You don't have to reside in a high-risk flood zone to be affected by a flood. Floods and flash floods can occur anywhere. Even just an inch of water can cause damage to your property. In fact, in the U.S., flood-related losses cost people more than a billion dollars a year.
In Dallas, the flooding problem is particularly severe along the banks of the Trinity River. Although the city has made many recent improvements to reduce the problem of surging waters and flood-related damages, the risk still exists.
What is Flood Insurance?
Flood insurance falls under the property insurance category and helps reimburse policyholders from damages accumulated from a flood. Flood insurance protects your direct physical losses, structural damage, and belongs resulting from a flood.
Does Renters, Homeowners, or Car Insurance Cover Flood Damage?
Renters, homeowners, or car insurance does not cover damage to personal belongings or property from flooding. Only a flood insurance policy will cover losses from floods. Renters insurance may help out with mild storm damage or water damage. However, it will not cover expenses from floods.
Is Flood Insurance Required? When Is It Required?
You may be required to have flood insurance. Congress has mandated federally regulated or insured lenders to require flood insurance on mortgaged properties located in areas at high risk of flooding. But even if your property is not in a high-risk flood area, your mortgage lender may still require you to have flood insurance.
What Does Flood Insurance Cover?
Flood insurance covers losses and damage from floods. Excessive water on your land can do severe damage to your property. Flood insurance provides two types of coverage:
For the structure of the home itself
For its contents
Structural flood insurance protects the building and basic coverage, including:
Foundation walls and staircases
Fuel tanks and plumbing systems
Furnaces and water heaters
Kitchen appliances like stoves or dishwashers
Flood Insurance for the contents of your home protects:
Washer and dryer
Valuable items, such as artwork.
You can opt to buy only one type of coverage, though most homeowners purchase both.
Most flood insurance is written through the National Flood Insurance Program (NFIP), administered by the Federal Emergency Management Agency (FEMA).
How Much is Flood Insurance in Texas?
The cost of NFIP-provided flood insurance in Texas is standard, and rates are based on how much coverage you purchase and whether you are in a high-risk flood zone. Preferred-risk policies start at just $130 a year, and the average policy runs about $600 a year.
Do I Need Flood Insurance?
There are many reasons to invest in flood insurance. As with any insurance policy, the main reason to get flood insurance is to protect yourself from a natural disaster. Without coverage, you will have to take full responsibility for the effects of flood damage to your property and possessions.
To better assess whether flood insurance is the right investment for you, let’s review the facts:
Floods are the nation’s most common and costly natural disaster and cause millions of dollars in damage every year.
Homeowners and renters insurance does not typically cover flood damage.
Floods can happen anywhere--More than 20 percent of flood claims come from properties outside the high-risk flood zone.
Flood insurance can pay regardless of whether or not there is a Presidential Disaster Declaration.
Most federal disaster assistance comes in the form of low-interest disaster loans from the U.S. Small Business Administration (SBA), and you have to pay them back. FEMA offers disaster grants that don't need to be paid back, but this amount is often much less than required. A claim against your flood insurance policy could and often provide more funds for recovery than those you could qualify for from FEMA or the SBA--and you don't have to pay it back.
Floods can do unparalleled damage to your home and property. Whether you are required to have flood insurance or not, it’s always a wise investment.
How To Get Flood Insurance Get a Flood Insurance Quote & Protect Your Investment
If you have questions regarding flood insurance or want to purchase a policy, contact the Thumann Agency for help. Our agents, many of whom live right here in Dallas, will help you understand your existing coverage, find alternative or additional, and provide you with a variety of Dallas flood insurance quotes. A flood insurance policy will usually take 30 days from the date of purchase to go into effect. So don't wait until a flood is expected to buy a policy.