Severe weather conditions can occur anytime and anywhere. If you live in Texas, you are already familiar with the extensive damage flooding has caused in recent times. Floods happen when the amount of rainfall is more than what the drains can carry away or the ground is able to absorb. Flash floods typically occur when there is excessively heavy rainfall in a short timeframe.
In July of 2020, South Texas grappled with power outages as the strong winds and flooding caused by Hurricane Hanna resulted in extensive damage. In September, tropical storm Beta made landfall with torrential downpour with over a foot of rain in many parts. These storms and hurricanes can cause rivers to overflow, with the outcome being serious flash flooding of streets.
High water impacted 37 different locations while stranded vehicles dotted flooded freeways. If you are living or working near streams, creeks or culverts or in a low-lying area, the risk of flooding is particularly high.
Why Do You Need Flood Insurance?
Hurricane Harvey damaged over 300,000 structures in Texas, while the damages amounted to $125 billion. As per FEMA, 80 percent of homes that were flooded did not have flood insurance.
From homes going into foreclosure to business losses related to repairing damaged structures, flooding can have an extensive impact.
Flash floods have not only flooded basements but have soaked furniture while damaging walls, carpets and other equipment. Without flood insurance, home and business owners have to dig into their savings to repair and replace the damages.
Is Flood Insurance Worth The Cost?
The extent of damage caused by floods varies based on many factors such as location, severity of floods and so on. An inch of water, according to FEMA, can cause damage worth $25,000.
Depending on the flood risk factor in your area, the cost of flood insurance can vary. The average annual flood insurance cost through NFIP (National Flood Insurance Program) is $634.
With just a few hundred dollars a year, you can protect your valuable belongings and business equipment that are worth thousands of dollars while avoiding disasters such as foreclosure. It is important to remember that the renters and homeowners insurance policies do not cover floods.
The worst thing about floods is that they can occur even in low-risk areas and at any time of the year. While Small Business Administration and FEMA provide disaster grants, they often are not adequate. With a flood insurance claim, you can get the funds you require for full recovery while there is no need for paying this back.