If a Storm Hits, Do You Have Coverage?

Real Estate Podcast with Patrick Fitzgerald

The terrible situations that have unfolded in Texas, Florida, and elsewhere are still fresh in our minds, and for good reason. People have been flooded out of their homes, and it has been absolutely heartbreaking to watch. So today, I wanted to talk about what flood insurance is and why it can be helpful in situations like these. The most important thing I want you to know is that homeowners insurance does not cover rising water. If water happens to come in from the roof, it will be covered under homeowners insurance. If it comes from beneath and rises into your home, however, it is simply not covered. Of the approximately 185,000 homes that were flooded in Houston, 80% of them did not have flood insurance. Flood insurance is its own separate policy, meaning that you will need to call and request this specific type of coverage. “Don’t wait until you see the hurricane coming before you think about your coverage.” It’s important to be aware that flooding can still occur in non-flood zones. If you do happen to live in a non-flood zone, the government caps the price of coverage at $410. Here’s something else you need to know: Because flood insurance is a separate policy, it covers just $250,000 on the dwelling regardless of the value of the home. There is also an additional $100,000 worth of coverage for the contents of your home, such as furniture and other personal effects. Keep in mind that both of these figures are the maximum amount of coverage provided and may not always be what is given in the event of a flood. You should also realize that flood insurance does not go into effect for 30 days after purchase. For this reason, you don’t want to wait until you see the hurricane coming before you think about your coverage. For $30 or so a month, I find the coverage to be well worth it. After everything that happened, I’ve definitely purchased flood insurance, myself. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.