The flooding in Houston, Texas from Hurricane Harvey is some of the worst flooding in American history. People lost their homes, cars, places of businesses, etc. to serious water damage. Some are luckier than others when it comes to insurance coverage. One piece of good news is that the US Flood Insurance Program is doing its part. The program will be putting $11 billion towards fixing the flood damage in Houston. With this, the state of Texas can begin rebuilding its most populated city.
The National Flood Insurance Program was created after Hurricane Katrina. Government officials decided that such destruction required assistance on a federal level. Private flood insurers were not able to handle the volume of claims and the incredible cost of covered losses. So, the US Flood Insurance Program was born. Now, with all the water damage caused by Hurricane Harvey, it seems that the federal government made the right choice by getting involved. The $11 billion will go toward fixing houses, garages, automobiles, storefronts, restaurants, hotels, car dealerships, and any other covered properties with severe water damage.
Unfortunately, a large amount of properties damaged by the flood will see no relief from that $11 billion. The program only applies to those with flood insurance coverage. So, those with only a standard home insurance policy will be out of luck, and forced to pay for their own damages themselves. Many homeowners make the mistake of thinking that their home insurance covers flooding, but it does not. Certain natural disasters, including flooding, require their own separate insurance policy. As far as automobiles go, those with comprehensive coverage will be covered. Comprehensive coverage applies to damage from a variety of natural disasters, including flooding.
In an attempt to get things moving quicker and stretch the dollar as far as they can, the national flood insurance program has adjustors looking into each individual claim. The adjustors will make offers to those with flood insurance that is lower than promised to them on their policies. For example, if your flood insurance policy says it will pay up $1 million in damages, the adjustors may ask you if you are OK with accepting a $500,000 payout. If the policyholder accepts the smaller coverage, they will be paid immediately. However, if they are not satisfied with the payout, then they can wait to get the full amount. But, given the high number of claims, that could take a while.