10 Things to Consider When Buying Flood Insurance

Flooding is a major cause of property damage in Texas.

Most people don’t realize this but flooding is is one of the main causes of damage to homeowners in Texas. Although flooding is not covered under your regular home insurance policy you can get flood insurance coverage through the National Flood Insurance Program(NFIP). congress established the NFIP in 1968 to protect people living in areas that are prone to flooding.

Do you need flood insurance?

If you live in an area designated as a flood zone you should absolutely consider buying flood insurance. That being said it is estimated that 40% of flood claims in Texas come from areas outside designated flood zones. IF you are inside a flood zone and you have a mortgage on your home it is likely your lender required that you maintain flood insurance. If you are not in a flood zone you can still purchase a flood insurance policy, usually at a significantly reduced rate.

Speak to your insurance agent.

If you are considering flood insurance for your property we highly recommend speaking with your agent. All of our licensed insurance agents here at Guidepoint Insurance can walk you through the ins and outs of your current home insurance policy and talk to you about the advantages of adding a flood insurance policy. Since a standard home insurance policy does not cover flood damage it is a good idea to weigh your insurance options and find out if flood insurance is right for you.

Determine whether your home is located in an area prone to flooding.

The first thing we will do for you is pull some flood zone information on your property. Since flood zones are determined by local government agencies base on historical data this can help you determine how great your risk is. This will also help up determine the rating factors for your insurance policy. As you can imagine a property not in a designated flood area will have a much lower premium than a property situation in a 100 year flood zone.

Look at your policy and review your current coverage.

Usually the best course of action is to start with a review of your current policies. This will help us determine if you are covered for flood damage as well as other perils such as wind, hail, fire, and theft damage. With constant shifts in the Texas insurance landscape we recommend reviewing your coverage every 2 years. If you are ready for your review or have any questions about insurance please give us a call at 972-755-3969.