My Post (17)

Have you ever been in a deli line and seen the options for cheese. Why would someone pick the cheese that has holes in it?

Well this is what I was thinking when I was standing in the Madison Georgia Walmart a few weeks ago.

You are getting less cheese for the same amount of money and sometimes more money.

The same can be said for flood insurance policies in Madison Georgia and other areas.

Everyday we see flood insurance policies that look like a piece of swiss cheese. This policies have all kinds of holes in them.

Some have more exclusions than they have inclusions.

Some mirror the National Flood Insurance Program and some don't.

So what can you do to make sure your flood insurance policy in Madison Georgia  does not look like a piece of swiss cheese?

The first thing you want to do is work with an insurance agent that has experience with private flood insurance and the National Flood Insurance Program.

Ask the following questions

  1. Have you ever handled flood insurance claims?
  2. Do you recommend replacement cost or actual cash value.
  3. What is covered below grade?
  4. Have you ever had someone use additional living expenses?

These are some of the major areas where we see people having gaps in coverage when it comes to flood insurance.

Understanding how loss settlement on claims is handled will help you understand what might actually come out of your pocket.

 

Replacement cost and actual cash value is another area where we see major gaps in coverage.

 

Imagine your home has 4 feet of water in and the house ends up being a total loss.

The cost to rebuild your home is $200,000 but the claim check you get is $125,000. That is the kind of scenario an actual cash value policy could cause you to be in.

Something else that most people don't think to ask about is coverage below grade. In many situations there is no coverage for contents if they are below grade. In fact its a major question on most private flood insurance applications.

 

The last thing we want to look at is additional living expenses. This is something that is not offered on flood insurance policies through the National Flood Insurance Program.

 

As a result many times people do not ask about it when looking at a private flood insurance option.

I remember us setting up a customer with a private flood insurance policy in Nebraska.

This was the first time the customer had heard about additional living expenses being available. It's a good thing we included it because she was the only one on her street that had that coverage when a flood occurred along the Missouri river 6 months later.

So if you have further questions about making sure you don't have Swiss cheese gaps in your flood insurance policy then click here.

Want to learn more about flood insurance?

Then make sure to check out our YouTube channel and podcast below.

Remember we have an educational background in flood mitigation. That means we can help you understand your flood risks, flood insurance, and mitigating your property long term.

 

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com

 

If I had a dime for every time I was asked the question how much flood insurance cost in San Antonio Texas I might just own a private island.

It's a valid question of course you want to know how much flood insurance is going to cost on your San Antonio Texas property.

The problem is that there is no simple answer. There are many things that can impact the cost of flood insurance in San Antonio Texas. Two things we want to look at are

  1. Location
  2. Elevation

Location is a driving factor of flood insurance cost in San Antonio. Whether you are located in a special flood hazard area or not can be a big price difference.

If you are lucky enough to be in the minimal risk zone also called flood zone x then you may have access to preferred rates.

So what is a flood zone x in San Antonio Texas?

 

As mentioned above this is an area that FEMA has determined to be in a minimal risk area. This means that the chance of flooding should be lower than the special flood hazard area. However the recent study by the first street foundation shows us that the risk for flooding is still there. San Antonio is in their top 20 list of cities with the greatest number of properties at substantial risk for flooding.

If you live in Texas then you know minimal risk doesn't mean no risk. Just look at hill country areas like Wimberly Texas and the flooding they have been through the last 5 years.

 

So what about the second factor elevation?

Elevation can play a major role in flood insurance cost in San Antonio. Something we want to pay attention to is base flood elevation.

So what is base flood elevation in San Antonio Texas?

 

According to FEMA base flood elevation is the elevation of surface water resulting from a flood that has a 1% chance of equaling or exceeding the level in any given year.

So the further you are below the base flood elevation the higher your rates through the National Flood Insurance Program could be. The further above the base flood elevation the lower your cost could be.

Are all flood insurance rates based on this? These are some of the factors that the National Flood Insurance Program uses for their rates.

Private flood insurance carriers may use these factors combined with other factors. In fact some private carriers even look at 20 year flood plains.

What are 20 year flood plains?

 

In many situations private flood insurance could be half the cost of the National Flood Insurance Program in San Antonio Texas.

Its also important to know that your loan type could determine if you qualify for private flood insurance.

 

Many government backed loans require property owners to purchase flood insurance through the National Flood Insurance Program.

Past claims could also determine if you qualify.

If you want to see if you qualify for private flood insurance then click here.

So as we mentioned at the beginning determining flood insurance cost in San Antonio Texas can be a complex answer.

The good news is we have an educational background in flood mitigation so we are here to help you understand the answer, understand your flood risks, and flood insurance.

If you want to learn more about flood insurance, flood education, and flood zone changes you can check out our YouTube channel where we do daily flood education videos. You can also checkout our podcast.

 

Contact Us

 

Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com

 

Over the past month I have done a lot of traveling shooting flood education content. On those travels I have been in places that have been hit hard by flooding over the last few years. I traveled to Houston, Galveston, and Wimberly Texas. These areas have all see major flood damage over the last few years.

These areas also house many secondary and vacation homes for property owners. Some of these properties have seen minor flooding and some have seen major flooding. Many of these areas have seen loss of life as a result of flooding.

Blanco River flooding Wimberly Texas

As Tropical storm Beta approaches these areas and is expected to drop large amounts of rainfall and storm surge we want to look at what you can expect when it comes to your Texas flood insurance policy.

Through out these two areas in Texas people have two different types of flood insurance. They have the National Flood Insurance Program and they have private flood insurance. These two programs can be pretty different when it comes to coverages. Most people jump to the private flood insurance market when they can because it's cheaper and you can get better coverage. I think many people through our Port Aransas, Houston, and Galveston will tell you to read your policy.

galveston Texas coast

We mentioned earlier many of these properties are secondary or seasonal properties. What you may not know is many private flood insurance companies default to an actual cash value basis on these policies.

So what exactly does that mean for your Texas property?

Well it means you won't generally get the full amount on your policy. If you have a $250,000 flood policy you may only get $125,000. That could be a big surprise couldn't it. Thats exactly what happened to a lady in Houston after hurricane Harvey hit. She had a $150,000 flood policy that only paid out $15,000.

So you ask why?

Well she did not insure to 80% of replacement cost or the $250,000 max that the National Flood Insurance Program offers so her policy defaulted to actual cash value.

Thats a big shocker. So when you are setting up this flood insurance policy or if you ever change your flood insurance policy in Texas you want to have your insurance agent highlight these areas of the policy. When switching private flood insurance carriers make sure you are truly getting replacement cost on your policy up to the amount you have listed on the policy.

Maybe you don't have an agent that has done this or you don't have an agent at all?

Then click here and we will be glad to do a review with you.

While there are multiple options for flood insurance in Texas you want to make sure you are getting the policy that is right for you.

So if you live in Texas and want to learn more about your flood insurance options then make sure to check out our daily flood education videos on our YouTube channel. You can also checkout our podcast for this video here.

 

Remember we have an educational background in flood mitigation. This means we can help you understand your flood risks, flood insurance, and mitigating your property to help you minimize flood losses and flood premiums.

 

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Chris Greene

Author

Chris Greene

President of The Flood Insurance Guru
M.S. in Emergency Management with a focus in Flood Mitigation
flood@communityfirstagency.com