11 May Texas Flood Insurance
One of the best public relations campaigns in the United States advised potential tourists that “Everything’s bigger in Texas.” The sky, the delicious food, the history and culture- everything is bigger and better in the Lone Star State than anywhere else in the country, according to this slogan. But this light-hearted saying has a touch of hard truth to it as well. As many Texans know, the flood risk throughout the state is bigger than that of many other states. In one ten-year period, the damage incurred to insured properties totalled nearly two billion dollars. Even with such steep costs, many homeowners remain unprotected. Data from the National Flood Insurance Program (NFIP) suggests that only ten percent of homeowners in Texas are covered by flood insurance. It goes without saying that this is a big risk.
Texas homeowners need to become aware of their flood risk. Floods can come at any time, the result of heavy storms, hurricanes, or tropical storms. Several inches of heavy rain that falls in a short time is enough to make any area flood, but on extremely parched or on already saturated earth, that rain can turn into a catastrophic flash flood in a very short amount of time. Storm surge is powerful in every situation, but in areas that lie at, below, or barely above sea level, it can quickly cause flooding that will destroy a house and all its contents.
So if there is no place in Texas safe from risk of floods and the high costs associated with the damage, what can a homeowner do to protect their property? Purchase Texas flood insurance, of course! A majority of Texas flood insurance policies in the United States can be purchased through the National Flood Insurance Program (NFIP) by way of a national, regional, or local insurance agency that has a partnership with the NFIP. Texas flood insurance premiums offered through the NFIP will vary depending on where the home is located and what, if any, modifications have been made to protect the home against flood damage. Though the cost of the premium can vary because of these factors, the rate will not vary from insurance agency to insurance agency, as all agencies offering the policies will be offering the same rate the government sets forth.
Another option for Texas homeowners is to purchase insurance through the National Catastrophe Flood Insurance Program (NCIP). This program is underwritten by private firms and offered by private insurance agencies only. Rates for policies offered by the NCIP may be similar to those offered by the NFIP, but in many cases the rates may be significantly less. The coverage from the NCIP may be more comprehensive than that purchased from the NFIP as well. Homeowners will need to perform their own research to determine if one policy suits their need better than the other.
Texas flood insurance is an important investment for all homeowners, but especially those who call Texas home. With careful research, an affordable policy can be found, and it will provide peace of mind.
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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