18 Aug Austin Texas Flood Insurance
Sometimes when it comes to statistical risks, we as humans see small numbers and think, “Oh, that’s only a small chance. I will never be affected by that.” Residents of Austin, Texas may have thought that same thing about their personal flood risk many times, only to be unpleasantly surprised when flash flooding caused millions of dollars of damage to property in 2013. This is a prime example of why it is important to understand how and why even small flood risks must be taken seriously, and why flood insurance is so important.
Currently, only 10% of Austin is considered to be part of a Special Flood Hazard Area (SFHA) by the Federal Emergency Management Agency (FEMA). Within a SFHA, property has a one-in-four chance of flooding at least once during a thirty-year period. That is the minimum criteria an area must meet to receive special classification, but Austin residents can and do face flooding situations more frequently than that. Also, these SFHAs are often floodplains surrounding a specific body of water, but flooding can occur in any location in Austin at any time.
| Flash Flood Alley
Austin, Texas is located in an area known as “Flash Flood Alley.” The runoff potential in the area significantly increases the chance for flash floods and leads to situations where waters rise rapidly. During the 2013 floods, Onion Creek’s water levels rose 11 ft in a mere 15 minutes.
Source: USA Today. Nov. 7, 2013 |
Because the overall risk of flooding is low in Austin, it is understandable if some residents do not fully understand the financial risks they face by remaining without a flood insurance policy. Without fully investigating every aspect of an insurance policy, many property owners do not realize that their standard policies do not cover flood-related damage. This is often not realized until it is too late.
Another factor that may leave Austin residents willing to take their chances is the additional premium that must be paid if flood insurance is purchased. Between general maintenance, property taxes, and other insurance premiums, property ownership is very expensive. The extra premium needed to obtain flood insurance is a cost that some cannot afford and others may not want to provide. But the cost of a premium is very slight compared to the cost of repairing flood-related damages. Just an inch or two of water in a home or business can add up to $10,000 or more in damages. Without proper coverage, property owners must pay these costs out-of-pocket, or obtain loans to finance the cost of the repairs.
Once a resident of Austin makes the decision to purchase flood insurance, there are two providers from which to choose. The first is the National Flood Insurance Program (NFIP). This is a federally-backed program that is made available to property owners through local, regional, and national insurance carriers. The second provider is the National Catastrophe Insurance Program (NCIP). The NCIP is a newer, privately underwritten program currently available in a select number of states, including Texas. Austin residents should carefully consider the type and amount of coverage provided between each program, as there are significant differences in some areas.
Though the overall risk for floods may seem small, the best course of action for Austin residents is to prepare for that risk by obtaining a flood insurance policy and financially protecting themselves against flood-related damages. Contact us now for more information about the Austin Texas flood insurance.
All information is general in nature and is intended to provide guidance only. It is up to you to request specific coverage options, the agency and agent do not bear this responsibility. Always read the policy if there is a questions about coverage or a claim. If any information herein should conflict with your actual policy’s specific language, the policy language will be controlling.
Sorry, the comment form is closed at this time.