Flood Plain Insurance
The cost of flood insurance people pay nowadays is affected by the location where their house is located. Those people whose houses are located in higher-risk areas pay higher premiums and higher excess on flood-related claims as compared to those whose houses are in low-risk areas. Premiums on a house in a high-risk area may differ for example around 20 to 30 per cent than in low-risk areas.
In the United Kingdom, more than two million properties are located at flood risk areas. When you seek the services of a flood insurance provider, they have their own maps to determine if you live in a low-risk area. Although your insurance plan should pay for all flood damage, your insurance provider also expects you to take necessary precautions to protect your properties in case of a flood, too.
If you live in a flood plain, expect your premiums to be higher and an expensive burden. Some insurance providers may even refuse flood cover on people in high-risk areas cover. You can not expect insurance providers to give you a policy when your house is a on a flood path and you get hit by floods often. It will be suicide on their part, unless you will want to pay a high premium.
If the insurance providers think your house is in a high-risk area, they may even resort to getting a surveyor’s report before giving you a policy. If they give a policy to whoever applies without considering the high-risk factor, they will have to increase the cost of premiums for everybody to meet the cost of insurance claims.
An estimate by the Government’s Foresight Future Flooding report in 2004 showed that the annual average flood damage could increase even up to 20 times by the end of the century as a result of climate change, so not only the UK suffering from flooding because this is a global problem.
Floods can not be prevented but the people can do something to protect their homes from floods. Here are some tips from the Association of British Insurers (ABI). Concrete floors can be replaced with wood and cover with tiles. Chipboard or kitchen and bathroom units can be replaced with plastic equivalents.
The same is true with gypsum plaster. This can be replaced with more water-resistant material, such as lime plaster or cement render. You can also move service meters, boiler and electrical points to areas above likely flood level. One-way valves could also be put into drainage pipes to prevent sewage backing up into the house, hence to prevent flooding.
The bottom line is that if you are moving house or buying a property for the first time, always check whether your intended new home is on a flood plain or not. This information is readily available on the internet on official Government web sites, so there is really no excuse for not knowing - and if you do not know, you can be sure that you future insurance company does!
Texas Flood Insurance Information
Texas, Florida, and Louisiana have the most flood related damages in the United States. Texas has millions of acres that are prone to flash floods, more than any other state. Large coastal areas and high rainfall rates contribute to the flooding problem.
Congress created the National Flood Insurance Program (NFIP) in 1968 to provide coverage that most property policies don’t have. Virtually, no insurance companies include flood coverage in their homeowners insurance plans. Some people have a misconception that they don’t need flood insurance because of federal disaster programs. Actually disaster plans are normally in the form of a loan that has to be paid back, and this is not a good substitute for flood insurance.
The cost of flood insurance depends on the area where you live and the amount of coverage that you get. Areas outside of 100 year flood plain maps will qualify for very low rates. Please note that being outside of the flood plain does not mean there is no risk!! Over 25% of flood claims made are in areas outside of the normal flood zones.
Listed below are rates that apply in some low risk areas. Rates will be higher in areas that are within the flood plain. Flood insurance is generally inexpensive and worth considering to protect your property and/or your home. You can’t wait for a big storm and then get insurance because a flood policy usually goes into effect 30 days after you buy it!
Contents Only Coverage:
$8,000 - $61/year
$20,000 - $116/year
$40,000 - $146/year
$60,000 - $166/year
$100,000 - $196/year
Building and Contents Coverage:
$20,000 - $8,000 - $112/year
$50,000 - $20,000 - $180/year
$100,000 - $40,000 - $233/year
$150,000 - $60,000 - $264year
$250,000 - $100,000 - $317/year
How to Obtain Flood Insurance in Florida
All across the United States, there are a large number of homeowners who have flood insurance coverage on their homes. An even larger number of homeowners do not have flood insurance coverage, even though they should. Due to a large number of natural disaster and rare weather events, there are many American homeowners that are interested in obtaining flood insurance coverage for their home.
