Flood insurance in Houston

[Brian Burke]

I've heard in other forums from single family investors in Houston get flood insurance regardless of whether the property is within or outside the 500 year flood plane. I received a quote today for flood insurance on a 2100 sq. ft. SFR in Humble for $2000 annually, which is in addition to any other hazard insurance or liability coverage. Insurance at this price kills the potential deal and I suspect it would many deals.

Two questions:

1. Have you noticed flood insurance is this expensive?

2. Do you carry flood insurance on a long term rental regardless of where it is in Houston?

Thanks.