Flood Insurance Humble, TX
According to experts from the Texas Department of State Health Services, flooding is the most common natural disaster in our state.
At Lee Insurance Agency, our residential and commercial insurance specialists receive numerous calls every year from local residents and business owners seeking to learn about the importance of flood insurance policies.
One of the most cost-efficient methods of protecting your real estate investments in Humble, TX, is reliable flood insurance, especially if you live in high-risk areas for flood damage.
How Does Flood Insurance Work & What Does It Cover?
Texas state law does not require mortgage lenders to connect homeowners to a flood insurance provider, even if they live in an area of high flood risk.
Data from the Natural Resources Defense Council reveals that 21 states don’t even have to compel real estate companies to tell homebuyers if their new home lies in a flood-prone area.
Flood disclosure laws are in effect in 29 states, but 27 require sellers to disclose flood-related information to homebuyers only after they make an offer.
Flood insurance is designed to reimburse you for flood damages to your home or place of business. A standard policy covers the structural components of your home, like the walls, roof, floors, and foundation, and appliances like furnaces, plumbing, electrical systems, and air conditioners.
Other valuables flood coverage plans can compensate for:
- Appliances like washing machines, fridges, and electronics
- Installed features like carpets, hardwood, cabinets, and shelves
- Detached garages
- Built-in interior and exterior staircases
What Determines the Cost of Flood Insurance?
The average cost of flood coverage policies with Lee Insurance Agency is about $450/year. Considering the damage your home might sustain from even a light flood, these rates are worth their weight in gold.
According to the National Flood Insurance Program, an inch of flooding can cause over $25,000 in damages. It’s important to note that most home insurance policies do not come with a flood coverage clause, so you must obtain a separate policy to protect yourself from these expenses.
NOTE: It is important to understand that there is a standard 30-day waiting period when purchasing flood insurance policies. This means that your coverage will not actually go into effect until 30 days after you’ve purchased the policy.
Let’s review some of the factors that will determine how much you’ll pay –
Historical Flood Risks
Many property owners believe that their homes or places of business are not at risk of flooding because they’re located far away from a waterway. However, data from FEMA reveals that over 99% of domestic counties report at least one flood between 1996 and 2019.
You can check the Harris County Flood Education Mapping Tool to find out if your home is in a high-risk area. The riskier you are to insure, the higher premiums you have to pay.
The Age and Structural Condition of Your Home
Old homes require more money to repair and remodel. Your insurance company might have to source custom-milled steel and lumber parts to restore them to their original condition. Whereas modern structures have more efficient flood control fixtures and drainages.
Flood Coverage Type
- Content coverage: Reimburses you for structural harm and damage to personal property
- Building coverage: Only covers the elements that make up your house
Although building coverage alone costs less and may seem enticing, it may leave you financially vulnerable if a flood damages everything inside your home. Luckily, you can have a custom policy written which combines both content and building coverage for maximum protection.
Deductibles and Limits
Higher flood coverages mean higher premiums. However, if you pay a larger deductible, you could enjoy lower premiums.
Buildings in certain flood zones can qualify for a government-backed Preferred Risk Policy. The PRP offers lower coverage costs for tenants and owners.
Benefits of Custom Insurance Coverage
Historically, the National Flood Insurance Program was the only agency in the United States to offer flood insurance, and if you didn’t live in pre-selected zones, you wouldn’t qualify. Today, many private companies offer flood insurance policies with no backing from taxpayers.
Private insurance providers have more flexibility as they can offer lower premiums and deductibles for residents and business owners in low-flood-risk areas. Unlike the NFIP, private companies don’t follow a rigid set of rules, and they can adjust their prices dynamically, with less red tape. Many Texans also love that they will not use taxpayer money to insure their private possessions.
Private insurance companies can cover a wider variety of possessions and generally offer higher coverage limits than their government counterparts.
The NFIP offers a maximum of $100,000 in content coverage and $250,000 in structural coverage. Residents with properties and estates over $300,000 usually gravitate toward private providers, which can offer reimbursement for damaged personal belongings. The NFIP groups these possessions into one category, offering a mere $2,500 in coverage.
According to a study from Milliman, 92% of insurance providers in Texas offer more cost-efficient flood insurance policies for residents in single-family homes than the NFIP.
Lee Insurance Agency: Get the Coverage You Need Now
Lee Insurance Agency has been the number one provider of flood insurance policies in Humble, Texas, and its surrounding areas for over 70 years. Our specialists have been helping people keep their peace of mind through countless hurricanes, rainstorms, and a broad range of other natural disasters.
Our flood insurance policies can cover:
- Luxury clothing and jewelry
- Electronics and appliances
- HVAC systems and air conditioning units
- Collector’s items
- Post-flood cleanup and debris removal costs
- Structural elements of your home
- And many more
Contact our five-star customer service team today at (281) 812-8400, and we’ll give you a free quote after a short consultation.