Flood Insurance

Flood waters Could Cause Expensive Damage To Your Home

When the spillway on Lake Texoma overflowed, homes and business near the lake suffered major damage. Property located along the creeks and waterways near Sherman, Denison, and Bonham, Texas and areas in between these cities were damaged by flood waters. Many people were caught without any flood insurance to cover them. Most thought this would never happen. Like many people who live in flood prone areas, they assumed water would not get high enough to damage their home.

A homeowner’s policy will cover water damage to the home if water comes through the plumbing or the sewer backs up, but not if the water seeps or floods into the house from the outside. Water coming in from outside the house is termed a “flood or rising water” by insurance companies. “Rising water or flood” is excluded from coverage from most all home insurance policies.

If your home is located near a lake shore or low lying creek you need flood insurance. This is called a Special Flood Hazard Area or high-risk area. In fact you may not be able to get a loan on the property unless you get a flood policy. If you have a Federally backed mortgage, your mortgage lender will require you to purchase flood insurance.

Even if your house is located on high ground it may be subject to damage from rising water. Many claims have been denied to homeowners whose house was damaged when rain water seeped in because the house was located on a hillside and water running down the hill came into the house and caused damage. A flood insurance policy would have covered this loss.

Two inches of water from a flash flood coming in to a house can cause nearly $8,000 damage to the average home, according to research conducted by the Federal Emergency Management Agency (FEMA). In fact almost 25% of all flood insurance claims come from areas designated as “minimal flood risk.”

Flood Insurance is affordable

Fortunately flood insurance is affordable. If you home is located in a minimum risk area or low-to-moderate risk area the insurance is very affordable. The rates depend on the location of the property. Flood zones identified by the Federal Government determine the rates of the flood insurance policy. Everyone lives in a flood zone. It’s just a question of whether you live in a low, moderate or high risk area.

Don’t wait! There can be a 30 day delay before the insurance takes effect. When you see the clouds coming, it’s too late to get the protection.

Questions? Give us a call 903-378-7300