• Kent Shepard

Flood Insurance For The Texas Homeowner


Did you know that floods are the most common form of natural disaster? Floods cause over $4 billion dollars in damages ever year. Here is another amazing fact; the average homeowner has a 1 in 4 chance of having flood damage during the timeframe of a 30 year mortgage.


If your home is in a flood zone, you must buy flood insurance if you want the government to help you after a flood. If you wait until after the flood, you won’t be able to obtain the insurance.


Many mortgage companies are now requiring flood insurance as part of their loan package. A standard homeowner’s and renter’s insurance policy does not cover flood damage. Flood damage is excluded under standard homeowner’s policies.


Flood Insurance

Flood insurance is only available through the National Flood Insurance Program (NFIP) run by the Federal Emergency Management Agency (FEMA). A few private insurers offer excess flood insurance. In general, a policy does not take effect until 30 days after you purchase flood insurance. So, if the weather forecast announces a flood alert for your area and you go to purchase coverage, it's already too late. You will not be insured if you buy a policy a few days before a flood.


Recent Legislative Changes

In 2012, NFIP proposed reforms that will result in premium increases across the nation. Some properties will be hit harder than others. The Biggert-Waters act severely impacted older properties that will be losing special grandfathered rating. The bipartisan bill that was passed helps with the premium increases in the Biggert-Water act. This is good news for homeowners.


Shepard Insurance Agency understands that your property is a very important part of your life. In fact, the single biggest investment you may ever make is your home. Are you sure you have adequately protected your home and other properties?

Call us today and let us help protect what is important to you.

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