Hurricane Harvey and Protecting Your Home with Flood Insurance

Hurricane Harvey and Protecting Your Home with Flood Insurance

Hurricane Harvey.

Dan Polimino discusses Hurricane Harvey, how to contribute to relief efforts and the differences between insurance coverage and premiums. 

  • Check if your home is on a flood plain.
  • Fix issues immediately so that you don’t have to pay multiple deductibles.
  • Home insurance may cover water from the inside going out, but not from the outside coming in.
  • Read the specifics of your policy, trees falling from heavy rains or running water might not be covered and heavy rains causing the flood may not be covered either.

Full transcript.

00:00                              

Hello everyone and welcome to today’s edition of Aspen Colorado Dream House team I’m your host Dan Polimino. Coming to you from sunny Denver Colorado. And I actually. Feel bad saying about that I want to kick off today’s Ask the color of a dream house team talking about the floods in Texas. And again our hearts and our prayers are with the people of Texas just devastating what we’ve seen over the last several days over there we’ve got a lot of friends in Texas. We have some family out there. Keller Williams headquartered and started the company in Austin Texas not too far from Houston and Texas is filled with Keller Williams offices a lot in Houston. We’ve got colleagues that we do business with on a regular basis in Texas that are just being typically deeply hurt and affected by what’s going on. So I just want to say to our friends and our colleagues at Keller Williams and other real estate agencies around Texas and the people of Houston and the Gulf area that we’re thinking about you we’re praying for you but we’re again trying to do even more we all talked about as a team here at the Colorado Dream House Team about contributing to the relief effort in Texas and we’re going to do that.

01:22

So I would encourage you if you’re watching today find a charity find someone that you trust. Like the Salvation Army or another organization that you know where a lot of the money that you’re donating goes directly to the people in the relief effort. And I would encourage you to give just like we talked about it here is a staff to give a lot going on out there and heavy hearts. And we’re hoping that these waters will recede and things will start to get cleaned up but it’s going to be many many months of recovery and they’re going to need a lot of funds and a lot of aid in helping do that.

02:03

So our thoughts and prayers out to those people of Texas. With that said some of the questions today around Ask  the Colorado Dream House Team are about flooding. And I think it’s really appropriate to talk about this. And so we’re going to tackle some of that. If you’re new to the show welcome this show is about real estate. And again it doesn’t matter if you’re in Texas or you’re in Florida or you’re in Seattle a lot of the information that we give to you is all good database driven information comes from years of experience and thousands of transactions. So use our advice to help you navigate the real estate business.

02:40

You’re welcome to ask a question here on Facebook. Just leave it. We’ll use your question in a future show. You can call us at the number you see behind me on the screen or you can e-mail us and we’d love to hear from you. So with the market update this today was really talking about Texas and what’s going on down there and the relief efforts in fact if you’re familiar with Keller Williams As I said Keller was started in Austin Texas. There’s a branch of our company that is a 501c3 that’s called KW cares and kw cares is strictly to help out those in need when they need it. And I know that KW Cares is jumping right into it full bore. They’re packing trucks and they’re getting those trucks down to Houston Texas to help the people in need with food supplies and other needs. If you want to find out about how you contribute to KW Cares please contact us and we’ll be happy to give you some information about how you can donate there.  

03:43

Alright to today’s questions dear Colorado. Dreamhouse team. When do you recommend someone purchase flood insurance. OK great question. So if you’re in Colorado you know flood insurance is probably not on the top of your priority. I  mean you just don’t have a lot of floods here. I don’t say that they don’t happen they do happen in 2013. We had what seemed like weeks of torrential rain and there were floods and there were mudslides and there were all kinds of tragedy. But I would say check your map and see first if you are in a flood plain and these maps are provided by the county and the state and you can see where your house is located and whether or not it’s in a floodplain. Chances are your homeowner’s insurance already knows whether or not you’re in a flood plain but check and see if you’re in a flood plain. You probably don’t need it here in Colorado but if you live in Florida. Yeah. You bet. You’re definitely going to want flood insurance when you’re in Florida. And again it’s really depending on a lot about where you are in the country and where your house sits. And again if your house is in a particular flood plain no matter what the state is you’re going to want to talk with your insurance agent about flood insurance.

