📋 Tender Overview
Flooding from the Sept. 19 tropical storm resulted in more than 10600 flood insurance claims being filed by Texas homeowners business owners and renters. As of Oct. 29 policyholders have been paid 40 percent of claims or more than 280 million to repair their homes.Flooding is the nations costliest and most common disaster. Fortunately property owners who live in communities participating in the National Flood Insurance Program can purchase affordable protection to insure against flood losses.Why Do I Need Flood InsuranceHere are some important facts to keep in mindPolicies issued by the NFIP pay regardless of whether there is a Presidential Disaster Declaration in place.The average flood insurance claim for Tropical Storm Imelda is over 54000 and does not have to be repaid.Standard homeowners insurance policies do not cover floods. So its wise to consider flood insurance even if you are not required to purchase it.Even if you live outside a high-risk flood zone called a Special Flood Hazard Area its a wise decision to buy flood insurance. In fact statistics show that people who live outside the high-risk areas file more than 25 percent of flood claim nationwide.If it can rain it can flood. Flood zones are areas where there is a higher statistical probability of a flood occurring but that doesnt mean floods dont occur elsewhere. In fact in Texas over the last five years several floods exceeded the statistical probability putting more homes and properties in harms way than were expected.The Federal Emergency Management Agency calculations show that 1 inch of water can cause 25000 worth of damage to your home. 18 inches or more of water could mean repairs to the electrical system and the heating and cooling system. It also means replacing doors appliances and cabinetry.How does flood insurance workIf your community participates in the National Flood Insurance Program NFIP as a homeowner or a business both building and contents coverage can be included in your policy. Renters can get coverage for contents only.Contact your insurance agent to find out if your community participates in the National Flood Insurance Program. Flood insurance from the NFIP is only available in participating communities. Ask your agent if your state and community participate or look it up online in the Community Status Book at www.fema.govnational-flood-insurance-program-community-status-book.In Texas and other states recently impacted by storms and flooding NFIP has streamlined the claims process enabling policyholders to receive advance payments to jump-start their rebuilding. In 2018 policyholders quickly received about 25 percent of their payments as an advance. Advance payments may provideup to 5000 without an adjuster visit or additional documentation orup to 20000 with photosvideo evidence and receipts or a contractors estimate.A Preferred Risk Policy a lower-cost flood insurance policy provides both building and contents coverage for properties in moderate-to-low risk areas. This policy can be purchased for as little as 395 per year.When should I buy a policyAs soon as possible. Theres generally a 30-day waiting period.NFIP cannot pay a claim if you dont have a policy in effect when damage occurs.A new insurance policy from NFIP becomes effective 30 days after you buy it unless the purchase is associated with the origination renewal or extension of a federally backed loan on property in a high-risk area.Even if Im not in a flood hazard area can I purchase flood insuranceYes if your community participates in NFIP. You are eligible to purchase a flood policy with the same coverage you would receive if you lived in a high-risk area.Can I get flood insurance if Im renting a propertyYes. If you are a renter who lives in a community that participates in NFIP you can get flood insurance to cover the contents of your home apartment or business.How much does a policy costYour insurance agent can talk with you about cost of coverage for your property.NFIP policy holders can choose the amount of coverage.The maximum for one-to-four family residential structures is 250000 in building coverage and 100000 in contents coverage.For residential structures of five or more units the maximum is 500000 in building coverage and 100000 in contents coverage.The maximum for businesses is 500000 in building coverage and 500000 in contents coverage.How much will I get from NFIP after my building or contents are damaged by a floodThe amount paid to the policyholder on a homeowners flood insurance policy will cover only the cost of actual damage caused by the flood.The amount paid on contents will cover only actual losses caused by the flood.The amount paid to businesses covered for structure and contents will be only for actual losses caused by the flood. Where can I buy flood insuranceTexas residents can learn how to buy a flood-insurance policy by calling their insurance agent or by calling 800-427-4661 call 711 TTY and other services available and 866-337-4262 for VRS. Information is also available online at floodsmart.gov For flood information and safety tips visit www.ready.govfloods. Find the Spanish-language website at www.listo.gov.
