Reviewing Your Insurance Policy: The Time Is Now
As hurricane season approaches, homeowners must reassess their insurance policy. In the Coastal Bend area of Texas, many already feel the impact of rising insurance costs, with some rates even doubling. Veteran insurance expert Ed Cantu, with 39 years of experience, emphasizes the importance of understanding these changes. “Being along the Texas Coast impacts the cost of insurance,” he notes, highlighting coastal residents’ specific challenges.
Understanding the Spike in Insurance Policy Costs
Homeowners insurance rates in Texas are currently averaging $4,142 annually, a figure that is $1,361 above the national average, according to Insurance.com. This significant increase is attributed mainly to the windstorm insurance component, which many residents must know. Michele Glick, a Coastal Bend resident, illustrates this impact vividly. Her costs soared from $2,100 to nearly double that figure when including Texas windstorm insurance. “The standard homeowners [policy] we’re paying $1,100 for, and for the TWIA, we are paying just over $2,400… almost $2,500, so that would be about $3,600 now,” she explains.
The Crucial Need for Comprehensive Coverage
Cantu stresses the importance of securing a home insurance policy despite the steep costs. He points out that a home is often the most significant investment one will make. “That’s a major investment that you have, probably the most expensive or the highest-value investment you purchase in your entire life,” he states. The potential loss from a single incident, be it a fire or hurricane, can be devastating, hence the need for adequate protection.
Making Sacrifices for Safety
Residents like Glick, who have weathered several hurricanes, understand the trade-offs required to afford insurance. She advises making budget cuts elsewhere to ensure coverage, especially anticipating an active hurricane season. “Whatever you can cut, you should probably cut,” Glick suggests, underscoring the belief in the forecasts and the necessity of windstorm insurance.
Broadening Insurance Understanding
Cantu also emphasizes the importance of knowing what your insurance policy covers. He strongly recommends purchasing flood insurance in addition to windstorm coverage. “We highly suggest that you buy flood insurance too because although you have windstorm insurance when a hurricane hits, the heavy rains and the tidal surges that the hurricane causes are not covered in the windstorm portion of the policy; that has to be covered on a separate flood policy.”
Act Now Before It’s Too Late
With hurricane season starting on June 1st, Cantu urges everyone to review their policies. Understanding and adjusting your insurance before disaster strikes is not just prudent—it’s essential.