Do I Need Flood Insurance?

Texas has been hit on all sides by severe flooding. From San Antonio to Houston Texas and beyond, Texans have been plagued by flooding. Lives have been lost, and some people may still be missing. Many Texans have lost their homes and all of their possessions. People may have lost their businesses and their ability to work. With all of the recent Texas flooding, you may be wondering, do I need flood insurance?

Many of us don’t understand the damage that can be done by flooding. Not only can it destroy the flooring, which seems obvious. Flood waters can destroy the walls, damage the electrical wiring, and break furniture as flood waters slam it against walls. We’ve all seen the photos and videos of cars being swept away. If flood waters can move cars and trucks, they can do great damage to our homes and businesses.

I’m Covered for Flood if it’s a Natural Disaster, Right?

You might think that flood damage is already covered under your regular policy. It’s not! Your everyday homeowners insurance does not cover flood damage. So too, you should check any commercial policy that you have. Many don’t include flood damage to your business.

Also, might think that if the flood is declared a natural disaster by the President that you are covered by federal disaster assistance programs. Federal disaster assistance typically comes in the form of a low-interest loan to help cover flood damage. Federal money does not come in the form of a check to cover your losses. Even then, those loans must be repaid along with any existing mortgage.

Should I buy Flood Insurance?

At least 25 percent of businesses that close after a flood never reopen. From 2010 to 2014, the average commercial flood claim amounted to nearly $89,000. Flood insurance is the best way to protect your business from devastating financial loss. Learn more about commercial flood insurance.

Just a few inches of water from a flood can cause tens of thousands of dollars in damage. From 2010 to 2014, the average residential flood claim was more than $39,000. Flood insurance policy premium cost around $700 per year. Learn more about residential flood insurance.

Buy flood insurance before you need it. There is a 90 day waiting period on most flood insurance policies. Don’t buy it as the rain is falling. If you have any difficulty with fighting your insurance company, contact us, we can help.