Flood insurance recommended for newcomers to Houston
Although the National Oceanic and Atmospheric Administration (NOAA) has predicted that the 2015 Atlantic hurricane season will have fewer named storms than historical averages, people in the Houston area know that it is best to be protected and well prepared for the unexpected.
June 1 marked the official beginning of hurricane season, which will last through November.
As witnessed with the torrential rain that fell in the area at the end of last month, flooding knows no boundaries and its impact can be both dangerous and devastating.
Concerns over flooding and weather related events are common for people who are moving to Houston, particularly after seeing the dramatic news coverage of the recent storms.
Lynn Breedlove, relocation director for Berkshire Hathaway HomeServices Anderson Properties, said that talking about Houston’s weather issues is part of the discussion that she and her real estate agents have with relocation buyers.
She said that their job is to educate newcomers by providing information and resources that go far beyond merely selling homes.
As such, Breedlove explained that flood insurance is an important topic of discussion, and something that is always recommends.
“When I do group move presentations for people moving to Houston, I always tell them that I live in Cypress, Texas, and although I’ve never had any flooding, that I have flood insurance on my home,” Breedlove said. “I always recommend it, because you never know what’s going to happen, no matter where you live in Houston.”
She added that the Seller’s Disclosure notice is one of the most important documents for relocation buyers when they are considering purchasing a home, because it provides them with vital information about the condition of the property, including whether or not any prior flooding has occurred.
Breedlove reiterated that it doesn’t matter whether a home is situated in an area that is prone to flooding or not, that flood insurance is a critical necessity for all home buyers in the Houston area.
“We even go a step further when a transferee just isn’t quite comfortable and has concerns about purchasing a home in a particular area.
“We typically give them the names of a couple of insurance companies that they can call to see if there are any proposed changes to the flood zone maps.” Breedlove said.
Roland Cardner has been in the insurance business in the Houston area for 18 years, and is owner and partner of Texas Insurance Agency. Like Breedlove, he also encourages all Houston area residents to carry flood insurance.
“Flood insurance is one of the best insurance values out there on the market, because you get a big bang for your buck on a peril that is going to come back repeatedly year-after-year in this area,” Cardner said.
While certain areas are called preferred flood zones, meaning that they are at low or moderate flood risk, Cardner stressed that the Houston area as a whole is in a flood zone, which puts everyone’s property at risk.
When the Houston area is hit with a deluge of rainfall, the areas affected the most could be anywhere due to the random nature of weather related events, and how fast the storm might be moving.
For that reason, Cardner said that he provides his clients with quotes for flood insurance and makes sure that they understand that their homeowner’s insurance policy does not cover flooding, which makes this additional policy is so essential.
In the event that a new client decides to forgo a flood insurance policy, Cardner said that he has them sign a rejection form that states that they understand that there is a big hole in their coverage.
“Flood insurance protects homeowners from rising surface water from any source. That includes things like overflowing streams and bayous, and when city workers break a city pipe that floods a neighborhood,” Cardner said. “The homeowner’s policy does not cover homeowners in any way, shape or form from rising surface water.”
It is important to note that there is typically a 30-day waiting period before a flood insurance policy can go into effect, particularly in the preferred flood zone areas. This is meant to deter people from purchasing flood insurance right before a projected storm.
For properties in the high flood risk areas, mortgage lenders usually require flood insurance, and those policies can be effective the day of closing since the mortgage company requires them.
Cardner said, “The advantage of having a loan closing requirement or a flood map revision is that you are given the opportunity to purchase flood insurance and the 30-day grace period is waived. That’s an opportunity for new buyers who are coming into Houston to get flood insurance and have it start now.”
Michelle Sandlin is a writer, journalist and relocation industry expert. She serves on the Board of Houston Relocation Professionals (HRP), and was President of the organization in 2014. Follow her on Facebook: www.facebook.com/TheMichelleSandlin and on Twitter: @MichelleSandlin. Also visit “On the Move — Exploring Houston Relocation with Michelle Sandlin” at blog.chron. com/onthemove. For questions and comments, email: michelle.sandlin@me.com.