based on a once-in-a-century model that states a flood having a one-percent chance of being equaled or exceeded in any year. Areas rated an “A” are at the highest risk and all potential mortgage lenders offering a loan in an “A” flood zone will require the borrower to obtain flood insurance. Locals labeled “B”, “C”, “D”, “V” and “X” carry lower risks and the possibility that mandatory insurance might not be required.

However, lower risk doesn’t mean that you shouldn’t diminish the opportunity for severe flooding. Evolving weather patterns offer areas that historically have predictable precipitation and storm patterns experiencing record rainfalls and flash flooding that haven’t implemented wide ranging flood control infrastructure. Flood damage can also be caused by overwhelmed storm sewer systems backing up into your home.

Rates for policies vary from two to seven hundred dollars a year, based on your flood risk level. Plans restrict coverage amounts to $250,000 for structures and $100,000 in personal property. Florida leads the country with the largest number of flood insurance policy holders. The visual images of the homes in the path of Katrina should offer a stark reminder of why flood insurance in a benefit not a cost.