12 Aug Galveston Texas Flood Insurance
Residents of Galveston, Texas are no stranger to the flood risks that face their properties. While the city’s location along the Gulf of Mexico provides a scenic setting that is not matched by many other locations, it also means that the city is first in line to suffer the wrath of tropical storms and hurricanes. Heavy rain from inland storms can also cause flooding in the city. With these types of events causing flooding on a fairly regular basis, it is important that Galveston residents take appropriate precautions and consider purchasing flood insurance.
The first item of consideration is location. Residents living in Special Flood Hazard Areas may legally be required to purchase flood insurance if their home or property is financed through a federal agency. Some private lenders will also require their clients to obtain coverage. Individuals with property located in non-SFHAs are not exempt from the risk of flooding, so no one in these areas should brush aside the topic until they have done thorough research.
| Special Flood What?
The term Special Flood Hazard Area or acronym SFHA is commonly seen in articles about flooding. A SFHA is an area of land where properties have a one-in-four chance of being flooded at least once during a thirty year period. |
A second consideration is price. Flood insurance policies can be pricy, especially in areas of highest risk. Federal legislation is also causing premium rates to increase, which can put a financial strain on property owners. Galveston residents can choose policies from one of two programs: The National Flood Insurance Program (NFIP) and the National Catastrophe Flood Insurance Program (NCIP). The NFIP is federally-backed, while the NCIP is privately insured. This difference can drastically change the premiums that a property owner may pay. Many insurers find that the NCIP offers lower premiums than the NFIP, even if the property owner is receiving a subsidized premium rate.
Finally, a third consideration is the type of coverage offered. Each property in Galveston has features that makes it unique from the next property whether it is the size of the building, additional structures constructed on the same parcel, special amenities like decks or porches, etc. The NFIP and NCIP cover these properties and their unique features differently, with the NCIP typically offering higher coverage limits and more comprehensive coverage.
Galveston property owners may be a little hesitant to pay yet another premium to obtain an insurance policy, but it is important to remember that the premium can be a small investment in comparison to the out-of-pocket costs they might incur without a flood insurance policy. Even as little as an inch of flood water can result in several thousand dollars in damage, and it is easy to reach tens of thousands in damage if flood waters increase to a foot or more. Standard homeowners and business property insurance policies do not cover flood damages, so any that occur would have to be paid for out-of-pocket or with additional loans.
The risk for floods and related damage is high in Galveston, but with proper flood insurance coverage, property owners can enjoy their life along the Gulf and still have peace of mind that they are financially protect if flood damage affects them at any point in time. Contact us now for more information about the Galveston 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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