Homeowners all across the United States are considering flood insurance coverage for their homes, but a large percentage of that number comes from Florida. During the spring and summer, many Florida residents have an increased flood risk. This flood risk increases due to traditional storms with a large amount of rain and hurricanes.
Since Florida residents are at risk for flooding, damage to their homes is likely to occur. Instead of just waiting for the next storm tocause damage, there are a large number of residents who are taking action. This action often involves purchasing flood insurance in Florida.
Purchasing flood insurance in Florida is the same as purchasing it anywhere else in the United States. The only difference between the two is that flood insurance in Florida is often more important than anywhere else in the country. This importance is due to the increased risk of thunderstorms and hurricanes. There are some residents who cannot go five years without experiencing local flooding.
Without flood insurance, the cost of repairing or rebuilding a home is often too much for a traditional homeowner to afford. To prevent themselves from losing their home or going into debt, a large number of residents are obtaining flood insurance in Florida. To obtain that flood insurance, many individuals are visiting their local insurance agents.
Obtaining flood insurance in Florida through a local flood agent is possible, but many homeowners are unaware that they could save additional money by obtaining coverage elsewhere. Many states have laws that allow flood insurance agents to offer discounts on the flood insurance policies that they offer. Despite these state laws, not all insurance agents do offer the discounts.
To obtain flood insurance in Florida for a low price, residents are encouraged to examine a wide variety of different insurance agents. One of the agents that should be closely examined is AmeriFlood. AmeriFlood is currently offering a discount of up to 12% for residents who live in qualifying states. The coverage plans being offered are the same as ones being offered by other agents. The only difference between the two is that AmeriFlood offers discounts that many other agents don’t.
Cheap food insurance plans, similar to the ones offered by AmeriFlood, are what enable a large number of Florida residents to obtain flood insurance. Purchasing flood insurance in Florida is important. Doing so will not only save money now, but in the future as well.
Flood Insurance - Are You Positive You Are Covered?
The 2007 Atlantic Tropical Hurricane Season is rapidly approaching and folks are hoping that this season will be mild like the 2006 Tropical Hurricane Season, which meteorologists said was about an average season. We all hope so, as the memory of Katrina, Rita and Wilma, the three sisters from hell still lingers in our minds. That insane 2005 Atlantic Tropical Season will take a great number of years to forget. The folks in New Orleans and along the Gulf Coast may never forget it.
This brings me to another topic that folks often do not discuss; Flood insurance. You see it is usually not the winds that do the most damage from a Hurricane it is the flooding that just ruins everything. Worse off nearly all home owners policies do not cover such things? That’s right, so it makes sense to talk with an expert about this prior to the Hurricane Season and make sure you are covered if you live in a Hurricane Zone.
Recently, there was a Supreme Court ruling after one insurance company did not pay for flood insurance due to a “fine print” mention which excluded wind driven rain. The Insurance Company won the case and did not pay for the damages. Thus, in my opinion it might be wise to talk with a certified expert insurance person and make sure you know if you are covered yet.
When did Noah build the ark; before the rain, remember? I certainly hope this article is of interest and that is has propelled thought. The goal is simple, to help you in your quest to be the best in 2007. I thank you for reading my many articles on diverse subjects, which interest you.
Houston Flood Insurance Information
The Houston area has an especially high risk for flood damage. The city is in an area that is at risk for hurricanes that can bring storm surges and very high levels of rainfall. The elevation of the city is close to sea level. The ground is mainly composed of clay that doesn’t absorb water well. There are rivers, streams, and drainage channels that pass through Houston on the way to the gulf. There are bayous for storm water that can overflow with heavy rain and flood nearby areas. Heavy construction in the city often can result in flood problems for surrounding areas. Changing weather patterns from global warming and other factors may result in more intense weather events in the future.
You can visit the fema.gov website to view maps of the Houston areas flood zones. You will find that a large percentage of the city area has an elevated risk of flooding. Areas that have less risk are designated on the flood map as being in B, C, D, or X zones. It is important to remember that residents in low risk zones can suffer flood damage. If fact about 30% of all flood damages claims are from areas considered as lower risk.
