Why Do You Need Flood Insurance in Southeast Texas?

Data from the Federal Emergency Management Agency (FEMA) shows that weather-related flooding is common in Texas. In 2017, Hurricane Harvey, a Category 5 storm, ravaged Southeast Texas, leading to billions in insured losses. This is a prime example of why flood insurance is so vital in Southeast Texas. Here’s some more information on this topic.

Importance of Flood Insurance

Many of the homeowners affected by Hurricane Harvey are still struggling to get back on their feet. Moreover, the severity of flooding is likely to increase due to climate change, according to a recent article published in the Washington Post. The devastation that comes with flooding disasters is compounded when you don’t have flood insurance, especially because standard homeowners insurance policies typically exclude weather-related flooding.

Is Flood Insurance Mandatory in Texas?

Flood Insurance for homeowners is not required by law. However, many brokers and mortgage lenders require it if your house is in a high-risk flood zone. Most parts of Southeast Texas are susceptible to flooding; this means that anyone who owns a home in this area should ideally get flood insurance.

Flood Protection Policy

  • How Much Does Flood Insurance Cost in Texas?

The average cost of flood insurance policies in Texas is $700 per year. However, the premiums vary based on the location and the value of the home, and the belongings inside the home. Your claims history and credit score may also affect your insurance rates.

  •   NFIP Flood Insurance

The government-backed National Flood Insurance Program (NFIP) is the most common flood insurance option. It may be the only option in high-risk flood zones. The NFIP policy comes with a personal property coverage limit of $100,000 and a dwelling coverage limit of $250,000.

  • Private Flood Insurance

You can also opt for private flood insurance from regular insurance providers. Depending on the insurer, flood insurance can be an endorsement on your homeowners insurance policy or a standalone policy. While private flood insurance may be more costly compared to NFIP insurance, it is more customizable, and the coverage limits are generally higher. However, if your home is located in a very high-risk zone, you may not qualify for private insurance. In this case, you can rely on NFIP insurance.

What Does Flood Insurance Cover?

Flood insurance offers the broadest way of protecting your home against flood damage. The typical flood insurance covers your HVAC systems, appliances, foundation damage, flooring, support structures, and plumbing. Usually, ten percent of the coverage can pay for the cost of rebuilding your detached garage. While flood insurance policies cover most of the rebuilding costs for both your home and garage, you should be aware of the policy exclusions. For instance, flood insurance doesn’t cover erosion caused by flooding, lost income, vehicle damage, and damages to the sewer system.

When considering which flood insurance options are right for you, reach out to our experts at Family Financial Insurance Group. We will help you find an affordable flood insurance policy that suits your needs.

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