When do you need to purchase flood insurance?

I’m in a zone designated as a non-flood. I don’t need flood insurance.

While it is true that you are required, by your mortgage company, to have flood insurance when you are in a FEMA designated flood zone, I always recommend buying flood insurance even if you are not in a flood insurance zone.

History has taught me that the flood zone is no determination of whether an area will flood. I saw it with Hurricane Katrina in New Orleans back in 2005, when areas like Covington which are located North of the City of New Orleans, flooded due to Storm Surge.  These were non-flood zones.

Then again after Hurricane Harvey, here in Houston in 2017, where many neighborhoods in Katy flooded. These too were non-flood zones.

How expensive are flood policies?

The premium you pay on flood insurance policies depend on two different factors:

1. What flood zone does your home fall under?
2. What amount of coverage do you want/need?

Once you know whether your home falls on a flood zone (you can ask your agent and they can run a flood determination report to find out what zone your home falls on), you will know how to proceed.

1. If you are in a flood zone, and your home was built after to 1974, you will need an elevation certificate to even be able to quote it.  The elevation certificate will provide the Base Flood Elevation and your home’s Top of bottom floor. This information along with other details will be needed to calculate the premium. 

If your home was built before 1974, you will most probably be able to get a quote without an elevation certificate, however, if the home sits high up, getting an elevation certificate might still be advisable (talk to you agent about the benefits of getting an elevation certificate). Also, if you are in a flood zone, and you are financing the home, you will be required to get flood insurance by the mortgage company.

• If you are in a non-flood zone, even if you are financing your home, your mortgage company will not require you to have flood insurance.  Now, that doesn’t mean you won’t need it.  Like I stated before, if the past has taught me anything is that a flood zone is no determination of whether an area will flood.  With that said, a flood insurance policy in non-flood zones is inexpensive. They range from $200-$536 annually based on the amount of coverage.

How fast can I get a flood policy?

If I buy a flood policy today, will I be covered today?

All flood insurance policies have a 30-day waiting period.  The only exemption to that is for loan closings. If you are purchasing a home, if you purchase the flood insurance before the closing date, you will not have to wait the 30 days before coverage becomes effective.

Flood insurance, since they are provided through the National Flood Insurance Program is required to be paid in full.  No monthly payment plan offered.

What happens if I don’t have any flood insurance and my home floods?

If you don’t have any flood insurance, and you were in a non-flood zone, you will most likely have to end up getting a loan from FEMA to have your damages repaired.

If you flooded and are in a flood zone and your house is mortgaged, you might need to speak to your mortgage company to see if there any available coverage to you.

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Katleen Huybrechts Muñiz  

Insurance Agent

Maximum Insurance Solutions Group

Katy, Texas