We you are considering buying or leasing a residence it is important to consider the risk of flood. Ask your realtor or an insurance agent to tell you the flood zone for the property you are considering. If possible select a location in the B, C, D, or X zone. When you buy a property in a higher risk flood area you should consider the higher cost of flood insurance in your decision.
Flood insurance in most areas is inexpensive. Here is a chart of the current cost for homes that qualify for a preferred rate:
Home Coverage $20,000 Property Coverage $8,000 = $112 per year
Home Coverage $30,000 Property Coverage $12,000 = $138 per year
Home Coverage $50,000 Property Coverage $20,000 = $180 per year
Home Coverage $100,000 Property Coverage $40,000 = $233 per year
Home Coverage $200,000 Property Coverage $80,000 = $296 per year
Home Coverage $250,000 Property Coverage $100,000 = $317 per year
Contents only coverage is also available. Texas residents can get more information at my Houston Flood Insurance website.
Finding Cheap Flood Zone Insurance Rates
As new providers of flood zone insurance join the market every year, the rates are becoming competitive. To add to this, other retail outlets are already offering flood zone insurance, too and this is proving to be an advantage to the insurance policy holder.
As in any other product, the more providers or supply there is in the market, the higher the competition is there. This means that as a customer, you have a much better chance of finding an insurance policy without sacrificing the quality of service you get.
That is why it is always wise to shop around for the appropriate company to give you the best rates. You will find that if you make a comparison of the quotes and rates of each company, there is a difference in the cost of amounts for the same amount of cover of the same property and the same contents.
Shopping around before committing yourself to one company is an advantage for you. You may save hundreds of pounds each year because the more quotes you from more companies you get; the better your chances are of getting the best flood zone insurance rate.
If you go to one insurance company and apply for a policy, you have no idea if what they are giving you is the lowest and the best rate possible because you have nothing to compare them with. To do this, you can browse for all the providers in your area, get quotes and compare the rates in order to find out which is the most affordable.
You can search for insurance companies from the comfort of your homes or offices through the internet. You can find everything you would want to know by a few clicks on your computer, and you can fill in online forms to give them the information they require. This is also advantageous for you because when you apply for an insurance policy online, you can find and choose the cheapest rates without paying extra costs because you do not need to engage the services of a sales staff anymore.
Another option is for you to go to a general insurance broker and engage his services to find inexpensive flood insurance rates for you. There are some people who are paid by insurance companies to search the market and give you inexpensive quotes they can find for you. Some insurance brokers are on a commission basis so when they do the search for you, they will really give you the cheapest quotes they can find so you will buy your insurance policy from them.
This will leave you free from doing the actual work of searching for the appropriate flood zone insurance rates but in some instances you may have to pay for the services of the one who will do the searching for you.
What Your Flood Insurance Covers
If you are planning to get a flood insurance cover but do not have the time to go to the providers in your area, you have one option and that is to apply online. The internet can help you choose an insurance policy provider who will fit your needs and you can fill in necessary forms online. This method however, may confuse you if you do not look at the fine prints for particular policies very closely. Here are a few tips when you apply for a flood insurance cover online.
Most of the insurance companies provide contents insurance policies against both man-made and natural calamities like theft and vandalism, fire, explosions, slippage, burst pipes, earthquakes, water or oil leakage, severe weather like storms, lightening, floods, and others. In all these emergencies, you need protection for your property or a replacement when damage or loss could not be avoided.
In the UK, flooding insurance is available for you as a customer but you have to visit the insurance providers or browse through the internet to find one which is not only inexpensive but also meet your needs.
Two of the most commonly offered flood insurance policies in the UK are the buildings cover and home contents cover. The home contents insurance cover in the UK is designed to cover your personal belongings and almost everything you own. Home contents cover could include household goods and items, computer equipments, furniture and furnishings, kitchen equipment, video, audio equipments, and other personal belongings. These contents could be replaced or covered by your insurance policy when these are lost or damaged beyond repair due to floods.
Buildings insurance cover on the other hand protects the basic building or structure of your house or property. This means your insurance policy will cover the windows, floors, walls, outbuildings like garage and shed or permanent fixtures like kitchens, toilets and baths, interior decorations and even bedroom cupboards.
