Flood Insurance Provides You Peace of Mind

At almost any time of year, floods can cause tremendous damage for consumers and small businesses. Whether it’s a hurricane, storm surge, severe rainstorms or even runoff from melting ice, flood risk can be a year-round problem for many, especially along the southern coast of Texas – prompting the need to discuss the advisability of flood coverage.

According to the Federal Emergency Management Agency (FEMA)¹, flooding is the most common cause of natural disaster damage in the United States. FEMA estimates that up to 40 percent of small businesses that experience significant damage following a natural disaster won’t be able to reopen. And according to the National Flood Insurance Program², just one inch of water can cause up to $25,000 in damage to homes.

Understanding the Coverage

Premium costs will vary according to the amount of desired coverage, previous flood activity in the area, your property’s age, proximity to a river or lake, and other factors. If your property is located outside a high-risk area, you may be eligible for lower premiums.

According to FEMA, 16% of the coastal city of Corpus Christi lies within the Special Flood Hazard Area (SFHA)This makes Corpus Christi highly susceptible to flooding, especially during extreme weather events such as tropical storms and hurricanes.³

If you rent, your landlord’s flood policy will not cover damages to your personal belongings. It is best to purchase your own flood insurance policy to cover any personal damages.

Evaluating the Risk

One of the challenging aspects of evaluating whether flood insurance would benefit you is that floods are very difficult to predict. Although flood risk is based on location and a history of previous flooding, other factors include rainfall, river flows, and recent landscape changes due to building construction.

Flood insurance policies have a 30-day waiting period, designed to prevent property owners or homeowners from purchasing coverage based on rising waters or forecasts of severe weather.

Remember that with hurricanes, tornadoes, floods, and fire… disasters can happen to anyone at any time. It’s important to have an extensive recovery plan in place. Don’t get caught unprepared!