When you own waterfront property (or even a property close to a body of water), the risk of flooding is too big to ignore. Even areas seemingly safe from overflowing rivers and lakes are susceptible to flooding in Texas, as we saw after Hurricane Harvey in 2017. To mitigate losses and damages incurred from flooding, consider flood insurance.

What Is Flood Insurance?

This type of insurance policy is for the coverage against property losses from flooding. Because home and property insurance typically does not cover flood damage, a separate policy must be purchased.

Who Needs This Insurance?

If you own a home or business property close to a body of water, the risk of flooding is too great to ignore. In addition, if you wish to purchase a property at risk from flooding with an FHA or another government loan, you are required to purchase flood insurance in Texas.

How It Works

In the event your property is damaged by flooding, like with any insurance policy, you file a claim with the insurer who underwrote your policy. They come out to assess the damage, and you receive payment for the assessed damages. Given that the costs of repairing flood damage can run high, these policies are paramount in mitigating risk and ensuring your financial security should a flood occur.

Different Types Of Coverage

There are several types of insurance policies for flood damage. There are building-only policies (which cover damage to the real property), contents-only policies (for renters of properties at risk of flooding), as well as policies that cover both property and contents. In addition, policies vary by the level of flood risk of your property. Your rates will vary based upon the assessed location risk of your waterfront or water adjacent property.

Benefits Of Coverage Against Flood Damage

As mentioned above, most property and homeowner’s insurance does not cover flood damage. Because of this, in the event of flooding on your property, you are on the hook for potentially tens of thousands of dollars in damages that need to be repaired, in addition to potential losses from the flood-damaged contents of your home. To prevent the pain of paying out of pocket for property damage and destroyed possessions, it is prudent to insure against flood damage.

For a free flood insurance quote in Houston, Sugar Land, or the surrounding cities, get in touch with your Allstate insurance agent at J. Thomas & Associates.