League City Blog

7 Key Flood Insurance Things to Know

7 Key Flood Insurance Things to Know

Flood InsuranceAs a Realtor doing business in the Bayou City (Houston, TX - League City, Clear Lake, Pearland, Friendswood, etc...) and on the Gulf Coast, it is important for me to know that my clients are getting accurate and timely information about insurance.

I recently sat down with Lane, McKinney of McKinney Insurance (281-996-0040)... Here is a guy for all of your insurance needs with a wealth of knowledge and service to back that up!


Special thanks to Lane for helping
me put this list together!
Lane McKinney
McKinney Insurance TWFG



Our conversation today was about Flood Insurance.  Here are the Key Flood Insurance Things to Know:

  1. Preferred flood zones are B, C, D, and X.  These are zones that are voluntary and not lender forced to carry flood insurance.  You decide whether you want to carry coverage or not.

  2. Get a flood-zone determinant to figure out your flood zone. This is also a good measure of your risk for flooding.  My home in League City is in zone X -- a great zone to be in... and most parts of the greater Bay Area are in preferred risk zones meaning that there is a lower risk for flooding.

  3. Standard flood zones are A, AE, and V.  These zones are mandatory coverage required by a lender.

  4. Preferred zones come in packages and are generally pretty affordable.  So with the uncertainties of amounts of rainfall in a ny one area for an extended amount of time, it is recommended as a low cost measure to insure against the possibliity of flash flooding.

  5. If purchasing flood insurance for a closing, then the policy can start on the day of closing.  If purchasing flood insurance anytime after closing, then there is a mandatory 30-day wait for coverage to be inforce.

  6. Flood insurance is government regulated by NFIP (National Flood Insurance Program) and is the same price no matter what carrier you go through.  The rates are determined by NFIP.

  7. Flood insurance covers "rising water" and is a separate policy to be purchased on its own.  It is not part of your homeowners insurance policy.
 

 

 

© 2004 - 2011 Brian Worrell Team, Realtors in League City, TX - 281-948-7042. All Rights Reserved. LeagueCityBlog.com.  Prudential Gary Greene, Realtors.

2 comments • League City, TX - Worrell Team, REALTOR, GRI, CNE • September 25 2011 01:35AM

Mortgage Companies Enforcing Unfair Flood Insurance Demands

This is NOT the first time I've heard of this happening.  A homeowner was told that they are in a the 100 year flood zone.  I know for a fact they are not.  I have seen many insurance companies use old maps and therefore attempt to provide high risk (expensive) flood insurance rates.

This time, I have a friend who is dealing with their Mortgage Company.  They are trying to get her to pay for 100 year flood plain rates when she lives in zone x.  The insurance company they use verified they are in fact in zone x.  Yet, the mortgage company is attempting to force them to use their affiliated insurance company and pay a really inflated price.  Her zone has not changed since closing over a year ago.

They should have no power to do this.  If this has happened to you, I strongly urge you to call several insurance companies and insist that they verify they are using the most up-to-date zone maps available!

It sounds like a class action law suite type of case to me.  It's really a whole lot better for the mortgage company if you are over-insuring your home.  And it sounds like an absolute scam.

 

© 2004 - 2011 Brian Worrell Team, Realtors in League City, TX - 281-948-7042. All Rights Reserved. LeagueCityBlog.com.  Prudential Gary Greene, Realtors.

1 comment • League City, TX - Worrell Team, REALTOR, GRI, CNE • May 17 2010 12:37AM