Insurance Agency Austin, Tx • Home Insurance • Business Insurance • Life Insurance • Auto Insurance •

Flood Insurance

It only takes a few inches of water, and your home could need major repairs. Yet most homeowner’s policies don’t cover flooding. Find out the facts, and then see us for flood insurance.

The Facts:

  • Many are at risk for floods.

    You don’t need to live near water to be flooded. Floods are caused by storms, melting snow, hurricanes, and water backup due to inadequate or overloaded drainage systems.

  • Flood damage is not covered by homeowner’s policies.

    You can protect your home, business, and belongings with flood insurance with us — up to $250,000 for the building and $100,000 for contents (amounts may vary contact us for details)

  • Contents coverage is separate, so renters can get flood insurance.

    Up to $100,000 contents coverage is available for homeowners and renters. Contents are not automatically included with the building coverage.

  • Up to a total of $1 million of flood insurance coverage is available for non-residential buildings and contents.

    Up to $500,000 of coverage is available for non-residential buildings and up to $500,000 of coverage for their contents.

  • There is usually a 30-day waiting period before the coverage goes into effect.

    Plan ahead so you’re not caught without flood insurance when a flood threatens your home or business.

  • Federal disaster assistance is not the answer.

    Federal disaster assistance is only available if the President declares a disaster. Flood insurance pays even if a disaster is not declared.

What is a Flood?

According to FEMA and the National Flood Insurance Program; anywhere it rains, it can flood. A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes , overtopped levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history; it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

Flood-hazard maps have been created to show different degrees of risk for your community, which help determine the cost of flood insurance. The lower the degree of risk, the lower the flood insurance premium.

Protect Yourself with Flood Insurance

Just a few inches of water from a flood can cause tens of thousands of dollars in damage. Over the past 10 years, the average flood claim has amounted to nearly $48,000. Flood insurance is the best way to protect yourself from devastating financial loss.

Flood insurance is available to homeowners, renters, condo owners/renters, and commercial owners/renters. Costs vary depending on how much insurance is purchased, what it covers, and the property’s flood risk.

All policy forms provide coverage for buildings and contents. However, you might want to discuss insuring personal property with our agents, since contents coverage is optional. Typically, there’s a 30-day waiting period from date of purchase before your policy goes into effect. That means now is the best time to buy flood insurance; so, you have the protection when you need it.

Homeowner

As a homeowner, it’s important to insure your home and its contents. Depending on your property location, your home is either considered at high-risk or at moderate-to-low risk for a flood. Your insurance premium will vary accordingly.

Moderate-to-Low Risk

Most homeowners in a moderate-to-low risk area are eligible for coverage at a preferred rate. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, building and contents coverage starts at just $129 per year.

If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn’t federally required, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it’s available, disaster assistance is typically a loan you must repay with interest.

High-Risk

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

Flood insurance premiums are calculated based on factors such as:

  • Year of building construction
  • Building occupancy
  • Number of floors
  • The location of its contents
  • Its flood risk (i.e. its flood zone)
  • The deductible you choose and the amount of coverage

Condo Owner/Renter

If you rent or own your condominium unit, it is a good idea to purchase both building (if you own the unit) and contents coverage. If you are a tenant, contents only coverage is available. The policy premium is based on several factors including the flood risk of the building that you occupy.

Moderate-to-Low Risk

Most condo owners or renters in moderate-to-low risk areas are eligible for coverage at a preferred rate for condominiums in moderate-to-low risk areas. Preferred Risk Policy premiums are the lowest premiums available through the NFIP, offering building and contents coverage for one low price. In fact, residential premiums start as low as $49 per year for Contents Only coverage.

If you don’t qualify for a Preferred Risk Policy, a standard rated policy is still available. Even though flood insurance isn’t federally required, anyone can be financially vulnerable to floods. People outside of high-risk areas file over 20% of NFIP claims and receive one-third of disaster assistance for flooding. When it’s available, disaster assistance is typically a loan you must repay with interest.

High-Risk

If you live in a high-risk area, a standard rated policy is the only option for you. It offers separate building and contents coverage.

The Residential Condominium Building Association Policy (RCBAP)

This form of the Standard Flood Insurance Policy insures residential condominium associations and thus the building in which your unit is located.

Flood insurance premiums are calculated based on factors such as:

  • Year of building construction
  • Building occupancy
  • Number of floors
  • Number of Units
  • The location of its contents
  • Its flood risk (i.e. its flood zone)
  • The location of the lowest floor in relation to the elevation requirement on the flood map (in newer buildings only)>
  • The deductible you choose and the amount of coverage

If you own your unit and it is located in a high-risk flood area, you will be required to purchase flood insurance if your lender is federally regulated or insured.