Cost of Hurricane Insurance in Texas
A hurricane insurance policy is typically a combination of flood and windstorm insurance. So how much does hurricane insurance cost? The cost of hurricane insurance in Texas can vary depending on the insurance company. It is not always a fixed amount. The insurance company will determine the cost of the coverage based on several factors, such as hurricane risk, home value, deductible amount, need coverage, and other related factors. Homeowners can expect to pay an average $3,200 premium annually. In addition to your homeowners premium, you can expect to pay the following for your hurricane insurance Texas coverage:
Flood insurance: $700 per year
Windstorm insurance: $1,700 per year
The combination of the flood and windstorm means the average yearly cost of hurricane coverage in Texas is $2,400 plus your homeowner of $3,200 ($5,600 annually for homeowners and hurricane coverage) for a $300,000 coverage amount. Storm insurance may be cheaper for a renter than a homeowner. The average cost of a renters insurance policy is $190 a year, and you can expect to pay:
Flood insurance - $90 per year
Windstorm insurance- $180 per year
As a renter, you can expect to pay $270 for your hurricane insurance coverage and $190 for your renters insurance ($460 annually including renters insurance coverage) for an $80,000 coverage amount.
How Much Should I Pay for Hurricane Insurance in Texas?
How much you should pay for hurricane insurance in Texas depends on several factors, including:
Type of building
Home value
Whether you are purchasing flood and windstorm insurance coverages from a private company or a government-run program
The amount of coverage you need
The location of the building
Whether your building is for residential or commercial purposes
What Affects the Cost of Hurricane Insurance
In Texas, the cost of a hurricane insurance policy can vary depending on several factors. Understanding these factors will allow you to make an informed decision regarding choosing the best insurance coverage for your home or business. The factors that affect how much you pay for hurricane insurance depend on the following:
Hurricane risk: If your building is located in a region with a high risk of getting damaged by a hurricane, the insured value will be higher, which automatically means a high premium. You can determine this area's hurricane risk by looking at the Map Service Center provided by the Federal Emergency Management Agency and the TWIA catastrophe map.
Deductible: The cost of comprehensive hurricane insurance can vary from $300 to $20,000 per year, depending on the type of building and the area. A separate deductible for hurricane damage in Texas is typically 1% to 5%. For instance, if your home is insured for $200,000 and gets damaged in a hurricane, the deductible will be around $2,000, 1% of the insured value. Meanwhile, it can be up to $10,000, 5% of the insured value. The higher the deductible, the lower the premium you will pay, while the lower the deductible, the higher the premium you will pay.
Building type and building materials: When considering the cost of your hurricane insurance, aside from the building materials used, another factor is the likelihood of a home being damaged by a hurricane in its condition. Homes built with newer building materials are more likely to withstand high winds than old houses. Likewise, mitigating the hurricane risk of your building by installing storm shutters and secondary water protection can lower insurance costs.
Age of building: An older home is more expensive to insure due to the lack of new building improvements that could help prevent it from being damaged by strong winds or storm surges that cause floods.
Rebuilding Value: The rebuild value of your property is the actual cost of replacing damaged or destroyed property. The actual financial value of your property is taken into account before your hurricane insurance policy becomes active.
Claims history: Your claims history is used by insurance companies to determine if they should sell you a policy and how much they should charge you. If you have many claims on your history, you can expect a higher premium. Most insurance firms get a report about their customers' claims history from the Comprehensive Loss Underwriting Exchange (CLUE).
Speak to a licensed Texas Property and Casualty Insurance agent to help you determine how much it will cost to insure your property against hurricane damages.
Can you Lower the Cost of Hurricane Insurance in Texas
Hurricane insurance is typically a package of policies made up of flood insurance and windstorm insurance. To lower the cost of your hurricane insurance, you can consider mitigating the risks of flood and windstorms, which are the major aftermaths of hurricanes.
