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Protecting Your Money: Buying flood insurance

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Posted at 7:25 PM, May 26, 2021
and last updated 2021-05-26 21:12:16-04

CORPUS CHRISTI, Texas — Hurricane season is exactly one week away. It's time to protect yourself, your family and your property.

In today’s Protecting Your Money segment we spoke with a local insurance agent about getting flood insurance.

Kristin Reynolds, a local insurance agent who specializes in flood insurance says there is a time when it can be too late for flood insurance.

"There is, unfortunately," she said. "When the storm's already here."

That's because there is a 30-day waiting period before your coverage kicks in.

A lot could happen during that time.

There's a popular misconception that you might already be covered for floods in your homeowners' insurance.

Reynolds says flood damage is specifically excluded in homeowners insurance.

"Most people think if they have insurance in place, it’s going to cover them for anything that happens," she said. "But unfortunately, that’s just not the case anywhere in the whole United States, not specifically just our area."

In insurance terms, flooding means water rising into your home from outside.

But why wait until then to protect yourself and your property?

Some might say it’s too expensive.

But that depends where you live.

Areas near Oso Creek on the city’s south side, and the Island, are considered high risk.

Those areas are more expensive, according to Reynolds.

Cost is also determined by the elevation of your home.

The higher the risk, the higher your rate.

"The maximum you can get is $250,000 for your building and $100,000for your personal property," she said. "That’s $572 for the year. That’s the highest rate you can get."

And by the way, Reynolds says, because the money’s going to the federal government, they want full payment up front.

Other questions you might have:

  • OK, but how much should I get?

Reynolds points out a clause in the flood policy.

"There is a clause in the policy stating that if you don’t insure to at least 80% of your replacement value of your home, then you’ll only be paid the actual cash value.," she said.

But hey, that’s better than nothing, right?

  • What’s the difference between flood insurance and Windstorm?

Latitude and longitude are taken into consideration for Windstorm.

  • Does flood insurance cover burst pipes?


  • Can renters qualify for flood insurance?


And here's something else to keep in mind.

Flood insurance kicks in regardless of declarations of natural disaster, Reynolds says.