When you only get contents cover, only your personal belongings and valuables that you can take away from your house will be under the flooding insurance policy. Buildings cover includes those fixtures that you can not remove from your house even when you move to a new location.
A buildings insurance will cover the loss or damage of the actual structure and fittings of your home in case of flood. It is therefore important that the buildings cover you get should be enough or more than enough to cover the rebuilding cost of your house. Your insurance policy provider usually estimates the rebuilding costs of your house and structures so you will know what level of insurance cover you need.
Your house and house contents face risks of damage from many calamities, flood included so you must realize by now how important a flood insurance policy is. Do not wait to be a victim of calamities like floods without a proper cover. Spending a few hundred pounds for insurance could spell the difference in your life.
Reducing Your Flood Insurance Premium
How much of your property is covered by your insurance policy? Have you limited the cover of some contents of your house to cut the cost of your insurance premium? Only when emergencies arise like flooding and you find all your precious possessions float away or get damaged right before your eyes, and you get an amount that is not enough to cover all your losses or have your house rebuilt , you will realize that cutting costs is not a good idea after all.
However, there are hundreds of ways to reduce your insurance premium. The rule is not to tie yourself to the very first insurance provider that comes your way. There are so many insurance companies in the United Kingdom that you can choose from. Take the time out to get as many quotes as possible so you can compare their features and get a cheaper premium.
The next thing you can do is to come up with necessary measures to secure your home. Floods can not be prevented but you can do something to reduce the risk of damage to your home and the contents. You can not relax and leave everything to your flood insurance provider, most especially if your house is located in a flood zone area.
When you have made measures to secure your home and property, your insurance company will see that you have made preventive measures and see you as a better risk. Then they may lower the premium quotes. Look out for special offers and bonuses some insurance providers will be offering to their clients from time to time. Some insurance providers may even offer discounts on certain policies and this is something you also have to keep an eye on.
If the house and the contents you acquired are under mortgage, chances are your mortgage lender may provide the flood insurance for your property for them to feel safe that their investment is protected but you still have a choice to shop around for an insurance company which can give you the best deal.
If you make your own choice, the mortgage lender may also have to check and approve the flood insurance policy you chose. They may check the policy details to see that your property is in good cover when emergencies arise.
Again, take time to browse and shop around for several quotations before you make your decision. You can navigate through the web for all the insurance providers in your area. If you have sifted through your search, make a call and get additional information.
If you have several quotations already and you still have not decided on one who offers the most reasonable flood insurance premium and can satisfy your needs, you may also consider paying a higher excess. This can be a cheap way to get an excellent policy, but at a reduced price. Paying a larger excess, in the event of an emergency is a small price to pay when you consider the sums involved in recovering the total value of your property and possessions.
Flood Insurance Basics
A flood is not always defined as a wall of water rushing towards your property and taking all your belongings into the river to merge with the other belongings of your neighbours. Even a single inch of excess water is enough to cause costly damage to your home and to your belongings.
A flood is something that may happen in the middle of the night while you are sleeping or when you are out of town for a holiday. It is something that may come in at your most unexpected moment, and you are helpless when it comes. This is why you need to get a flood insurance, which is a specific insurance policy that protects your property against damage caused by flood.
People who live in an area which is high risk for flooding should definitely consider getting a flood damage insurance. Insurance providers which offer cover policies against flood have their own means and use topographical maps to assess the location of your home and see how high the risk is for flood damage is. Because of this, many insurance providers may even refuse flood damage insurance to customers who are at high risk.
Getting insurance for flood cover is just one of the insurance policies available in the market today. People get health insurance, auto insurance, fire insurance, travel insurance, and others but flood insurance is very necessary especially if you live in a flood risk area.
You may not be aware of this but losses and damages due to floods are 30 times more likely to occur than fire losses and this is especially true if your house is located in a flood zone. If you value your home and its contents which you have spent so much to acquire, then think twice and do not scrimp on a few hundred dollars a year to get a proper insurance policy. Do not wait until it is too late. You may also find it pays to get a policy cover for your house building and the contents as well.
