The Best Private Flood Insurance in Texas

Texas is becoming a hotbed of low-pressure systems' victims and as we approach the hurricane season, we want to make sure that we're protected from all the impacts that these spring storms and heavy rainfall can bring us.

One of the best ways to protect yourself is to get the best flood insurance you can get in the market, so today, let's unpack the things you need to look for when buying your flood insurance from the private carriers in Texas.

Now, a disclaimer first, we won't be picking out carriers and naming them here since we really don't want you to get that tunnel vision and instead have this serve as a guide for your flood insurance purchase.

The Triple W's of Flood Insurance

Write-Your-Own

First thing's first, you want to make sure that you have the ability to write your own (WYO) policy. This doesn't mean that you'll be the one calculating and accounting for all the numbers for your flood insurance. This generally means that we want to make sure that you have an option for the amount of coverage you're going to get.

You see, when we look at federal flood insurance for a second, the Federal Emergency Management Agency (FEMA) and the National Flood Insurance Program (NFIP) don't really give you an option to write the exact amount of coverage you need for your property since they max out at a certain amount. This is something you also want to look out for when buying through a private carrier.

Picture this, let's say that the total market value of your house is at $400,000 and you're only getting $250,000 maximum coverage for the building. When a flood hits, you're going to either pay out of your own pocket the difference or swallow the fact that you basically downgraded your home.

Being able to write your own policy also gives you the option to choose where you want to allot most of your coverage to. Try to look for carriers that will allow you to go for building coverage that maxes out to $1,000,000 (if not no coverage limits at all) and no standardized coverage amount for contents. You can do a million on building coverage and since you don't need that much coverage for the personal items you have inside it, you can do $10,000.

Another thing you want to look for when it comes to buying flood insurance from the private market is if the carrier will give you an option on the deductible. Now, it's important to note that flood insurance is paid upfront and this means that the deductible will also be paid as soon as you give the green light on that policy offer. Having the option to go for a lower or higher deductible can help you manage better your premium rates.

This can give you a lot of room to lower your rates and be able to really pay a fair amount for the right coverages.

Waiting Period

We get a lot of policyholders complaining that they still have to wait 15 days before their policy can take effect on their property — something that they didn't expect from a private carrier.

When it comes to the waiting period, it's important to keep in mind that buying your flood insurance also requires that you time it perfectly. You want to make sure that a policy is active on your home because flooding can happen anytime especially in Texas where flash flooding seems to be ever-present. Reach out to your insurance agent and discuss which carrier can provide you a policy that can take effect up to 48 hours maximum from the time you paid it.

We do this for our customers across the country where we help them pick the best, cheapest, and fastest flood insurance policy and carrier for their home.

Having that waiting period kick you when you least expect it can make or break you when it comes to insuring your property which is why you want to get that carrier who can get you a policy that fits your timeline. This is also something that you want to have in your write-your-own power. You want to have the choice of when your policy actually takes effect instead of having to wait for that 30-day period to end.

We actually have carriers that are more than happy to close that flood insurance purchase on your time and can also give you an ample amount of time to decide.

Watch Out!

Lastly, we want to talk about what you really need to look out for when it comes to the private market. Since we're talking about private companies and private carriers which aren't bound by the federal government's orders. You see, unlike the FEMA and the NFIP, private flood insurance companies don't need to take all the risks. This means they can choose to not write a flood policy because a property has too high of a risk for flooding.

We've seen this happen in recent floodings in Texas where private flood insurance carriers moved away from areas like Houston, Austin, Fort Worth, and Dallas due to the recent flooding that happened. There are also some cases where these carriers don't move out of the area but will be in moratoriums for the duration of the flood and even sometime after that.

This can really hurt your options and might take away your time from carriers who can provide you flood insurance during flood seasons. So, talk to your flood insurance agent to avoid this kind of risk early on. This way, you can also get an idea of which carriers may not be the best one to go for in the long run especially for Texas that has an on-and-off relationship with private flood insurance.

Flooding had become one of the biggest problems that we're facing in recent years and it just might get worse in the coming years as climate change continuously impacts the situation of our planet.

If you have questions on getting into the private market, how private flood insurance works, or anything about a flood, reach out to us.

Remember, we have an educational background in flood mitigation and we want to help protect the value of your property long term. Click the links below to call us, get help in creating a quote, and watch our daily flood education videos on our YouTube channel.