‘Turn Hopeless into Hopeful’ by Getting Flood Insurance in Texas
There are many states which require their residents to acquire a Flood Insurance. However, Texas is not one of them. While the State may not require you purchasing this policy, you may still need it for closing on your mortgage. The homeowner’s or renter’s Coverage provide coverage for a lot of things, but flood damage is not one of them. An Coverage which provides coverage for flood damage is essential to keep your home safe. Your property and your valuables will remain protected from damage caused by flash floods, hurricanes and even unpredictable tides.
Buying Flood Insurance through National Flood Insurance Program annually costs nearly $600 in the State of Texas. You can find better and cheaper rates by purchasing insurance from a private insurance company.
Necessity of Flood Insurance in Texas
State of Texas does not require homeowners to have Insurance, but that does not mean it is not essential. But you might still need it if you need a mortgage loan. The properties in high-risk areas for flooding must purchase this insurance policy.
Regardless of whether the State or Lender require you to purchase Flood Insurance, you should still buy one anyway. Texas has some of the highest fatality and property damage statistics in USA for flooding. There are extensive flood maps which highlight the areas of maximum vulnerability. However, even the non-marked areas see nearly one in flour floods. So, the insurance must be bought even if your property is in a low risk area. It is prudent.
Note: Get Access to the Best Flood Insurance Near Me
Flash floods, heavy rainfall, tropical storms, hurricanes; these phenomena happen fairly regularly in Texas. Sometimes, a federal emergency is declared. This can grant you some disaster fund loans. However, these funds are less than $10,000 on average. The damage to your flooring or property can easily exceed this amount. Therefore, it is prudent to purchase a separate Insurance Policy as soon as possible.
Flood Insurance Coverage Parameters
The national flood insurance has a max coverage limit of $250,000 for your property and $100,000 for its contents. You can purchase a larger policy from a private agency. A landlord is generally responsible for protecting the structure, even if it is rented. Therefore, the coverage limit for a renter would be $100,000 in personal property damage in National Insurance Program.
A Insurance Policy generally provides coverage for the following;
- Standard Home Appliances
This includes the simple systems that are found in every house. Such as electrical system, water heater, furnace, plumbing, heating and air conditioner systems.
All the woodworks are included in this category. Such as built-in cabinets, bookcases, paneling etc.
Refrigerator, washing machine, oven, microwave and many other appliances are covered. The same applies to the personal items; such as clothing, electronics and furniture.
Foundation and support structures; such as stairs, pillars, beams etc.
- Detached Garage
10% of the policy’s dwelling coverage is applied to a detached garage. This is the maximum limit.
Exclusions in a Flood Insurance
The National Flood Insurance Program has a number of exclusions in the policy. You might wish to familiarize yourself with them if you do not wish to receive incomplete coverage. Following are some of the popular exclusions;
- The policy does not pay if the damage is caused by natural earth movement. This includes appearance of a sinkhole, landslide or earthquake. It is possible the earth movement is caused by flooding. Regardless, the policy will not pay.
- Any damage sustained by the basement or its contents.
- Sometime, the damage from sewer backup is not covered.
- Any damage done to your vehicle. You would need auto insurance for such coverage.
- Lost income or temporary relocation due to the flood will not be covered by the policy.
- Many external property features will not receive coverage. Such as plants, deck, patio, fence, walkways, swings etc.
Cost of Flood Insurance in Texas
The average cost for buying this insurance policy through NFIP is $595 in the State of Texas. However, the rates can vary very much. There are many factors which determine your insurance premium. Such as the location of your house, the elevation of your property, frequency of occupation etc. The rate of annual premiums can be anywhere from $200 to more than $2,000. The largest cities in the State of Texas can offer price range from $468 to $1,117 a year.
The most influential factors in determining the cost for flood Coverage are your property’s location on flood map and elevation. The frequency of occupation of the property is also important. There is an annual surcharge of $25 on the property for the insurance. However, it can increase to $250, if the property remains unoccupied for long periods of time.
Read more Article About Flood Insurance ;1) What to Know Before Buying Flood Insurance?
Get the Best Flood Insurance Services in Texas
SG Financial Inc. is the provider of the Best Flood Insurance Services in Texas. Our policy fully complies with the FEMA regulations. Our policies are fully customization. You can make alterations depending upon your preference. We can cover any holes left in the NFIP policies. You can get the best policy in the lone star state from us.