MAY 27, 2015
AUSTIN, TEXAS
As Austin-area businesses begin to assess the damage wrought
by flooding that followed a weekend of drenching rain, there's a good chance
that some of them are up a creek without a paddle, as far as insurance goes.
According to Jim Gavin,
director of insurance information for the nonprofit trade association
Independent Insurance Agents of Texas, relatively few property owners in Austin
have flood insurance.
"There are more than 600,000 flood insurance policies
in Texas, and only 5,600 in the city of Austin," said Gavin in an
interview. "For everyone without a flood insurance policy, this will be an
uninsured event."
That means they'll have to eat the cost of the damage on
their own or wait for disaster assistance to help, he noted.
So who needs flood insurance, anyway? According to Gavin,
everyone does — especially if you live in an area prone to heavy rain.
"Everyone needs it because of the unpredictability of
Texas weather. Any place that can drop 10 to 12 inches of rain in an hour, and
you'll need flood insurance," said Gavin. "Realistically, flood
insurance is priced so that if you aren't directly in a flood plain, it's
fairly reasonable."
Gavin recommends that anyone wanting to learn more about
flood insurance to check out the Federal
Emergency Management Agency's National Flood Insurance Program, which provides affordable flood insurance policies for property
owners.
"They would much rather offer you flood insurance than
offer you a low-interest loan after the fact," said Gavin. "It saves
them – and you – money."
Federal law requires homes and buildings in flood plains to
carry flood insurance, but only if they have a mortgage from a federally
regulated or insured lender, according to the website of the National Flood
Insurance Program. Those living outside of high-risk flood plains are typically
not required to carry it.
And, though it isn't a factor in the damage seen Austin over
the weekend, the Texas Windstorm Insurance Association also
requires some Gulf Coast residents to buy flood insurance in order to
qualify for a TWIA policy.
Source: http://www.bizjournals.com