There are three main categories of flood risk that Houstonians should insure for.
The first is for flood damage that occurs due to plumbing problems. The two main causes of this type of damage are leaking or broken water pipes and overflows such as in air conditioning drain pans. Some homeowners insurance policies will cover this type of damage and some will not. I suggest checking your policy or asking your agent about your coverage. If your policy doesn’t cover this, you should consider upgrading to a better policy.
The next type of flood damage is driven rain that comes after windstorm damage. This is usually covered by homeowners policies. An exception would be coastal areas where this coverage is excluded. You would then need a separate windstorm policy with the heavy rain option for this.
The most destructive flood is the one that results from rising water. Houston has experienced frequent flooding in the past so it is advisable to insure against this risk. The homeowner’s policy almost always causes flooding from rising water, so a separate flood insurance policy is required. The cheapest way to get flood insurance is usually through the National Flood Insurance Program (NFIP). FEMA requires this program and the federal government makes payments for covered losses. You can get coverage for content only or for home and content. This insurance is also available for companies. You get NFIP flood insurance at a regulated rate from companies or private agents that participate in the program.
NFIP flood insurance rates depend primarily on what flood zone you are in, how much coverage you want, and what deductible you select. The lowest risk areas are in zones B or X. These areas generally qualify for the “preferred” rate with a $500 deductible.
Below are some examples of preferential rates:
CONTENT ONLY:
$8,000 for $58 per year
$20,000 for $113 per year
$40,000 for $147 per year
$100,000 for $221 per year
HOME PLUS CONTENTS:
$20,000 house plus $8,000 content for $119 per year
$30,000 / $12,000 for $149 per year
$50,0000 / $20,000 for $196 per year
$100,000 / $40,000 for $257 per year
$200,000 / $80,000 for $326 per year
Texans may call my office at 281-537-2700 for more information. Or visit our Texas flood insurance website.
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