Coastal residence have a unique risk of flooding and rising water which is not always a threat to other Texans and our Insurance faces changes in 2011.   Our FEMA managed National Flood Insurance Program is just as necessary today as it was 40 years ago. Here are some considerations:

•  There is not a private market that would be willing to provide this coverage.    Why you ask?  Well, simply put- people that are the most at risk to flood are the only consumers who purchase flood insurance.  What that means to us in the Texas Gulf Coast is that there is no large group paying for the losses of a few.  
• There is nothing stopping private insurance companies from offering flood insurance outside the National Flood Insurance Program to Texas Coastal Residence , but they have chosen not to.   Lawmakers have subsidized high risk property owners for years through the FEMA program, so to actually charge what it would cost to pay claims from massive flooding would be unaffordable.
• Currently the program is $20 billion dollars in debt  and the interest payment on the debt alone costs NFIP $900 million a year.

Reform is certainly needed for Flood Insurance for Texas Gulf Coast residence and others who live on coastlines in the US and I would expect this to be addressed in 2011 legislation.     I can understand why people in the mountains of Colorado would not want their government dollars paying for flood insurance subsidy’s to the wealth beach house owner.  The simple truth is that it’s not the wealthy who need this coverage, it’s refinery and ship channel workers.  It’s nurses and teachers and firefighters.  It’s the hard working people who live and support their families on the Texas Gulf Coast.  To find out more about flood insurance including the local areas which are high risk and current rates contact me at www.PaulaSmithInsurance.com or just call the office.

“Wish I would have thought of shopping for home insurance in Clear Lake Texas sooner.”   This is a repeated theme in the home buyer’s thoughts.   As people discover what a great community Clear Lake is to raise a family and want to move here, understanding your insurance risk is an important factor.  We are a coastal community.  Yes, we have the typical risk factors of fire and theft but windstorm and hail are high on the list of probability.   Thankfully there are several methods to manage the risk if you shop early and work with a local professional who understands the area.

First and foremost make sure you have a good roof.  If the roof holds up well  you are less likely to have expensive interior damage to your walls, flooring and contents.  Also, insurance companies have a discount for newer roofs.   While you are shopping for home insurance in Clear Lake TX also consider splitting the deductible.  Most policies allow you to choose a separate deductible for Wind and Hail; some even split it out three ways dividing wind and hail, Hurricane, and all other.   This allows you to take more of the risk for seasonal events like Hurricane while maintaining a lower risk for other perils.

Lastly, shop early for your insurance policy in Clear Lake TX and ask lots of questions.  There are multiple versions of policies on the market, some are the all risk policies and some are limited coverage but each has optional coverage’s that you can add depending on your needs.  For example if you have a large amount of jewelry or guns, you may want to consider additional coverage for those items.   Sewer back up is also coverage not commonly included but can be added as an option.   A good consumer web site for comparing different policy versions is the Office of Public Insurance Council.   This website will allow you to take two different Home Insurance shopping results in Clear Lake TX and compare them side by side.

It’s my pleasure to be a resource when you are shopping for Home Insurance in the Clear Lake Texas area.  Contact my office or visit my website at www.PaulaSmithInsurance.com


 League City Texas Home Owners Flood Insurance Tips learned after Hurricane Ike

League City Home Owners Flood Insurance Tips that I learned after experiencing Hurricane Ike claims may  help future Home Owners navigate the claims process faster.  Being a Licensed Insurance Agent in Texas for years does not mean that a person has or ever will experience a wave of water 12 feet high devastating the homes of our community.  We were blessed that each client of mine with a flooded home had flood insurance coverage. Even if you are a flood policy expert, the claims processing is a journey that can only be traveled.

 Some things I’ve learned are:

• If you don’t have a recent and current Elevation Certificate on your home, it’s worth the $300 to update that document every 20 years or so, especially after Hurricane Ike.
• Flood Insurance does not cover movement of the earth such as dirt.  Take care to assure that your piers and pilings are very secure. 
• Home Inventory the items in your Home BEFORE they are destroyed by Flood water.  Once the claim handler tells you to make a list of the items that were damaged, emotion and sensory overload sets in.
• Recoverable depreciation can be a significant part of the claim in Texas.  Make sure you are insured to the proper value on your home or you will not be able to recoup the depreciation that is held back. 

As emotional as the devastation of Hurricane Ike has been to the Texas Coastal Community, the reward is watching strong individuals build their lives back one repair at a time.

It’s my pleasure to be a resource for you on flood insurance questions.  Visit my website at www.PaulaSmithInsurance.com and request free home inventory software, my compliments.