Preferred Rates of Flood Insurance
When consider many types of insurance people should to apply for, beside life insurance, auto insurance, health insurance and even travel insurance that is important for people often go around the world, flood insurance is also one type that is necessary to look for, particularly when their homes are located on the risk area. However, if your home is built up on the area that far away from the sea, lake or river, do not think that your expensive property is safe and sound. Imagine to natural disaster like a hurricane, perhaps this let you to think about flood insurance again.
For people live in Houston, there are main categories for flooding risk that Houston residents should insure for.
Flood damage that occurs due to plumbing problems is the first category to talk to. There are two main causes of flood damage caused by plumbing problem; first is the leak or bursting of water pipes, and the other one is an overflow such as air conditioning drain pans. While some of home owner who hold flood insurance policy ask their insurance company to add this type of damage in their flood policy, others never realized the importance of doing this. If you recognized that plumbing problem can cause flood and then damage your house, what you should do is checking your policy or asking your agent about your coverage to make sure your home is covered in this case.
The next type of flooding damage is driven rain that gets in after windstorm. This is usually covered on homeowner’s policies, but this coverage is excluded in some areas. So, you will need to a separate windstorm policy with the driven rain option for this if your home is located in the area where flood damage caused by windstorm is not included in your flood policy.
The third is flood damage caused by rising water because Houston has suffered flooding frequently in the past. The way to get flood insurance in least expensive is dealing with the National Flood Insurance Program (NFIP). The government allows you to get coverage for just contents, or the home and contents and this insurance also available for businesses.
Flood insurance rates offered by NFIP mostly depend on what flood zone you are in, how much coverage you want, and what deductable you choose. B or X zones are the area of least risk where usually qualify for the “preferred” rate with a $500 deductable.
These are some examples of preferred rates
Contents only: - $8,000 for $58 per year
- $20,000 for $113 per year
- $40,000 for $147 per year
- $100,000 for $221 per year
Home plus contents: - $20,000 home plus $8,000 contents for $119 per year
- $30,000 home plus $12,000 contents for $149 per year
- $50,000 home plus $20,000 contents for $196 per year
- $100,000 home plus $40,000 contents for $257 per year
- $200,000 home plus $80,000 contents for $326 per year
In addition, preferred rate will usually based on policy of each insurance company too.
Related Posts
- Finding the Right Flood Insurance
- National Flood Insurance Program in USA
- Do You Need To Have Flood Insurance?
- Some Basic Tips When Applying For Flood Insurance
- Keeping Your Home Away From the Rising Risk of Floods