Insurer Group Reminds Homeowners of the Need for Flood Coverage

Many Texas homeowners are under the impression that flooding caused by rising water is covered under the standard homeowners insurance policy in Texas and often they discover that fact too late, according to Sandra Ray, public affairs director of Southwestern Insurance Information Service.

“A poll released last year by the Florida coalition, Hurricane Survival Initiative, revealed that 40 percent of the respondents believed flood damage was covered by their homeowners policy,” she said.

If we were to survey Texas homeowners we predict that number would be about the same, she advised.

“Hurricane season is just around the corner in Texas prompting some timely advice to homeowners,” the industry group said.

“Accu Weather recently predicted six hurricanes will make landfall this year and the Texas Gulf coast has a high likelihood of a hurricane during June and July,” Ray said.

“Flood insurance is available through the National Flood Insurance Program and sold by insurance agents throughout Texas,” she said. “The typical homeowners policy does not cover damage caused by flooding, but does cover wind-driven rain.”

The National Flood Insurance Program estimated that 90 percent of all natural disasters involve flooding and 25-30 percent of flood insurance claims are for losses in low risk areas. Experts also estimate that a home has a four times greater risk of flooding than burning during the course of a 30-year mortgage.

“It is important to mention that there is a 30-day waiting period before a new or modified flood insurance policy goes into effect, unless it is a condition for obtaining a mortgage.”

“Sadly, a large number of homeowners in the state find this out only after their homes have suffered the ravages of flood water,” she added.

We recommend that citizens talk to their insurance Agent about flood insurance before rather than after a storm when it will be too late, Ray concluded.