What kind of insurance do you need?

Flood Insurance

In Central Texas, we do get some darn big storms. Some houses are in an area that is likely to flood and require flood insurance for a home loan. In 2015 and Spring 2016, many families in Central Texas discovered that flood damage can happen just about anywhere.

Obtain a quote from our agents that understand the flood risks in our area. Our first step is to request a “Flood Risk Determination” for your property. This checks your address to see if your home or business building is in the known flood risk area (“AE zone”) or not (“X zone”). For homes beyond the 100-year floodplain (“X zone”), you are normally eligible for a preferred rate flood insurance plan at a modest cost. If you home is in the 100-year floodplain (“AE zone”), it is going to be more expensive but flood insurance protection is available. Click her for a free quote.

Mansfield Dam Colorado River

Mansfield Dam June 2016
Three Floodgates are open due to flooding.

A Quick Overview of Flood Insurance

Flood Insurance protects your house & possessions from loss by rising water from the outside. Homeowner’s and other property insurance specifically excludes this peril.

In Central Texas, there are two possibilities:

  1. Likely to get flooded again (AE). This is areas near creeks or rivers that have a 1% or better chance of getting inundated each year. This area is labelled AE flood zone and is also know as the 100-year floodplain. If your house or building is in these area, you will be required to have flood insurance to get a loan and darn smart to be insured for flooding in any case.
  2. Not flooded yet (X). This is anywhere beyond the known flood risk areas and is labelled as the X flood zone. You won’t be required to have flood insurance for a home loan but you still could get flooded if we have a really big rainstorm.

Flood insurance is a government program but is sold by the insurance companies. You are stuck with what same rules, policy and rates regardless of which insurer you buy it from. The standard flood insurance policy can have home dwelling coverage up to $250,000. Buying protection for your contents is an option. There is no coverage for your loss of use after being dislocated due to flood damage which is a major flaw in the government plan.

Flood insurance is also available for rental houses, business buildings and for tenants (contents only).

Here’s some links to find out more about flood insurance:

Understanding Flood Insurance – Our much more detailed discussion of flood insurance. It also includes a list of recent flooding events in the Austin area.

City of Austin’s Watershed Department resources at http://www.austintexas.gov/department/watershed-protection

FEMA / National Flood Insurance Link for more information: FloodSmart.gov