Flood and Earthquake Insurance
One common misconception about the perils of Flood and Earthquake is that they are NOT in the most common insurance policies. They must be purchased and the cost is directly tied to the amount of exposure to risk you have to them.
The principal way people purchase flood insurance today is through the National Flood Insurance Program or NFIP. They control the policy form and pricing for the coverage. You may purchase it through from NFIP directly or an insurance carrier that is a “write you own” carrier. The company contracts with the Federal Government to process and underwrite the risk for the NFIP. While your policy may have an insurance company’s name on it, the coverage is with the NFIP program.
Prior to Hurricane Harvey in Texas most of us would not have believed in a 1 in a 1000 year flood. Did you know that 35% of all floods occur in non-designated flood zones? It is estimated that less than 20% of the people affected in Texas by Harvey had flood insurance. And Houston is a flood prone area of the country.
Whether you are in a flood zone or not, we can answer your questions about the benefits of having Flood Insurance.
Earthquake insurance is a form of property insurance that pays the policyholder in the event of an earthquake that causes damage to the property. Most ordinary homeowners insurance policies do not cover earthquake damage.
Most earthquake insurance policies feature a high deductible, which makes this type of insurance useful if the entire home is destroyed, but not useful if the home is merely damaged. Rates depend on location and the probability of an earthquake loss. Rates may be cheaper for homes made of wood, which withstand earthquakes better than homes made of brick.