12 Aug Houston Texas Flood Insurance
A hotbed of commerce and social life, Houston, Texas is the largest city in the Lone Star State and the fourth largest in the United States. So many positive attributes have combined to draw individuals and proprietors to the area, a good number of whom may not be aware of the flood risks that the city is subjected to. In fact, Houston is quite at risk for flooding, and unprepared property owners may find themselves in quite a financial predicament over that very issue.
Low-lying, Houston has historically been prone to floods. Early settlers did their best to drain the land, civil projects during the Great Depression created some helpful infrastructure as well, but the combination of location and sea level setting continues to leave the city prone to flooding on a regular basis. Tropical storms, hurricanes, and heavy downpours from low-pressure systems that blow in from the west are some of the main causes of flooding in the city.
The Federal Emergency Management Agency (FEMA) has designated many areas of Houston as Special Flood Hazard Areas (SFHA). Properties in a SFHA have a one-in-four chance of being flooded at least once during a thirty year period. Any property in a SFHA that is mortgaged by a federal program is required to be covered by a flood insurance policy, and many private lenders will have recommendations about flood insurance for their mortgaged properties in these areas as well. Additionally, it is important to know that a full twenty percent of FEMA’s claims each year are for properties located outside of a SFHA, meaning that almost no property is guaranteed to be safe from flooding problems.
| Procrastination Doesn’t PayFlood insurance policies are not activated immediately upon approval. Instead, waiting periods of fifteen to thirty days are imposed on NCIP policies and NFIP policies respectively.It’s easy enough to say “I’ll take care of that tomorrow,” but waiting that extra day to purchase a flood insurance policy might just be the difference between having coverage for a flood event or not. |
Financially conscious property owners may question the need for flood insurance, as it is an additional expense that affects their bottom line. Purchasing another form of insurance seems unnecessary and excessive, yes? What some property owners do not understand is that standard homeowners and business insurance policies do not cover flood-related damage. With flood events in Houston leading to damages costing residents billions of dollars, it is perhaps easier to see what a flood insurance policy protects against and why it is a good investment.
Property owners in Houston can purchase flood insurance policies through one of two sources. The first, the National Flood Insurance Program (NFIP), is a government-funded program that offers to policies to property owners all across the United States. Traditionally, this has been the lone source of flood insurance provision since its inception in the 1960s. More recently, a second option has also become available. The National Catastrophe Flood Insurance Program (NCIP) is a privately-backed insurance program offered in only a select number of states, including Texas. These policies sometimes provide more flexible coverage and premium rates than the NFIP.
Regardless of the type of property an individual owns in Houston, or where in the city that property is located, obtaining a flood insurance policy is one way to ensure financial protection against an inevitable fact of life that comes with living in the city. Contact us now for more information about the Houston 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.
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