The 2022 Hurricane Season begins June 1, and this is National Hurricane Preparedness Week - a good time to take stock of how ready you are for a major weather event.
Among the important things on your checklist should be insurance. You should have a flood policy no matter where you live in the Houston area, and it might be good to review your homeowner's policy as well.
The recent spike in home prices across Texas may mean your home insurance coverage is too low, according to insurance researcher Quote Wizard. Home insurance will cover your structure for nearly any severe storm, but your existing policy may not provide enough protection anymore. For example, a $300,000 policy in 2020 probably won't cover replacing your home in 2022 due to inflation and the increasing cost of reconstruction.
Over the past year, the average home insurance price in Texas has increased by 6%. In fact, Texas is second only to Oklahoma in the cost of home insurance with an average annual premium of $3,600.
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Also, most home insurance will not cover flooding caused by a natural disaster. You have to have specific flood insurance for that. Insurance experts say both homeowners and renters in Houston should buy flood insurance, even if they have not flooded before. Data shows 50% of flood claims come from people that live in low-risk zones.
And you should act now - flood insurance has a 30-day waiting period before it goes into effect.
The average annual premium for flood insurance in Harris County today is $548. The Federal Emergency Management Agency determines how much people are charged for policies, which are government-backed but privately-administered. Nearly all insurance agencies sell the policies. This year, almost 90% of flood policyholders in Texas got a price increase based on FEMA's overhauled of risk predictions. Texas has some of the most flood-endangered cities in the nation. Houston has 75,000 properties with substantial risk, the fourth-most in the country.