Understanding Flood Insurance

Introductiondetermine which land areas are likely to be flooded.
Flood Insurance protects your house &These maps are based on surveys of the elevation of
possessions from loss by rising water from theland areas relative to known flood risks (creeks, rivers,
outside. Think about a river or creek overflowing intolakes, etc.).
your home... a frightening thought. Homeowner's andFloodplain - Any normally dry land area that is
other property insurance specifically exclude this peril.susceptible to being inundated by water often because
If you own a house in a known flood risk area (i.e., theit is adjacent to a watercourse. The 100-year
100-year floodplain) with a bank loan, your mortgageFloodplain is the land that would be inundated by a
bank will normally require flood insurance. For most100-year flood event.
homeowners, handling this mortgage bank floodFlooding - Rising water from outside enters a structure.
insurance requirement is all they focus on and theyAn example would be a house inundation from a flash
ignore their true flood hazard. Then when a majorflood. The flood peril also includes mudslide.
storm does come, they have inadequate floodHundred Year Flood - An engineering term used to
insurance coverage often with too little coverage ondescribe the relative flooding risk. A house that is
their house (often only the home loan balance) and nolocated inside the Hundred Year Floodplain is
contents protection.considered to have a 1% chance of being flooded in
Also, over 25% of flood damage happens each yearany given year. Most mortgages require that a house
to properties outside of a known flood risk areathat is located in a Hundred Year Flood risk area must
(100-year floodplain). Central Texas had a recentbe insured for flood.
example of an "out-of-the-blue" rain event that causedLOMA (Letter of Map Amendment) - Document used
very intense flooding well beyond the known flood riskto establish that a building is not located in a Special
areas. The so-called "Marble Falls Rain Bomb" in JuneFlood Hazard Area. A typical situation in which a
2007 damaged over 100 homes & businessLOMA would be important is when a part of a house
around the city of Marble Falls with a very sudden 19lot is subject to flooding in a 100-year storm but the
inch rainfall. A "Preferred Risk Flood Insurance Policy,"house itself has been built at a higher elevation.
available to homeowners beyond the 100-yearNational Flood Insurance Program - This is the
floodplain, can protect your home and possessions atgovernment agency that provides insurance for the
a very modest price.flood peril in the United States. Insurance companies
My city of Austin is part of the Central Texas "Flashare licensed to sell flood insurance policies for this
Flood Alley" and has a long history of major floodinggovernment agency. All financial backing, rules and
along its creeks and the Colorado River. Dams locatedcontract terms are set by the National Flood Insurance
on Lake Travis and Lake Buchanan, built in the 1940's,Program which is part of FEMA.
has helped control the very destructive flooding of theSpecial Flood Hazard Area - A geographic area that is
Colorado River. Today, the biggest risk is along theprone to flooding. An example would be an area
many creeks in our urban areas and the Coloradoadjacent to a river that has an elevation low enough to
River south of Lady Bird Lake dam. Shoal, Bull andbe subject to flooding.
Walnut creeks in North Austin plus Onion andFlood Zones Designations:
Williamson creeks in South Austin have considerableA - River / stream flood risk
history of inundating adjacent areas.AE - River / stream flood risk with mapped base flood
Our neighboring Hill Country also has many creekselevations
subject to flooding plus several major rivers that canAO - River / stream flood risk with shallow water
rage with great torrents after heavy rain. The Llanodepths (1-3 feet)
and Pedernales Rivers both have had major floodAH - River / stream flood risk with shallow water
events in recent years. The Llano River, surging intopaths (flows of 1-3 feet)
Lake LBJ has caused major flood damage along itsV - Coastal or Storm Surge flood risk
normally calm waters on several occasions.VE - Coastal or Storm Surge flood risk with mapped
The hardest part of understand both your flood riskbase flood elevations
and flood insurance policies is the terminology. MostX - Not a Special Flood Risk Area (elevation above
folks are confounded by its mix of insurance andthe 100-year floodplain)
engineering terms. Once you have a key to decipherFlood Insurance Overview
the flood insurance nomenclature, things will makeProperty Coverages:
more sense. You also want to understand what yourBuilding - Provides protection up to your limit for
"Flood Zone" designation means. Finally, I have includeddamage or destruction of your house or other dwelling
an overview of the main components of a floodfrom peril of flood including rising water and mudslide.
insurance policy.Contents - Provides protection for your clothes,
Flood Insurance Terminology:appliances, furniture and other possessions at your
Base Flood Elevation - This is the level at which thereresidence from peril of flood including rising water and
is a 1% chance of flooding in any given year. A buildingmudslide. Flood Insurance offers "Actual Cash Value"
that is located on land below the "Base Floodas the basis of settlement. Contents coverage is
Elevation" is inside the 100-year floodplain.optional and has a separate deductible.
Elevation Certificate - Clarifies the relative elevation ofSecondary Structures (fences, sheds, etc.) - None (No
your house in relation to the know flood risk. Thiscoverage is extended to secondary structures from
allows for more accurate rating of the flood insurancethe standard flood policy. Coverage is only available
policy and may reduce your flood insurance rates.for the main structure.)
Flood Maps ("FIRM" - Flood Insurance Ratings Maps) -Loss of Use: None (not available which is unfortunate)
Created by FEMA's (Federal EmergencyHelpful Links
Management Agency), these maps were created toFEMA / National Flood Insurance: FloodSmart.