Posted by John Coyle on Sun, Jun 14, 2009
Yes, it’s true. Flood is not a covered peril even if you have an “all perils” (or HOB) homeowner’s policy. In order to be covered from floodwaters, you must purchase a separate flood policy written through the National Flood Insurance Program (NFIP).
Many homeowners believe that if they do not live in a flood zone they don’t need flood insurance. However, in 2008, one-third of all NFIP claims paid out went to homeowners in low-risk communities.
Texas Preferred Flood Insurance Is Inexpensive
If you currently live in a low or moderate flood zone (B, C or X), your flood insurance rates are very affordable. The NFIP offers rate packages that you may purchase to protect your home and contents.
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Building Coverage
$ 30,000
$ 50,000
$ 75,000
$ 100,000
$ 125,000
$ 150,000
$ 200,000
$ 250,000
|
Contents Coverage
$ 12,000
$ 20,000
$ 30,000
$ 40,000
$ 50,000
$ 60,000
$ 80,000
$ 100,000
|
Premium
$ 148,000
$ 196,000
$ 230,000
$ 257,000
$ 277,000
$ 296,000
$ 326,000
$ 348,000
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f you are renting or if you live in a condominium or town home, you may purchase a contents only policy that runs from $80.00 for $12,000 of coverage up to $201.00 for $100,000 coverage per year. Contact our agents right now for a free quote.
Texas Flood Insurance Costs Less Than A Federal Disaster Loan
Uninsured individuals that suffer water damage from flooding may be forced to take out a loan in order to pay for the destruction to their property. The Federal Emergency Management Agency (FEMA) gives assistance to uninsured homeowners through the purchase of a Small Business Administration loan. This is typically a loan that must be paid back with interest. *For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
A Texas Flooding Loss is More Probable Than a Fire Loss
Yes, it’s true. *According to the NFIP, during a thirty-year mortgage, your chances of having flood damage are about 26% compared to a 9% chance of having a fire. In fact, Texas has a long history of surviving major disasters. Since 2000, four hurricanes impacted Texans along with two tropical storms. During this same time, FEMA made eight other major disaster declarations. Flooding occurred in six of those eight severe storms. Altogether, it took more than $3,181,000,000 in disaster assistance to help pay for the damages sustained in only eight years’ time.
You May Pay for a Flood Insurance Policy and Not Be Insured When a Storm Hits
How can that be? Unlike most other lines of insurance business, a flood insurance policy does not go into effect for thirty days following its purchase. That means that by the time a storm is in the Atlantic Ocean and on it’s way toward the United States, it’s already too late for Texans to be insured when it makes landfall. The only exception is when purchasing a home. Your flood insurance goes into effect immediately when you pay your annual premium at your home closing.
Our Agents Keep Homeowners Afloat
When rising water comes your way, your flood policy will keep you financially afloat. Get yours today. Contact John Coyle at jcoyle@tristarins.com or call 214-387-0600.
Posted by John Coyle on Mon, Mar 16, 2009
Flood insurance. Those two little words may mean nothing to you now, but consider this: according to the Federal Emergency Management Agency (FEMA), 25% of flood insurance claims hail from areas that are not labeled as flood zones and result in over a billion dollars of property damage each year. In response to the soaring cost of taxpayer funded disaster relief for flood victims, Congress created the National Flood Insurance Program (NFIP) to develop flood management plans and underwrite insurance policies.
As homeowners’ insurance policies do not cover damages resulting from flood waters, federal flood insurance is the only coverage that protects your property and belongings from damage caused by rising water due to flooding. So even if there is only the slightest possibility of flooding in your area, having adequate insurance can offset the high cost of repairing water damage in your home or business, because not all water damage resulting from a flood occurs in flood zones. Tri-Star Insurance Professionals, Inc. located in North Plano and servicing North Dallas, Frisco, McKinney, Allen and surrounding areas, knows what you need to keep your property high and dry.
