Insurance Mistakes to Avoid This Hurricane Season

​Here in Texas a lot of people we talk to rely on wishful thinking when it comes to our odds of getting a hurricane this year. That’s not how we think there at the Brad Spurgeon Insurance Agency. We want our clients to be protected no matter what this hurricane season because you can’t rely on crossing your fingers when your entire financial future is at stake. Here are some mistakes that buyers often make when it comes to insurance than can be big mistakes if we have a major hurricane this season.

If you're lucky not to have a mortgage, you might be able to not have insurance legally, but is saving a few dollars worth the risk of losing your house? Have you set aside enough money so you can rebuild your whole home? Is it better to spend that money somewhere else? If you have any hesitation, ask yourself if you can afford to replace all your possessions with just what you have in the bank right now. If you can't, get insurance. Do this so you can have a peaceful sleep when you see news about a hurricane heading through the Gulf.

Homeowners policies often give homeowners many options. Owners may choose to exclude certain coverages and accept that they will pay for the losses. Not including Contents and Windstorm coverage may save you money upfront. But hurricanes without windstorm damage are not very common.

Building codes improve while homes age. There are many changes in the residential building codes in the past 15 years. There is a big difference in a built home's structural integrity and the one that is more than 15 years old. Texas has very strict building codes that are often changing. It is a good thing, but you might have a problem when your home gets destroyed or damaged. The cost of reconstruction will go up when you rebuild to current building codes. Building Law or Ordinance coverage can pay for the added expense.

Texas insurers offer a percentage hurricane deductible. It has a basis of the insured value of the home. Homeowners have options to choose the percentage of the hurricane deductible on their policy. High deductibles can lower insurance costs. But, it may also mean that there are higher out-of-pocket costs after the storm. Homeowners with a house insured for $200,000 may need to contribute $20,000 to rebuild their home with a 10% deductible. Lower the hurricane deductible to 2% may cut that amount to $4,000.

The standard Homeowners insurance policy may not cover flood damage. Here in South Texas we are at risk for flooding just about everywhere. Some areas have a more dangerous flood risk compared to others. Hurricanes can bring hard rain for extended periods. You might even consider buying additional flood insurance from a private insurance company. They have excess flood insurance that gives more coverage compared to the NFIP.

At the Brad Spurgeon Insurance Agency Inc., we take pride in making sure our clients are well protected from hurricanes even if they prefer to hope for the best. To learn more about how we can help you with your coverage this season please contact our agency at (409) 945-4746 or Click Here to request a free quote.