More Houston homeowners are passing on flood insurance because it’s becoming more expensive to insure homes in the region.
The Federal Emergency Management Agency is no longer selling a yearly $500 insurance policy through the National Flood Insurance Program to homeowners who live outside of flood zones because the program now underwrites policies to accurately reflect a property’s actual flood risk instead of just relying on a home’s elevation within a flood zone.
The higher flood insurance policy prices are squeezing out Greater Houston homeowners who can least afford the new rates and recover in the aftermath of a potential storm or hurricane, primarily the elderly and people on fixed incomes.
According to a Houston Chronicle report, there were 45,000 fewer buildings in Greater Houston carrying flood insurance, this July than in the month before the change was enacted.
Per FEMA data one out of every 12 buildings once insured by FEMA against flooding in Houston will now have to find another way to recover from a significant storm. One out of every three policies dropped nationwide was in the Houston area, the Chronicle noted.
Houston’s reputation as a flood-prone region may also be hurting the city’s macroeconomic prospects. Major corporations looking to relocate to the Lone Star State consider Austin or Dallas first because of the Bayou City’s flood risks, sources have told TRD.
It also doesn’t help that state officials have in the past not given federal disaster funds to parts of Texas that need it the most.
Although it’s clear to Houston real estate developers they need to provide flood mitigation on their projects.
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