To offset the cost of abundant water damage claims, FEMA mandates that any homeowner with a government-backed mortgage such as an FHA or VA loan must carry flood insurance in a high-risk zone. So that means that people with homes or businesses that are situated on flood zones are required to purchase flood insurance policies. Obviously, if you own a home or business in Texas and do not currently pay for flood insurance you are not considered “high-risk”, but that doesn’t mean you are out of the water.
If you are uncertain whether or not you reside on a flood zone, there are many easy ways to find out. Flood-Zone.net is a great website to quickly determine your flood risk and learn interesting facts about floods such as:
- Floods are world’s the most common natural disaster
- Floods do not just occur near bodies of water such as lakes, ponds or oceans
- Flash floods cause more fatalities in the US than any other natural disaster
- Floods can and do happen in areas previously considered out of reach
- Roughly one in four flood disasters occur in areas with a low to moderate flooding risk
Generally, flood insurance policies are affordable, especially for those not living in a designated flood zone. Tri-Star Insurance can not only help you purchase a reasonably priced flood insurance policy, but can help you save a bundle on your other policies as well. Tri-Star is an independent insurance agency, which means they have the ability to represent companies such as Safeco, Kemper, Hartford and Travelers to find you the best price. With Tri-Star, you have a choice.
If you want to learn more about federal flood insurance policies contact Roger Harkins of Tri-Star Insurance today at 214-387-0600 or visit them on the web at www.tristarins.com. Give yourself peace of mind by knowing your home and business will be covered in the event of a flash flood or heavy rains.
Posted by Roger Harkins on Tue, Apr 29, 2008
The Federal Emergency Management Agency (FEMA) estimated that 2,200 Texas residents who were affected by flooding from Tropical Storm Fay a handful of years ago who had flood insurance claimed close to $44 million in damages. Sadly, those residents who did not have flood insurance had to dig in their pockets for money to repair the damages, or file for emergency assistance funds, which they would eventually have to pay back. As flood season approaches the DFW Metroplex, Tri-Star Insurance in Plano is ready and waiting to talk about your property protection this year.
Although North Texas may not be as consistently threatened by tropical storms as residents closer to the Gulf, heavy rains that have been prevalent over the past few summers pose the same amount of danger by flooding to property that is close to a Texas lake or river. Just a few inches of water can bring thousands of dollars in restoration and repair costs. "I commend those Texas property owners who protect themselves by purchasing flood insurance," said Federal Insurance and Mitigation Administrator Anthony S. Lowe, who manages the National Flood Insurance Program (NFIP). "I strongly urge those who don't have a policy to buy one before the next flood," he added. "You can recover so much faster and more completely when you have flood insurance."
According to FEMA, everyone lives in a flood zone. There is no such thing as a home that cannot be flooded. Flood insurance protects you from the financial loss and devastation caused by flooding; federal disaster assistance funding, on the other hand, is normally a loan that you must pay back with interest. For homeowners with a significant amount of property and memories to protect, the option of federal disaster assistance is not a good substitute for insurance.
- Doesn’t my regular homeowner’s policy cover flooding?
One of the main reasons people get homeowners insurance, besides the requirement of insurance by their mortgage company, is for protection against a loss from fire. Texans, though, are far more likely to have flood damage than fire damage. Flood insurance is valuable coverage for your most important assets, your family home.
Most homeowners insurance does not cover floods. Flood insurance, like earthquake insurance, is designated as “single peril” insurance and is sold separately from homeowners insurance. Flood insurance protects against financial losses to homes and buildings and their contents, but not the land surrounding them. The coverage applies regardless to the nature of flooding, whether the flood is from heavy or prolonged rains, coastal storm surge, levee dam failure, blocked storm drainage systems, or other causes. To be considered a flood, the waters must cover at least two acres or affect at least two properties.
Flood insurance should cost the same wherever you purchase it, because the rates are set by the National Flood Insurance Program. As you work with the North Dallas-Plano-Frisco insurance agency of Tri-Star Insurance, you’ll gain not only peace of mind on the standard insurance coverage for your home, but you’ll learn of the value and need for affordable flood insurance as well. Start the process before the summer rains hit and call 214-387-0600 today!
Related Links
FEMA
How to Clean Flood Damage
Dallas Ft. Worth Restoration