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Thursday, June 26, 2008

Flood Insurance in Houston

Think you don't need Flood Insurance if you live in Harris or the surrounding counties? Well, according to, everyone lives in a flood zone. It's just some zones have a history of flooding and some don't. It only takes one flood to put in you in a zone and cause a devastating event to your financial picture. More info from

Anywhere it can rain, it can flood. If you live on a hill or in an area that has never been flooded, you may still be at some level of risk.
Flooding can be caused by heavy rains, melting snow, inadequate drainage systems, failed flood control structures such as levees and dams, as well as tropical storms and hurricanes. It is important to understand the flood risks you face before deciding whether to purchase flood insurance.
Everyone lives in a flood zone. Flood zones indicate areas of low, moderate and high risk. In low- and moderate-risk zones flooding can still occur. The risk is reduced but not removed.
The fact that a flood hasn't occurred in recent years does not mean that one hasn't happened in the past or that one will not happen in the future. But flood history is only one element used in determining flood risk. Determinations are also based on evaluating your community's rainfall and river-flow data, topography, tidal surge, flood control measures, and building development (existing and planned).

Flood Facts:

Floods and flash floods happen in all 50 states.
Everyone lives in a flood zone. (For more information,
visit our Flood Zones FAQs.)
Most homeowners insurance does not cover flood damage.
If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a Federally backed mortgage, your mortgage lender requires you to have flood insurance. (To find your flood risk, fill out the Flood Risk Profile to the left.)
Just an inch of water can cause costly damage to your property.
Flash floods often bring walls of water 10 to 20 feet high.
A car can easily be carried away by just two feet of floodwater.
Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
New land development can increase flood risk, especially if the construction changes natural runoff paths.
Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
If you live in a low-to-moderate risk area and are eligible for the Preferred Risk Policy, your flood insurance premium may be as low as $119 a year, including coverage for your property's contents.
You are eligible to purchase flood insurance as long as your community participates in the National Flood Insurance Program.
Check the Community Status Book to see if your community is already an NFIP partner.
It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
Last year, one-third of all claims paid by the NFIP were for policies in low-risk communities.
The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion.
When your community participates in the Community Rating System (CRS), you can qualify for an insurance premium discount of up to 45%.
Read more about CRS Ratings.
The NFIP awarded over $16 billion in flood claims in 2005.
Since 1978, the NFIP has paid $31.4 billion for flood insurance claims and related costs (as of 3/31/06).
Over 5 million people currently hold flood insurance policies in more than 20,200 communities across the U.S.

Got a question about Flood Insurance? Just ask me!

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