Texas is amongst the top of the nation in rankings for weather-related property damage each year. Therefore, knowing the different types of insurances available and their coverages is crucial. If you live or plan to live in one of the 14 coastal counties or parts of Harris County or Galveston Bay you should know of separate policies that are available that may help you protect yourselves from losses caused by flooding.
As Private Mortgage Investors, we recommend that all borrowers determine their flood risk. First, you can visit FEMA’s Flood Map Service Center and search by address. We all live in a flood risk area; the difference is knowing whether it’s a low-, moderate-, or high risk. If you live in an area with low or moderate flood risk, you are 5 times more likely to experience a flood than a fire in your home over the next 30 years.
When financing a home or property with Associated Mortgage Investors you may be required to buy separate policies to cover for wind, hail and flood damages as Homeowners, farm and ranch, renters, condominium and windstorm policies do not cover damage from rising waters. The reason for this is because Homeowners policies will exclude wind, hurricane, and hail if your property is on the Gulf Coast.
You should be able to buy Hurricane and Windstorm Insurance from The Texas Windstorm Association (TWIA). They are the state’s insurer of last resort for wind and hail coverage for the Galveston Bay and Harris County.
The flood insurance policy can be purchased from the National Flood Insurance Program (NFIP) which is administered by the Federal Emergency Management Agency (FEMA). Local insurance agents sell both TWIA and NFIP flood policies and can tell you more about the program in your area. Flood insurance is subsidized by the government and therefore inexpensive, hence Houston Private Money Lenders encourages homeowners to purchase flood insurance even if their home is not in the flood zone. One can order an Elevation Certificate from a surveyor and typically reduce the cost significantly.
Certain Gulf Coast residents may be required to purchase flood insurance before they are eligible to purchase a TWIA policy (specific requirements apply) so don’t wait until a hurricane enters the Gulf of Mexico, because, at this time, you will no longer be able to change or purchase a new windstorm coverage.
Flooding is the most common natural disaster affecting every state in the U.S. It can be caused by storms, dams or levees breaking, new development changing how water flows above and below ground, snowmelt and much more. It can be emotionally and financially devastating event. Just one inch of water in a home can cost more than $25,000.00 in damage. Do not risk it, contact your local insurance agent today and get covered. Having flood insurance can be the difference between recovering and being financially devastated.
Moreover, a recent Houston Chronicle investigation found that “of the more than 204,000 county homes and apartments that flooded during Harvey, nearly three in four were outside of the 100-year floodplain. In those zones, which have a 1 percent chance of flooding in a given year, homeowners are required to purchase subsidized flood insurance through the federal National Flood Insurance Program.”
AMI Lenders, Private Mortgage Investors in Houston, takes pride in providing alternate sources of financing for all types of properties in residential and commercial fields. Our licensed loan originators have over sixty years combined experience providing better service and better hard money lending rates in Houston and surrounding cities. We are Houston's Private Mortgage Investors who funds most of our loans and responds quickly to hard money loans for bad credit usually within 24 hours.
Give us a call at 713-682-4400 or click here to view our lending terms or apply online for a Hard Money Loan that fits your needs in Houston.
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