Purchasing Homeowners Insurance in Clear Lake or anywhere along the Texas Bay Area has become a challenge for many residences post Hurricane Ike. Either it’s difficult to find a company who will take your risk in this area or the price has increases substantially.
Part of the reason is reflected in two changes to the way that insurance companies price homeowners insurance.
- One is the age of the roof. It’s very important now that the roof is new and in good condition. Some insurers will refuse coverage to older roofs; most insures provide big discounts for new roofs. The theory is that if the roof is strong and stays on the home, the potential loss is much less to include no interior or contents damage.
- The other major change is distance to the coastline, the coastline being defined by most carriers as the closest large body of water which is Galveston Bay in our case.
Also while shopping, beware of two different types of policies on the market, the HOA and the HOB.
- The HOA policies are named perils. That means the policy actually lists for you the items they cover. It will say ‘We cover Fire, Lighting, Windstorm, Hurricane, and Hail…etc.” If your type of homeowner’s loss is not included on the list of perils, the claim will not be covered. This is also called the Limited Benefit policy.
- The HOB policy is considered an all risk coverage. Instead of naming the perils they DO insure, they name the exclusions. For Example “We Do Not cover flooding, foundation movement, termites…etc.” That makes the HOB or All Risk coverage the better policy.
Bottom line – while you are researching your insurance options, be sure to know whether the coverage you are proposed is the Named Peril or All Risk policy.
Additionally, there are lots of options that can be added to the standard policy which you may or may not want. Glass Coverage, Mold Coverage and Sewer Back up just to name a few. These optional coverages may or may not be important to you.
At Paula Smith Insurance, it’s our pleasure to be a resource for you while you are investigating the Homeowners Insurance Market in the Clear Lake area and the best product to protect your most valuable asset, your home. Feel free to contact us at paula@leaguecityinsuranceagent.com or (281) 488-8880 with any questions or to get a risk-free no-obligation quote.
We also can quote flood and windstorm, auto or motorcycle coverage, recreational vehicles such as your boat or rv, as well as life and business insurance. We’d love to help you save money on all of your insurance policies.