The state of Texas is prone to flooding, and flood water can cause extensive problems for your property. It doesn’t matter whether it’s a small influx of water or a full-scale natural disaster, as Lone Star Legal Aid estimates that just 1 inch of water can cause up to $25,000 worth of damage.
From damage to structural elements and plumbing systems, to causing health issues and mold and mildew growth, the after-effects of flooding aren’t easy to rectify yourself – you’ll need the assistance of a flood restoration specialist.
Unfortunately, while your homeowners’ insurance may cover a leaky roof, most policies don’t cover flood restoration, leaving you high and dry (or wet in this case) in the face of disaster. That’s where flood insurance comes in. Let’s look at what flood insurance covers, and whether you should have it.
Note that this blog post is written as general guidance, any specifics will differ between insurance providers and policies.
Does flood insurance cover mold remediation?
Whether a flood insurance policy covers mold remediation will depend on the provider and the level of policy protection you choose to take out. If mold remediation is covered under your policy, the mold must have originated from a flood to be valid. This also often comes with a caveat that you, as the policyholder, must take action to mitigate damage quickly, such as drying out the property as best you can and hiring professionals to assist if the problem is extensive.
If the insurer can argue that the mold damage is due to neglect or a delay in addressing the flood damage, it may not be covered. Therefore, it’s important to make sure you understand all of your responsibilities set out by the policy to ensure you receive compensation. Most insurers are more lenient on this rule if you are physically unable to address the issue sooner, such as being away from the property due to a mandatory evacuation order.
Does flood insurance cover foundation damage?
The majority of flood insurance policies will cover foundation damage, but usually, there will be a coverage limit, depending on the insurer and strength of the policy. For example, there may be a monetary cap on structural repairs, which covers all structural aspects that get damaged, not just the foundations.
Again, this will only be covered if the damage was caused by flooding, and there were no other factors that also contributed to the damage, such as pre-existing foundation issues, poor construction, or earth movement (like a landslide). Gradual water seepage that contributes to foundation damage is also generally excluded unless directly caused by the flood.
Is flood insurance expensive?
Like any insurance policy, flood insurance costs will vary depending on a few key factors:
- Your location and how high risk the area is for flooding
- The elevation of your property, relative to the Base Flood Elevation (BFE)
- The level of protection you wish to have (coverage limit)
- Your deductible (the amount you are required to pay in order to claim on the policy)
- The type of structure (rates differ for single-family homes, multi-family buildings, and non-residential properties).
There are two main types of flood insurance: the National Flood Insurance Program (NFIP), and private flood insurance.
The average cost of an NFIP policy in Texas is around $700 to $800 per year, but premiums can range lower or substantially higher depending on the aforementioned factors. The coverage limit of NFIP policies is capped at $250,000 for structural damage and $100,000 for personal belongings.
Private flood insurance policies can be 20% to 50% less expensive than NFIP policies, depending on the provider and the above factors. Private policies often offer higher coverage limits than NFIP policies and may cover additional protections for risks such as temporary living expenses or earth movement caused by flooding, which NFIP policies will not cover.
Is flood insurance worth it?
Could you afford to pay out of pocket to repair your property in the event of a flood? Your answer to this question will usually dictate whether or not you should have flood insurance. Unfortunately, even if you reside in a low-risk flood zone, you’re not immune from risk, as Lone Star Legal Aid found that 20% of all flood claims come from property owners living outside of high-risk flood zones.
Flood restoration can be costly, and additional expenses like emergency accommodation and potential medical bills quickly add up on top of the repair work. The only way to suitably protect yourself in these situations is to have a robust flood insurance policy.
If you do find yourself with property damage due to a flood in Texas, our flood restoration specialists are here to help!