What Is Flood Insurance And What Does It Cover?
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Flood insurance is sold separately from homeowners insurance. It protects you only from losses caused by flooding. Flood losses include prolonged rains, levee failures, and (most importantly in the wave of Ike) storm surge. In Galveston and on the Bolivar Peninsula, it is expected that most homeowner insurers will argue that the losses were caused by storm surge rather than wind, and will attempt to shift all responsibility to flood insurers.
Flood insurance is government regulated and managed by the National Flood Insurance Program, or NFIP, which is part of FEMA. So while Flood insurance is sold by private insurers, it is backed by the federal government.
Flood policies come in set packages of coverage. Residential coverage ranges up to $250,000 for the home and $100,000 for the contents. Commercial policies can cover up to $500,000 for the building and another $500,000 for contents. Residents in a high risk area, such as a flood plain, would have purchased a standard policy, and in fact most mortgage lenders require these policies before approving loans on property in a flood plain or other high risk area. For residents outside of a high risk area, preferred risk policies are available at a lower cost. There are some specific requirements for making a flood claim.
If it is taking too long to get your insurance claims resolved and get your hurricane damaged fixed, call Doyle Raizner LLP and speak to a hurricane lawyer at 713-571-1146.