Floods are caused by several factors. Urbanization, for example is one of the movements of men that results to flooding. As more and more concrete roads and parking lots are constructed to replace the natural land, the ability of natural lands to absorb water is decreased.
The changing weather pattern is another factor that has made the occurrence of floods more severe and frequent. When there is a mudflow, tidal waters overflowing or when the land along the shore of a lake collapses, flooding is not a remote possibility.
Flood insurance offers customers many benefits in the UK but due to constant flooding, the flood insurance premiums have gone much higher in the UK than they usually do. It is wise to have an appropriate insurance policy because when the need arises, your flood insurance policy will compensate for the loss or damage of all the items you have declared and you can get your insurance claim in no time at all to help you recover.
Hurricane Recovery: Financial Institutions Step It Up
We have all heard the stories of financial institutions exploiting consumers with shady practices such as exorbitant interest rates, hidden fees, and the like. These accounts anger us and, rightfully, those that practice these deeds should be exposed. Fortunately, not all reports are bad as evidenced in the way many companies are treating their customers in light of recent disasters such as Hurricanes Katrina and Rita. Let’s take a look at how some companies are responding in the wake of disaster.
1. Disaster Relief Programs. If you live in an area designated by the Federal Emergency Management Agency [FEMA] and own property, you may be eligible for relief depending on your financial institution and the program they have in place. One well known bank, for example, is automatically deferring mortgage and home equity loans for as long as ninety days, or three payments. In addition, this same bank is not assessing late charges for that timeframe, nor are they reporting negative information to affected consumers credit reports.
2. Payment Holidays. Similar to disaster relief programs, several credit card companies are allowing their customers to not make credit card payments for a two or three month time period. Two institutions have stated that they will not collect late fees, but in each case it is not clear whether customers will still be charged interest on their unpaid balances.
3. Loan Extensions. The financial arms of several automakers are allowing customers in affected areas to defer loan payments for up to three months. Essentially, these institutions are extending the loan’s length and adding the months to the end of the loan period without charging customers fees for this service.
If you live in any of the affected areas, it is best to contact your financial institutions directly to learn exactly what type of deferral plans, if any, they have in place. Some programs are less clear than others, particularly the payment holidays for credit card holders since it isn’t always apparent whether you will still be charged interest during the affected time period. Still, these types of compassionate gestures by certain financial institutions can create plenty of goodwill for consumers and they are the types of corporations certainly worth patronizing for the long term.
We have all heard the stories of financial institutions exploiting consumers with shady practices such as exorbitant interest rates, hidden fees, and the like. These accounts anger us and, rightfully, those that practice these deeds should be exposed. Fortunately, not all reports are bad as evidenced in the way many companies are treating their customers in light of recent disasters such as Hurricanes Katrina and Rita. Let’s take a look at how some companies are responding in the wake of disaster.
1. Disaster Relief Programs. If you live in an area designated by the Federal Emergency Management Agency [FEMA] and own property, you may be eligible for relief depending on your financial institution and the program they have in place. One well known bank, for example, is automatically deferring mortgage and home equity loans for as long as ninety days, or three payments. In addition, this same bank is not assessing late charges for that timeframe, nor are they reporting negative information to affected consumers credit reports.
2. Payment Holidays. Similar to disaster relief programs, several credit card companies are allowing their customers to not make credit card payments for a two or three month time period. Two institutions have stated that they will not collect late fees, but in each case it is not clear whether customers will still be charged interest on their unpaid balances.
3. Loan Extensions. The financial arms of several automakers are allowing customers in affected areas to defer loan payments for up to three months. Essentially, these institutions are extending the loan’s length and adding the months to the end of the loan period without charging customers fees for this service.
If you live in any of the affected areas, it is best to contact your financial institutions directly to learn exactly what type of deferral plans, if any, they have in place. Some programs are less clear than others, particularly the payment holidays for credit card holders since it isn’t always apparent whether you will still be charged interest during the affected time period. Still, these types of compassionate gestures by certain financial institutions can create plenty of goodwill for consumers and they are the types of corporations certainly worth patronizing for the long term.