After last year’s devastation caused by Hurricane Harvey, it is imperative that you are equipped with all knowledge regarding disaster preparation. The 2018 hurricane season officially began on June 1st and will continue through November 30th. Typically, hurricanes arise unexpectedly, with little time to prepare. Just a few inches of water can cost thousands of dollars in damage; therefore, it is critical that your home and personal property are insured in the event of a major flood. We consulted local expert Jeff Sutherland with Sutherland Insurance Agency, LLC, who offered valuable insight regarding flood insurance and hurricane preparedness.
1. What insurance should l consider to protect the investment I have in my home?
The first type of insurance to consider is homeowners insurance, which protects you from most damages to your home, with the exception of flooding. Most policies in the Greater Houston area have a separate deductible (the part you pay when damage is done) for wind, hail, and hurricane claims. Additionally, because the risk of hurricanes is higher in the Gulf Coast area, insurance companies tend to charge more for coverage. Flood Insurance,however, pays for the damage done by rising water that comes in your home. The National Flood Insurance Program covers direct physical damage by flood to your building and/or personal property. To see the full list of what is and is not covered under the NFIP, click here.
2. When can I buy flood insurance?
You can buy flood insurance at any time, but you must keep in mind that all policies have a 30-day waiting period before coverage begins. For this reason, it is important to not wait for a storm to be reported before you decide to buy coverage, as it likely won’t pay for any damage that occurs during the waiting period in which the policy is not yet in effect. Therefore, if you’re buying a new home, you should purchase flood insurance at least 30 days prior to closing to ensure you have coverage on the first day of owning your home.
3. How much does flood insurance cost?
Most homes qualify for the preferred flood insurance program, which can range in cost from $275 to $450 per year. However, homes that are in a higher risk flood zone will have higher premiums. Coverage for these homes begins at $800 and up.
4. What conditions are necessary for flood insurance to cover damages?
Flood insurance covers overflow of inland or tidal waters and unusual and rapid accumulation or runoff of surface waters from any source. However, the flood must be a general and temporary condition of partial or complete inundation of two or more acres of normally dry land area or of two or more properties (at least one of which is yours).
5. What happens if my home floods but I don’t have flood insurance?
If the federal government decides to list the area as a Federal Disaster Area, then you would be eligible for federal disaster assistance. This comes in the form of a loan from the Small Business Administration to help pay for repairs to your home, which is typically paid back over 30 years with very low interest. As part of the loan process the government will require that you first file a claim with your homeowners insurance and be denied for any assistance – this is an important first step to helping your loan move quickly.
For more information on hurricane preparation, click here.