What Homeowners Need to Know About Flood Insurance
Flooding is the most common natural disaster in the United States. But surprisingly, homeowner’s insurance doesn’t cover damages caused by flooding. While flood insurance can be confusing, we’ve answered some of the most frequently asked questions to make sure you know how to get the protection you need.
How much does flood insurance cost?
On average, flood insurance costs around $700 per year. The rate fluctuates depending on how likely it is that your property is going to experience a flood. Call Texan today, to assess your risk.
Is flood insurance expensive?
Considering that the average flood damage claim is $52,000, paying $150-$700 a year for flood insurance isn’t too expensive.
Is flood insurance required?
Depends, flood insurance is not required unless you live in a high-risk flood area. You can check to see if you’ll be required to get flood insurance by FEMA on their website.
Can flood insurance be escrowed?
Yes. As of January 1, 2016, all lenders must offer the option for you to escrow flood insurance premiums. All residential properties in flood hazard areas must have their flood insurance premiums and fees escrowed.
What does flood insurance cover?
Flood insurance covers damages up to the amount specified in your policy, which caps out around $250,000. Here are things that flood insurance covers:
- Appliances: Any appliance damaged from a flood will be covered by your flood insurance. The food inside your refrigerator and freezer, however, will not be covered. You might be able to get those covered by your homeowner’s insurance.
- Major Systems: Your HVAC, electrical, and plumbing systems are covered under your flood insurance. Solar energy systems are also covered, as are water and fuel tanks and the water and fuel in them.
- Carpeting: Getting new flooring after a flood can be a major headache. Fortunately, carpeting is covered by flood insurance.
- Window Treatments: Blinds and curtains are generally covered by flood insurance.
- Built-In Cabinets and Bookshelves: Damaged built-in cabinets and bookshelves are covered by flood insurance, but undamaged ones are not.
- Attached Staircases: If the flood caused the earth to move and damage an attached staircase, then it will be covered by flood insurance.
- Detached Garage: Up to 10% of your total building coverage can be used toward a detached garage that is used for limited storage and parking.
- Personal Property: Anything you used on a normal basis that was damaged by a flood can be covered. This includes clothes, furniture, and electronics.
- Valuables: There’s a $2,500 provision for valuables like artwork.
What does flood insurance not cover?
Flood insurance does not cover furniture and personal property located in a basement. Also not covered is:
- Damage caused by moisture, mildew, or mold that could have been avoided by the property owner or which is not attributable to the flood
- Damage caused by earth movement, even if the earth movement is caused by flood
- Additional living expenses, such as temporary housing, while the building is being repaired or is unable to be occupied
- Loss of use or access to the insured property
- Financial losses caused by business interruption
- Property and belongings outside of an insured building, such as swimming pools, hot tubs, trees, plants, wells, septic systems, walks, decks, patios, fences, seawalls, hot tubs, and swimming pools
- Currency, precious metals, and valuable papers, such as stock certificates
- Most self-propelled vehicles, such as cars, including their parts
Where can I buy flood insurance?
You can buy flood insurance from any reputable insurance agent. You want to work with a company that knows the area, so we encourage you to reach out to us for your needs for flood insurance in Houston.
When does flood insurance take effect?
In Texas, there’s a 30-day waiting period before flood insurance takes effect.
Who provides flood insurance?
The National Flood Insurance Program (NFIP) provides flood insurance, which you can secure through your insurance agent. You can also purchase flood insurance through other insurance companies. However, availability is dependent on numerous factors. Call Texan today to see if you qualify.
Is there flood insurance for renters in Texas?
Yes, renters can buy up to $100,000 in coverage for the contents of their home in addition to their standard renter’s insurance policy.
Does homeowner’s insurance cover flooding?
No, home insurance does not cover flooding due to natural disasters.
Does renter’s insurance cover flooding?
No, renters insurance does not cover flooding due to natural disasters.
Does car/auto insurance cover flooding?
Car insurance can cover car flood damage if you have the right policy. Talk to your insurance agent to see if your car is covered.
Do I need flood insurance?
Yes, all homeowners and renters should get flood insurance, considering that 90% of natural disasters involve some form of flooding, which isn’t covered by homeowner’s or renter’s insurance.
Flood insurance will add a small cost to your monthly payments, but it’s a small price to pay for the peace of mind it brings. Find out more about flood insurance by visiting our website, and contact us for a free quote!