Flood Insurance: Texas Homeowner’s Insurance Does Not Cover Flood Damage
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.
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 Flood Facts as of March 2010, Everyone lives in a flood zone. In a high-risk area, your home is more than twice as likely to be damaged by flood than by fire. The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion. Last year, about 25% of all claims paid by the NFIP were for policies in moderate-to-low risk communities. Since 1978, the NFIP has paid over $36 billion for flood insurance claims and related costs (as of 3/22/10). You can read these and many more flood facts at http://www.floodsmart.gov/floodsmart/pages/flood_facts.jsp
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.