Matthew Campbell - Boothe Insurance Agency

Texas is expecting 2021 claims to reach six times the annual average - mostly due to the winter storm. Unfortunately when this happens, insurance companies have to offset losses by increasing rates:

Winter Freeze Sparks Claims Glut With $18 Billion in Losses Seen Crippled by a winter storm, Texas and other states are becoming a hotbed of insurance claims, with analysts expecting a hefty bill for losses.

Looking to purchase or refinance your home? You need not only a trusted insurance agent, but also a trusted mortgage broker to help you navigate the loan process and secure the best rate on your home loan. Contact my friends Brian Crumby & Ben Allison at Mega Mortgage of Texas at (281) 259-0400.

Mega Mortgage of Texas We are a mortgage broker company that can help folks get a mortgage loan to purchase, build, and refi

THE BELOW MODIFIED POST CONTAINS SOME VERY IMPORTANT INFORMATION ABOUT YOUR FLOOD POLICY. PLEASE DO NOT DISREGARD OR SKIM OVER, BUT READ IN FULL.

Many, if not most, of the homes which flooded in the Houston area are not located within the 100 year floodplain. Because of this, most of these homes currently receive preferred risk flood rating which is a fraction of the cost of a standard flood policy. However, FEMA’s National Flood Insurance Program manual outlines the following ways in which you may lose this preferred risk rating status due to claims history and disaster relief payments. If triggered, this will result in you paying over $1,000 per year more in premium. The goal of this article is to educate you on how to deal with any potential issue that may arise. FEMA’s National Flood Insurance Program guidelines state the following athttps://www.fema.gov/media-library-data/1503239443436-30b35cc754f462fe2c15d857519a71ec/09_prp_508_oct2017.pdf, the relevant excerpt of which is also listed below.

C. Loss History: A building’s eligibility for the PRP is based on the preceding requirements and on the building’s flood loss history. If any of the following conditions exists within any 10-year period, regardless of any change(s) in ownership of the building, then the building is not eligible for the PRP:

• 2 flood insurance claim payments for separate losses, each more than $1,000; or
• 3 or more flood insurance claim payments for separate losses, regardless of amount; or
• 2 Federal flood disaster relief payments (including loans and grants) for separate occurrences, each more than $1,000; or
• 3 Federal flood disaster relief payments (including loans and grants) for separate occurrences, regardless of amount; or
• 1 flood insurance claim payment and 1 Federal flood disaster relief payment (including loans and grants), each for separate losses and each more than $1,000. NOTE: Multiple losses at the same location within 10 days of each other are counted as 1 loss, with the payment amounts added together.

While any of the above qualifications may apply to homes which have flooded multiple times over the past 10 years, I have highlighted the one that will likely cause the most trouble for properties which only experienced one recent flooding from Hurricane Harvey. I have consulted FEMA concerning this and confirmed that although the flooding was a single event (and SHOULD be listed as such on the same date), FEMA may list a flood claim and a disaster assistance payment on different dates because the day you filed your flood claim and the day that you filed for FEMA disaster assistance were two separate days. Additionally, FEMA may list separate payments as different claims. If more than 10 days apart, FEMA will consider these “separate losses”.

Here is what you need to do. About a week after you receive your renewal, you will receive a claims manual that includes a sheet of paper that lists your loss history for your home even if you didn’t own the house. It is a small sheet of paper with small writing. Please review this paper. If it shows multiple dates for claims, call FEMA and get it straightened out THEN AND THERE so that you won’t lose your preferred policy rating. Understand that if you receive both flood payment and FEMA assistance over $1,000, you are at risk of this happening, and you must get it corrected to avoid losing your preferred rate!

When repairing flood damage, it is advisable to keep a record of the damages (depth of water, how long the water was in the house...) as well as the repairs (the amount of time which passed before you removed carpet, drywall, insulation...). Pictures are also helpful. This will assist you in filing a flood insurance claim (if you have flood insurance), and it will also serve as important documentation to include in your Seller's Disclosure if you ever need to sell your house. Flooding can be a major drawback for people looking at purchasing your home, but if you have documentation showing that all repairs were made correctly, this will go a long way to re-assure any potential buyer. Ray Wade Jay Anderson Ken Wommack Jerri Banker Comer