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.
Building Coverage Contents Coverage Premium
$ 30,000 $ 12,000 $148.00
$ 50,000 $ 20,000 $196.00
$ 75,000 $ 30,000 $230.00
$100,000 $ 40,000 $257.00
$125,000 $ 50,000 $277.00
$150,000 $ 60,000 $296.00
$200,000 $ 80,000 $326.00
$250,000 $100,000 $348.00
If 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.
TriStar Insurance Professionals, based in Plano, TX, is a full-service insurance agency owned and operated by Roger Harkins. Specializing in consumer insurance programs inluding homeowners, auto, boat, and life insurance they also specialize in commercial insurance offerings for small to medium sized businesses. Low cost is always important, but far more critical in both the personal and business coverage arenas is making sure that there are no gaps in your coverage. Find out today simply by calling Roger Harkins or John Coyle at 469-464-5790 . The call and any quotes you request are always confidential and free!
