Central Texans’ Interest in Flood Insurance Rises Along with Claims

Insurance agents in Austin, Texas, report the interest in homeowners obtaining flood insurance coverage has risen dramatically after two recent rains that have flooded portions of Austin and neighboring communities. Approximately 650 homes and businesses were either damaged or destroyed in Austin and Travis County by flood waters in the most recent storm that saw Onion Creek rise to record levels, the Insurance Council of Texas reported.

As of Nov. 7, 680 flood insurance claims had been filed in Hays, Travis and Williamson counties, Federal Emergency Management Administration Public Affairs Specialist Jacqueline Chandler told Insurance Journal. Monetary amounts from those claims were not immediately available because they have not been closed. Chandler said more claims would likely be filed.

“Just about everyone who is seeking to renew their homeowner insurance policies has asked about flood insurance coverage,” said Megan Wilkie of the Watkins Insurance Group in Austin. “If they don’t buy it, they are certainly taking a close look at it.”

Most homeowners who purchase flood insurance policies have done so, because they live in a flood plain and have a mortgage with a bank that requires flood coverage. However, statistics from the National Flood Insurance Program show about 25 percent of homes that are flooded are not located within existing flood plains.

Homeowners, business owners and renters must all obtain a separate flood insurance policy from the National Flood Insurance Program to be covered against floods or rising water. Flood policies can be purchased through any insurance agent or company.

“A lot of people think it’s not going to happen to me, but it just takes one clogged sewer drain or nearby construction to have a torrent of water rushing toward your door,” said Jodi Carey of Round Rock/Whorton Insurance Agency.

For cars and trucks, a driver must purchase comprehensive or other than collision coverage. This coverage protects drivers from auto theft, burglary, vandalism, hail and flooding.

For those living inside a 100 year flood plain, the possibility of flooding always exists. “It’s amazing how often those 100 year floods occur,” said Mark Hanna, a spokesman for the Insurance Council of Texas.

Topics Trends Texas Claims Flood Homeowners