They say “hindsight is 2020” which means – “It’s easy to know the right thing to do after something has happened, but it’s hard to predict the future.” There are too many folks in the greater Houston area and even down South in Rockport, Tx that understand this all too well.
Further, many folks can relate to the point that any kind of insurance is a pain but if you have it when it is needed, you are grateful. Insurance is a fee, or premium, that we pay each month or year until a disaster or accident occurs and you have to call on that policy for any damages.
This was the case with many in the Houston and Rockport areas this past August when Hurricane Harvey struck hard and likely the case with any type of catastrophe, they are unexpected. So, we thought we’d cover a few details and things to consider with regards to flood insurance, more particularly
What you should know about flood insurance
Water damage isn’t the same thing as flood damage
A lot of people aren’t aware of the fact that water damage is different from damage caused by flooding. Most home owner insurance policies will cover water damage within the house, but how it is covered depends on how the damage occurred. To most home owners, water damage is water damage, but insurance agencies see the damage and its cause very differently. For example, if your roof leaked due to a storm thus causing water damage, that would likely be covered under your Windstorm insurance policy. If your water heater in your attic leaked, that would likely be covered under your home insurance policy. Be sure to check with your insurance agent or your insurance policy to see what it specifically covers. As, it is better to know what you have before you need it. Flood insurance is a completely separate policy and if not required (not in the flood plain), it usually doesn’t get added to your mortgage escrow. Know the difference for yourself by getting in contact with your insurance broker and educating yourself.
You can have flood insurance if you aren’t in a flood zones
A common myth is that you won’t need flood insurance if you don’t live in a flood plain, or you are in a low flood zone. The reality is, it’s a good idea to have flood insurance even if you don’t live in a flood zone at all, especially when you live near bodies of water. As you know the Gulf Coast is in our back door with many rivers, bayous and small bodies of water. Further, as the climate changes, it is bringing with it new storms of heavy forces that we’ve never seen before. The reality is that we can’t know where flood zones are going to pop up in the future, so having flood insurance added to your home is absolutely a great idea. As always, feel free to have a conversation with your insurance agent to discuss your options and premiums.
It can give you peace of mind during a storm
If a storm occurs and there is flooding in your area, or even in your home, having the proper insurance in place can give you peace of mind to focus on all of the other things that are going on in your life, such as keeping your home secure and making sure your loved ones are safe. Insurance will give that reminder that your home has the protection it needs so you don’t need to concern yourself with unnecessary worry, or financial burden.
Helps you recover from losses
If there is flooding damage, you’ll be happy to see that having the proper insurance policy in place will pay off greatly, by helping you and your home recover from the flooding damage, whether it’s an inch or four feet. Sure, it may seem like you can’t afford the extra $400 (or whatever the premium is) per year for the flood insurance but consider the amount of money you will save by being able to rebuild your home and replace your contents if it does. (For example, if you pay $400 for 20 years, that total premium would amount to $8000 over that 20 years . Now, if you get flooded, depending upon your policy you would easily use that amount to rebuild for a foot of water. Consider a $150,000 building and $50,000 contents policy versus $8000 over 20 years – huge benefit don’t you think?)
Hopefully this has helped you understand the benefits around flood insurance. The bottom line is that flood insurance has a lot of benefits and the only downfall is the annual premium, the rest will speak for itself, as per our sample example.) Regardless of the main reason why you are considering getting flood insurance, it’s definitely something to seriously consider adding to your home’s protection plan.