Flood Insurance coverage?????

Just saw on the Local news that a family from this area had moved to Texas and were hit by Hurricane Harvey. The news reported that "even though they had 'flood' insurance"....because this is a 100 year flood, their insurance will not cover them.

How does this happen? You pay for Flood coverage but your insurance company can still deny you ??????

Sounds like the TV delivered about 10% of the story there.

fbh44- "Sounds like the TV delivered about 10% of the story there."

I don't understand what you mean. Could you please explain???

Sure sounds like you do not have the whole story.

Flood insurance has very strict limits.
Such as it does not take effect for 30 days.
It also has amount limits that may not cover bigger houses 100%.
But if your coverage is in force you are covered from a flood.

Another tricky thing about flood insurance when you live near a coast.
Flood insurance covers rising water only.
In a hurricane it can be iffy if the water damage was caused by flooding water or storm surge.
Now you have two insurance companies fighting over who has to pay.

The big problem in Houston is going to be while these people live within miles of a coast most of they did not have flood insurance. And really why would you with a compassionate government like we have.

Agree with John, there is flooding and wind driven water. Can be difficult to get it settled right.

Another thing, you cant get flood insurance if there is a named storm in the gulf. The 30 day deal. So, waiting till the last minute is not an option.

We chose not to get for a house we have in New Iberia cause it is not in a flood plain, nor has it flooded since it was built in 1909, plus its on piers and sills. If water wants to get in that house, all the insurance in the world would not help.

First of all please send prayers to the victims of Harvey here in Texas. I have received 40.3 inches of rain in the last four days and still forcasting 10 additional. Harvey will hit within 20 miles from my home around 12 to 1:30 am.Personally I am high and dry but many friends and relitives homes are flooded. But explaining the inshurance here on the coast we have a windstorm policy,flood policy and a home owners policy.Some policies are differant from others. If you have water damage caused by a wind storm even if it caused a flood certian policies will not cover the flood damage.Rising water from rain or a stream rising will be covered by flood. Sometimes it comes to interpitation by the inshurance wich policy will cover.

It's tricky because, as you can see in Houston and such, the cash outlays from the companies could bankrupt them. I have State Farm. Normal household ins covers things like a storm blowing your roof off, or a tree crashes through a window and water entering. However "rising water" is a whole different ball game and then there is whether or not you are in a "flood plain". Then as John said you have the coastal area policy, and then the type of flood. I think I heard the Weather Channel host say that Houston was in the 500 year flood. Probably all bets are off with that.

On autos, that is probably comprehensive coverage. Haven't read my policy about rising water such as a flood on that. Course if hail hits your window and breaks the glass and the car fills with water you have no problem with that being covered. You can bet with the potential liability, today I read that in today's dollars it'll top Katrina which was 160 Billion in damage.....totals for all things probably, the insurance companies are going to be squirming.

With all the losses we citizens have experienced I noticed State Farm made a profit last year only because their investments were profitable, so they said. They did play games with the rates this time however. I got a notice that they now use your credit report to assist in determining your payment. Seems if you have lousy credit you are a lousy driver......yeah right. Just a gimmic to up the rates. I have great credit, no wrecks and no tickets but I didn't get a discount. Rate went up.

Texasmark1- Thanks for taking the time to explain it.

Something wrong with that story. I have Federal flood insurance here in northern Michigan because I am on a river and just below a dam. I am certainly covered if we get flooded out - period. No matter if a " 100 year flood" or a dam break. No flood insurance here available from any private company I know of. Just the Federal insurance.

Sounds like some misinformation. Flood insurance is generally required by a mortgage lender for someone buying or building in a area that could possibly flood. FEMA and Congress have adopted guidelines and regulations thru the National Flood Insurance Program. Communities have to participate in the program for a person to have flood insurance thru FIMA program. If this person does have coverage and is denied then they can file a appeal with FEMA and they will handle the claim at no cost to the policy holder.
/www.fema.gov/national-flood-insurance-program

You know with all this, insurance and such, I thankfully am not in an area that will I will have to claim, but I GUARANTEE my rates will go up.

> The news reported that "even though they had 'flood' insurance"....because this is a 100 year flood, their insurance will not cover them.

Given that the storm isn't even finished, it would seem a bit premature to speculate on what insurance will and will not cover. But there are fairly strict limits to flood insurance coverage, very often not enough to cover the replacement value of structures.

I'd say many of the folks who think they have "flood" insurance aren't covered at all. If your mortgage company doesn't require flood insurance, and you decide you don't need it (because, for instance, your house is above the 100 year flood plain), if your house is flooded you can't expect your homeowner's insurance to cover the loss.

"compassionate government".....actually, you may be surprised, there are still some people that don't rely on the nanny state for all the whims in life.

OK in the first place a policy is actually a contract. That contract spells out each parties responsibilities. You, the insured has to make payment either in full or by payments on time. You also have to do certain things that reduce risk. They, the company, have to pay if you have a loss and met all of your responsibilities. Some homeowners policies go so far that the company will pay some if not all of the cost of reducing risk like tree removal of a tree that threatens a property. So if you say buy a home owners policy then add wood heat to that home you have increased the risk. You are required by the CONTRACT to inform the company. If you don't then have a fire caused by that wood heat they can refuse to pay because you did not meet the requirements of the CONTRACT.

When I was an adjuster no insurance company provided flood insurance themselves. It was all through the federal flood insurance program. They may have sold the policy but they were acting as the agent of the government. That is where some people get the idea that their company provides flood insurance.

Events like those currently in TX can cause real problems for insurance companies and cause them to lose money. With the rates we pay we have a hard time grasping that but most insurance companies are set up to run about a 5% net profit margin. A super storm, wild fire, earth quake or flood can wipe that 5% margin off the books real fast.

I'm sorry but the folks in TX are soon going to find out about their companies. If they never looked at the coverage provided by the mortgage company they may find themselves in trouble because most often they go with the cheapest provider. Others who actually bought their own insurance and bought based on price may be in the same boat. The cheapest companies are the ones most likely to try to deny claims and refuse to pay. You should not buy insurance based on price "because you have to have it". You should buy it with it in mind that you may indeed one day need it!

Rick