Mortgage Research Network Podcast

Welcome to the Mortgage Research Network Podcast. Just a note that this podcast audio is AI-generated, but the article on which it's based was produced by people. Content is also reviewed for accuracy. And your hosts, Tim and Craig, are real people. Without further ado, let's get into today's topic.
I'm your host, Tim Lucas, editor of MortgageResearch.com and a former mortgage professional, and with me is Craig Berry, a mortgage originator with 25 years experience.
Hi everyone. Thanks for joining us again.
It seems almost too soon to be talking about anything but the devestating loss of life in the Texas floods. Our thoughts are with the families who experienced loss. That being said, it did spur an issue that's important to homeowners, flood insurance. in Dallas, a major city prone to devastating floods, less than 1% of homeowners have flood insurance, says Neptune Research Group.
That really puts into perspective how vulnerable we are, no matter where we live. Not just in texas.
Yes, the risk to life and property seems to be growing. But flood insurance is still the exception, not the rule, in many flood prone areas. across Texas, only 7% of homeowners have flood coverage.
Hmm... and I understand regular homeowners' insurance doesn't typically cover flood damage, right?
Exactly right, and here's where it gets really concerning. In Harris County alone, which accounts for nearly half of all flood insurance payouts in Texas, more than 78% of homes still have no coverage. We're talking about an area with a well-documented history of flooding.
Well that's EXACTLY why we need to talk about this. What happened in Dallas-Fort Worth right after the Hill Country tragedy really drives this home - their wettest hour in 69 years, with over 3 inches of rain in just sixty minutes.
And the consequences were immediate. nearly 200 water rescues, countless disabled vehicles. But here's what really gets me. since 2005, more than half of all flood insurance claims in Texas have occurred outside FEMA designated high-risk zones.
So essentially, the maps we're using to assess flood risk might be dangerously outdated?
Precisely. And looking ahead, Texas is projected to have over 2.1 million properties facing flood exposure in the next 30 years. More than 200,000 of those are expected to flood "with near certainty" according to Neptune Research Group.
You know, I think many people assume flood insurance must be prohibitively expensive, but what are we actually looking at in terms of cost?
Well, the average is about $75 monthly or $899 annually. But here's the perspective. feemuh says just one inch of floodwater can cause up to $25,000 in damage. One inch! And when you're talking about several feet of water, you're looking at potentially catastrophic losses.
That really puts that monthly premium in perspective, especially considering that about 37% of policies nationwide cost under $1,000 annually.
Right, and while shopping around makes sense, you need to be careful. Private insurers often offer different rates than the National Flood Insurance Program. make sure you're getting comparable coverage. Some policies might have exclusions that could leave you vulnerable.
These so-called "once-in-a-century" rain events seem to be happening with alarming frequency now.
That's exactly right, and our infrastructure wasn't designed for these new weather patterns. And here's something crucial people often forget: flood insurance typically has a 30-day waiting period according to FEMA.
Oh, so you can't just wait until you see the storm clouds gathering...
No. by then it's far too late. And while that monthly premium might feel like a burden when you're juggling other expenses, it's nothing compared to facing flood damage without coverage. Think about it. if you're living paycheck to paycheck, how would you handle even $25,000 in repairs?
The recent events in Texas really serve as a wake-up call, no matter where you live.
They absolutely do. And while we can't prevent natural disasters, we can certainly do more to protect ourselves from their financial impact. The time to act is now, before the next storm hits, before the next flash flood, before we're wishing we'd done things differently.
That's about all the time we have for this topic, but we go into even more detail on the site. To learn more, go to Mortgage research.com and type flood insurance in the search bar at the top of the homepage. We'll see you next time on the Mortgage Research Network Podcast.