Flood Insurance For First Time Home Buyers

Mar 5

Written By Diana

Hello again and welcome to Houston First Time Home Buyers Edition. Yes. It's always best to be prepared. It is said that Texas experience more flooding than any other state. Notable events include Hurricane Harvey in 2017, Tropical Storm Imelda in 2019, and Tropical Storm Beta in 2020. In addition to about four to five days of flooding each year, according to Harris County Flood Control District, a major flood occurs somewhere in Harris County about every two years. Hence, the importance of flood insurance. Here is some important flood information to know before speaking with your insurance provider or the National Flood Insurance Program (NFIP)

Texas does not legally require homeowners to have flood insurance.
However, you will be required to get flood insurance if you plan on getting a mortgage for a home in a 100-year floodplain. it is a requirement of all federally backed mortgages, and some private lenders as well.
According to FEMA, Over 40% of flood insurance claims come from areas outside the 100-year floodplain.
Floods are one of the most common natural disasters.
The two primary options for obtaining flood insurance include the National Flood Insurance Program (NFIP) and private flood insurance.
Flood insurance in Texas typically ranges between $550-$1,200 per year.
Monthly cost usually falls between $46 -$100 a month.
The average flood insurance premium in Texas is right at $783/year ($65.25/month) While the national average rate is $1,064 per year, through NFIP.
Flood insurance cost will depend on flood zone, year home was build, the foundation type, location, condition, elevation certificate, coverage limits and if you choose NFIP or private market.
Homeowners insurance and flood insurance are not the same.
Most homeowner's insurance policies do not cover flooding.
Just one inch of water can cause roughly $25,000 of damage to your property.
Most flood insurance policies have a 30-day waiting period before coverage goes into effect.
Government-managed NFIP policies offer coverage up to a maximum of $250,000 to repair or rebuild the physical structure. NFIP provides an additional $100,000 in personal property coverage.
NFIP premiums are calculated based the property's height above base flood elevation (BFE), the frequency and type of flooding, and the home's distance from the nearest body of water. Prior claims and the structure's replacement cost value (RCV) are also considerations in calculating NFIP rates.
Texas homeowners needing more than $250,000 in total home coverage, should speak with a private flood insurance provider.
Private flood insurance is sometimes available as an endorsement to an existing homeowner's policy or as an add-on to NFIP coverage.
Always shop and compare private flood insurance pricing options.

For more information, you can also find a flood insurance agent online or by contacting the FEMA Mapping and Insurance eXchange (FMIX) Customer Care Center. For additional assistance, chat live with a specialist from 9 a.m. to 5 p.m. ET Monday-Friday, email FEMA-FMIX@fema.dhs.gov or call 877-336-2627.

Fun fact: Did you know when the Allen brothers founded Houston in 1836, they established the town at the confluence of Buffalo and White Oak bayous. Shortly thereafter, every structure flooded. Additionally, early settlers documented that after heavy rains, their wagon trips west through the prairie involved days of walking through knee-deep water.

As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana

Image: Harris County Flood Control District

Source: Harris County Flood Control District

Source: LendingTree Flood Insurance Texas

Source: FEMA