Is Flood Insurance Really Necessary?

Is flood insurance really necessary? This is a question we receive quite a bit and we want to help our clients understand why it's sometimes essential. 

Unexpected storms and flooding happen all the time, especially in Texas. With flood insurance, you can take away the anxiety and know that your home is protected in case of these disasters. Homeowner’s policies do not cover this type of damage, so it is important to obtain this separate policy. Oftentimes, mortgage companies will require homeowners that are located in a floodplain to purchase flood insurance. However, contrary to popular belief, people that are located outside of these floodplains file more than 20% of flood insurance claims.

All flood insurance policies are regulated by FEMA (Federal Emergency Management Agency). Therefore, your flood insurance rate would be determined by FEMA. The amount of coverage requested, location, and flood zone, as well as the design and age of your home are all determining factors in what your rate will be. Every now and then, we will get hit with requests for flood insurance during an ongoing flood in hopes that it will be in effect ASAP. However, it is important to keep in mind that it takes 30 days for your flood insurance to go into effect. This means that the sooner you purchase it, the better. 

Don't be caught in a bad situation with a flooded home and no coverage. If you feel like flood insurance is something you need or are interested to see a quote, contact us today via phone (877) 892-4565, email ScottReed@Shop2Insure.com, or check out our website!