An excessive number of homeowners are under the impression that they do not require flood insurance. A report from the National Association of Insurance Commissioners says that only 5% to 15% of homes have it. New data from FEMA, on the other hand, shows that flooding affects 99% of areas in the U.S.

Even worse, many people think that their homeowner’s insurance covers water damage. But even the best home insurance doesn’t cover flood damage. If your home floods and you don’t have flood insurance, you could lose a lot of money. To give you an idea of how much this is, the National Flood Insurance Program (NFIP) usually pays out on flood claims.

What Is Flood Insurance and How Does it Work?

A flood insurance policy protects your house and belongings from damage caused by floods. While homeowners insurance usually doesn’t cover storm damage from hurricanes and heavy rain, this is a different kind of insurance. Most people who buy flood insurance for their homes do so through the National Flood Insurance Program. However, you might be able to find a policy on the private market.

Problems that flood insurance can cover include:

  • Storm waves
  • Storm-driven river and stream flooding
  • Flash floods

There is a 30-day waiting period before NFIP flood insurance coverage starts. This means that you can’t file a claim for damage that happened during the waiting period. There is less or no waiting time with some private flood insurance companies. As an example, Zurich Residential Flood Insurance doesn’t make you wait.

Floods can damage or destroy your home and goods. If this happens, you can file a claim with your flood insurance company and get up to the limit of your policy. You would be covered up to the amount of your NFIP policy, which in this case would be $250,000. Some homes buy private flood insurance as an “excess” policy to get extra protection on top of their NFIP plans.

How Much Does Texas Flood Insurance Cost?

It costs about $56 a month for about $300,000 in building and personal property coverage on flood insurance in Texas. Based on our study of NFIP statistics, this is about 8% less than the national average. 

People who live in the Texas places with the most NFIP flood insurance pay as little as $516 a year for League City, which is farther inland, and as much as $1,444 a year for Houston. 

What Does Insurance Cover for Flooding?

In general, flood insurance has two key parts: dwelling (your house) and goods (your things). When you buy flood insurance, the company you buy it from may let you choose between a policy that only covers the building, a policy that only covers the belongings, or both.

Coverage for Homes

Dwelling coverage, which is also known as building coverage, helps pay to fix or rebuild your home after damage from a flood. If flood water harms your pipes and electricity, for example, the dwelling coverage in a flood insurance policy would pay to fix or replace it.

The most that NFIP flood insurance will pay for a home is $250,000. There is a chance that you can get more home insurance on the open market. Like, Flood Guard sells plans that cover up to $5 million in home damage, and Neptune Flood Insurance covers up to $4 million in home damage.

Coverage of Contents

Contents coverage, also known as personal property coverage, protects things like clothes, furniture, and electronics. The goods covered by a flood insurance policy would pay to fix or replace damaged items like furniture in your living room.

What Doesn’t Flood Insurance Cover?

Flood insurance does not cover every kind of damage that can be caused by water. The following are typically excluded from coverage under an NFIP flood policy:

  • Cracked pipes can cause damage, but home insurance will cover that kind of harm.
  • Things like decks, patios, swimming pools, septic systems and greenery that are not inside your building.
  • Mould and mildew that can be stopped.
  • Inhabitable home costs, such as hotel stays.
  • Damaged cars (the comprehensive part of your car insurance covers damage to your car caused by flooding).

What Does Texas Flood Insurance Cover?

A normal NFIP flood insurance policy comes with two main types of benefits, which can be bought separately or together.  

Coverage for Building Property 

This covers fixing or rebuilding your house or garage if they are damaged in a flood. The NFIP’s highest building property coverage limit is $250,000. This means that no matter how much damage there is, the NFIP will pay the most for fixes.

Personal Property Coverage

If your things get ruined in a flood, this type of insurance will pay to fix or replace them. That means your furniture, tools, clothes, and everything else you own. The most that the NFIP will pay for personal items is $100,000.

There is also a different out-of-pocket fee for each plan. This is the amount you have to pay before your insurance starts to pay for things. That means you’ll have to file two separate claims with two different deductibles if your home and things are damaged in the same flood.

How to Get Texas Flood Insurance

When you’re ready to buy flood insurance, make sure you look at quotes from both the NFIP and private companies. If you have homeowners insurance, your company offers the NFIP plan. If not, it may also offer private flood insurance. 

Policygenius is a good place to compare home and flood insurance choices if you need help finding where to look for quotes. We can help you compare quotes from the NFIP and private flood insurance companies because they are allowed to do so. 

Private Flood Insurance vs. Coverage Through the NFIP

Most of the time, private flood insurance has higher coverage limits and extras that you can’t get through the NFIP, which is highly controlled. This includes replacement cost coverage for your items or loss of use coverage to help pay for food and lodging if your home is badly damaged and you have to leave. 

Final Thoughts

Working with the Texas insurance brokerage can give you the opportunity to evaluate options on both sides of the equation because they can collaborate with both the National Flood Insurance Program (NFIP) and private flood insurance companies.

If you want to find the best Flood Insurance Policy, there are many things you should think about. You can talk to an independent insurance agent about your choices, decide where to put your coverage and make a plan that fits your family and your budget. Now is the time to have Insurance For Texans. Look over your insurance and make sure you are covered in case of a flood.