Flood insurance:
Base flood elevation: An annual surcharge will be added to your premium if your home's utilities are located below the base flood elevation. You can consider elevating your building’s electrical panels, water heaters, and other utilities so they are less likely to get damaged during a flood.
Confirm whether there are flood openings: The National Flood Insurance Program requires all new construction and basement renovations to have flood openings in high-risk flood areas. All enclosed areas below the lowest floor must have at least two flood openings. Windows, doors, and garage doors are not required to have flood openings.
Elevation of building structure: If you live in a flood-prone area, you could save hundreds of dollars annually by elevating your home's structure above the ground so that you are above your community's flood-free zone. Otherwise, you risk different debris sailing into your home due to the flood. You can use the FEMA’s flood map to check your community flood zone.
Relocating outside flood-prone areas: You can consider relocating your home outside the flood risk areas to lower your hurricane insurance costs. This method is costly, but it can reduce your hurricane insurance costs.
Windstorm insurance
The most common threat that people have to deal with during a hurricane is high winds, reaching up to 20 feet high. Waves can also push many miles inland. If you live in Texas, you will need to take the necessary steps to minimize windstorm-related hurricane damage to your building by:
Removing loose fence boards and repairing damaged roof shingles,
Ensuring that your car is parked away from power lines and other objects that could get blown around,
Removing loose branches which poses serious hazard and keeping your trees and shrubs in good condition,
Strengthening your home's weak spots that can get seriously damaged during a windstorm, including the roof, garage, windows, and doors. Having these areas checked regularly can help prevent further damage.
Mitigating your windstorm risks will make your property more secure, lowering your overall risk and the insurance premium. Wind mitigation is building a house that can withstand strong winds. It involves adding features and techniques to help it resist damage. Wind mitigation measures include:
Using storm shutters to prevent windows from breaking when debris gets blown away by the wind,
Using high-impact glass or a shatter-resistant film to protect windows from getting broken,
Reinforcing garage doors with girts and wheel tracks. Double-entry garage doors can also be reinforced with a heavy-duty deadbolt,
Re-adhering any loose shingles in your property,
Using impact-resistant materials when installing a roof,
Using a waterproof sealant to fix gaps or holes in your building surface.
If you consider getting a new home, it is important to have a wind mitigation inspection done. A licensed building inspector in Texas performs a wind mitigation inspection or a contractor specializing in this field. The licensed contractor will come to your home to check its structural integrity and determine whether it can withstand strong winds. If the building cannot withstand strong winds, you will be advised on steps to mitigate your building’s hurricane risks.
In addition to mitigating your wind and flood risks, you may consider doing the following to lower costs:
Compare prices: Although different private insurance companies may offer the same windstorm and flood coverage plan, their prices vary. To get the best possible insurance quotes, contact a licensed insurance agent in Texas to help you shop around and compare prices from various insurance companies. It is important to consider various factors when choosing an insurance policy and not just their prices; your insurance agent can help with this.
Increase deductibles: You can consider increasing the deductible on your windstorm and flood insurance policies; doing this will reduce your insurance cost. However, note that increasing your deductibles means you will have to cover all or most of the costs of hurricane damage repairs and replacements out of pocket.
Look out for discounts: Having features like reinforced garage doors, shatter-resistant glass, and storm shutters can make you eligible for discounts from your insurance provider. When shopping for windstorm and flood insurance, look out for these discounts.
Consult with your Texas Property and Casualty Insurance agent to discuss ways to lower your windstorm and flood insurance premiums while still enjoying full protection against hurricane damages.
How to Save on Hurricane Insurance in Texas?
You can save on your hurricane insurance by raising your home above the base flood elevation, installing hurricane openings, and filling your basements. You can also get discounts on your flood insurance if your community is part of the Community Rating System. This rating system collaborates with FEMA and various local government agencies that aim to reduce the risk of hurricane damage. You can also purchase windstorm insurance from a private insurance provider because it is cheaper. However, it may be challenging to qualify for private insurance. Nonetheless, you should consider applying to a private insurance company before applying to TWIA.