04:57

Dear Colorado dream house team. If your house is involved in a natural disaster like the one in Texas what happens with your mortgage to the bank nothing nothing happens with your mortgage to the bank you still owe that amount of money on the House. Now hopefully you had insurance on the House and the insurance, well let’s just say that the insurance adjuster comes in after the flood and totals out the house says it’s got to be demolished and rebuilt the insurance company gives you the money to rebuild the house and maintain payments. You have to maintain payments to the mortgage company along the way. Let’s say that it just has to be repaired. Again the insurance company gives you the money to make the necessary repairs. But again you have to maintain your payments to the bank. It doesn’t stop. OK.

05:49 

And that’s pretty much it as far as what happens with your mortgage. But it’s still in effect you still owe it and hopefully you’ve got insurance. Dear Colorado Dream House Team. What’s the difference between having a flood in your home and having a flood by rain. Well that’s going to kind of dovetail into this other flood insurance is very very tricky the typical insurance that you have right now on your home, in your home if a pipe bursts and floods your home OK then you’re covered. That’s water that’s happening from the inside going out floods like you see in Texas is water from the outside coming in. That is not covered under most standard homeowners policies. OK. Water coming in from the outside is not covered. That’s where you would purchase an additional insurance policy called flood insurance. Now again flood insurance is very tricky.

06:51

You have to read it carefully. You have to have an agent that you trust and you have to understand all of the particulars. For instance, just heavy rains like we had in 2013 with some water coming into the house may not constitute a flood and may not be covered under flood insurance. A tree falling over hitting your home and then your home floods as a result of the hole that’s in it from the rain may not be covered by flood insurance. How do you know it’s going to differ with state to state and insurance company to insurance company and you need to read the fine print or have somebody explain it to you in detail. All right. Flood insurance is very tricky. It can be expensive and it can be inexpensive. Flood insurance in the state of Colorado not that expensive flood insurance in the state of Florida.                       

07:45

Expensive. So again it depends on where you’re at. Take me, for instance, I had a sump pump in my basement which what for those of you don’t know what a sump pump is we’ve got a French drain around the house. The water goes down by the structure of the house fills the french drain goes into a sump pit and the pump pumps the water out of the house most standard homeowner’s insurance policies do not cover the sump pump. If it fails my sump pump failed and my basement flooded. Was I covered? I was not because sump pumps in sump pits are not part of a standard insurance policy. They consider that water from the outside coming in. I later found out after having to pay all of the repairs out of my pocket that I could have purchased it what they call a sump pump rider.

08:44

This is an additional insurance policy that goes under my homeowner’s insurance. Again not expensive but had I had that rider in place I would have been fully covered. So for those of you in Colorado if you have a sump pit and you have a sump pump you might want to check your policy and see if you’ve got a sump pump rider. It will save you thousands. Just take it from me. All right. That’s today’s show I probably gave you way more information than you ever wanted about flooding in insurance but I hope it was helpful. Hey don’t forget that right after Labor Day we’re going to start the second selling season. It’s going to get super busy around here we’re going to have one last great push to sell a bunch of homes right after Labor Day right to Thanksgiving.

09:29

And right now we’ve had a lot of people contacting us about getting their homes on the market. We’ve got about eight or nine homes coming on the market right after Labor Day. If you want to get in on that. You want to take a shot. Sell your home this fall. Please contact us at the Colorado Dreamhouse team. Let us meet with you. Explain the process and our 250 marketing guarantee. All right everybody have a great week. Thoughts and prayers out to the people of Texas.

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