With all the devastation caused by Hurricane Katrina and possibly more from Rita in two days, its probably a good idea to consider flood insurance if your property is vulnerable. [Yet only about one-quarter of the homes in areas most vulnerable are insured against flood loss [Insure.com]](http://info.insure.com/home/flood/), according to the Federal Insurance Administration (FIA). In those areas, flooding is 26 times more likely to occur than a fire during the course of a typical 30-year mortgage.

[[FEMA’s official flood insurance web site [floodsmart.gov]]](http://www.floodsmart.gov/floodsmart/pages/index.jsp)

John Stossel of ABC News provided commentary on his experience with his [waterfront beach house that was washed away in a winter storm [ABC News].](http://abcnews.go.com/Business/print?id=94181) He contends that the federal government should not be in the insurance business. The low premiums (hundreds instead of thousands) actually encourages development in low lying areas. There is a cap on the amount covered but not the number of times the property owner can be reimbursed.

The average annual cost is $450 per month and many homeowners don’t realize flood damage is not covered in standard household insurance policies. Now insurance companies are offering [high end houses full coverage or supplemental coverage [REJ]](http://www.realestatejournal.com/forms/printContent.asp?url=http%3A//www.realestatejournal.com/buysell/taxesandinsurance/20050902-silverman.html%3Frefresh%3Don&skyscraper=undefined) in addition to the federal program.