If you live in an area with high hurricane risk, you may consider choosing a higher deductible. However, this option will also require you to pay a large portion of the cost of repairs and rebuilding.
The best way to save on hurricane insurance in Texas is to talk to your insurance agent. Your agent will help you examine your hurricane risk and compare multiple quotes to find the most suitable for your insurance needs. The agent can also help you source for discounts and advise you on how to mitigate your susceptibility to hurricane risk.
Can you Negotiate the Price of Hurricane Insurance?
Although you can't negotiate the cost of business liability insurance, you can adjust the coverage and deductibles necessary to protect your home or commercial structure to fit your cost needs. Speak to a licensed insurance agent in Texas to help you find the most suitable coverages for your specific hurricane insurance needs.
What is the Best Way to Save on Hurricane Insurance in Texas?
The most effective way to reduce the cost of hurricane insurance is to speak with a licensed insurance agent. The agent can review the details of several insurance companies and then come up with a customized policy that fits your needs.
Although it's common for people to think of insurance as a single type, hurricane insurance can be complex because it comprises two different types of insurance coverages, including flood and windstorm insurance policies. This is why you should consult a licensed agent to help you find the right coverages that will suit your specific needs.
What is the Average Cost of Hurricane Insurance in Texas?
The average cost of hurricane insurance in Texas is:
Flood insurance: $700 per year
Windstorm insurance: $1,700 per year
The average cost spent on hurricane insurance in Texas is around $2,400 for a $300,000 homeowners insurance coverage. If you are looking to get something considerably cheaper, you can look out for discounts from insurance providers. For instance, you can get a federal flood policy for less than $500 a year, especially if you live outside a high-risk flood zone.
How Much Hurricane Insurance Coverage Do I Need?
The amount of windstorm and flood insurance coverage you need to have to protect yourself against hurricane damages depends on the actual value of your building and its content. If your homeowners insurance provides dwelling coverage for $600,000, you will need to pay a higher premium for these policies to be fully secured. Meanwhile, if your property is valued at $100,000, you can pay a lower premium. Also, the extent of the coverage will be considered. For instance, flood insurance policies cover building and content, and if you decide to purchase both coverages, you can expect to pay more premium.
In the end, many cities and towns in Texas are prone to be hit by hurricanes. Even if you live in a low-risk city or town like Huntsville, and Rockwall, you may still benefit from hurricane insurance to protect your property and belongings. The amount of hurricane insurance coverage you need is determined by the amount sufficient to restore your building to its position before the hurricane.
You should speak to a state-licensed insurance agent regarding your disaster insurance needs to help you find the most suitable coverage that will cover your needs.
How Much is Hurricane Insurance Premium in Texas?
The amount you are charged for Hurricane insurance premium is primarily determined by:
Where your home is located and whether it is located in a hurricane-prone area.
The total insurable value of the property
Your specific insurance needs and how much coverage you need
Deductible amount
Cities along the Texas coast are prone to get hit by powerful hurricanes. Houston and Galveston have experienced some of the most devastating damage from storms in the state over the last century. Hence, for residential properties, you can expect to pay an average of $2,400 for a $300,000 coverage amount in Galveston. Meanwhile, you can expect to pay as high as $2,600 for a $400,000 coverage amount for a commercial property.
What Discounts are Available for Hurricane Insurance?
You can get the following discounts when purchasing your hurricane insurance in Texas:
Safety discounts: An insurance company may offer a safety discount if it has seen that the insured has taken the necessary steps to manage its liability risks. For instance, when you install storm shutters, high-impact glass, or a shatter-resistant film to prevent windows from breaking when debris gets blown away by the wind.
Bundling discounts: You can usually get a discount if you buy your windstorm and flood insurance policies from the same company.
Loyalty discounts: A loyalty discount is an insurance deal that an insurance company gives to its customers to encourage them to stay with the company.
If you plan to purchase a hurricane insurance policy, speak to a proficient licensed insurance agent.
