Why You Need a Separate Flood Insurance Policy

Last October, Texas received a torrential downpour of rain that brought more than a foot of rain in some areas, causing severe flooding and the collapse of a Kingsland bridge. Floods are one of the most common natural disasters that the nation has to deal with, and floods are notoriously not covered by a standard home insurance policy. A homeowners or renters policy typically covers water that comes from the sky, not along the ground. That’s where a flood insurance policy comes into play.

With the uncertainty that the weather brings in the midst of a changing climate, having private flood insurance will be the key to complete protection. And if you’re in an area prone to flooding, that means it’s that much more important to have a backup plan to protect your home and everything in it. Maybe you don’t think you need a separate policy but in reality, you do. This is why a separate flood insurance policy comes in handy, courtesy of CNBC.

Why You Need Flood Insurance

The recent floods that devastated California wildfire areas are just another reason why it’s so imperative to purchase flood insurance for your home. Flood damage is typically covered underneath a National Flood Insurance Program policy, if the owner has one. However, most people don’t. Only 12 percent of homeowners have a flood insurance policy. And it doesn’t even take a lot of water to do significant damage. FEMA estimates that just an inch of water in your home can amount to $26,807 in structural and possession losses for a one-story property of 2,500 square feet. And while there are resources available through FEMA, the typical grant payout for homeowners during Superstorm Sandy was $8,016; during Hurricane Katrina, $7,114. That’s hardly anything when it comes to the amount that you’re losing. That’s why having private flood insurance is a necessity.

What Else to Know About Flood Insurance

If you don’t purchase flood insurance through NFIP, you can also go through a private insurer. With Transparity Insurance Services, you have access to alternative flood insurance markets. If you have a high-value home and need excess flood insurance, then we have it covered through our program. An excess flood policy can help with living expenses while waiting for your home to be repaired or rebuilt.

As a final note, it’s important to remember that most flood insurance policies in Texas have a 30-day waiting period before the policy kicks in, and policies need to be renewed every year. That means you can’t get insurance before a big storm. Don’t wait until the last minute to get your home the dire coverage it needs. When you’re ready to discuss private flood insurance, Transparity is ready to help you.

About Transparity Insurance Services

Transparity Insurance Services was founded for the purpose of helping clients to ensure their property and assets with no hassle. We are committed to providing a simple, easy, efficient, and positive experience to all of our clients, and prioritize open and transparent communication with our clients. Through our excellent customer service and technology, we can help you to find the right insurance program at a competitive price. Contact us today at (855) 889-2037 to learn more about what we can do for you.