Currently in contract on a SFH in La Porte, TX (Houston area) and trying to figure out the best insurance option. One company is quoting me about $1,000/year without named storm coverage or $2,000/year with. Named Storm Damage Deductible is $10,000 (which applies to wind or hail damage for a non-named storm as well) and $3,000 for all other perils. Other company quoted a $2,200 premium with $3,000 (2%) for non-named storm or $4,500 (3%) for named storm deductibles.
Advice or recommendations from folks familiar with these storm prone areas?
I live in Houston and my premium is $1200. That's up from $850 just a couple of years ago.
My wind/hail deductible is 1%/$1300 and my hurricane deductible is 2%/$2600.
It sounds like the second option is the more reasonable one in my opinion.
@Emily Powell , is your lender requiring you to carry windstorm insurance? Homes in coastal counties are required to carry windstorm insurance, but since La Porte is in Harris County, I wouldn't think you would have to carry it. Remember that to be eligible, the home will need to pass a windstorm inspection. You might ask if the previous owners still have the windstorm certificate or if they can give you any info on their coverage. Maybe their insurance company would have it on file, or maybe TWIA (Texas Windstorm Insurance Association) would have it.
Windstorm insurance premiums are so high, and the deductibles are so high, that you might consider not carrying it and self-insuring. My husband and I are looking for our first rental property, and we've decided not to look in coastal counties because windstorm insurance would be such a cash flow killer.
Somewhat related, flood insurance is required in many parts of Harris County that can also be a cash flow killer if the property is in a 100 year flood plain and floodways. Make sure to check harriscountyfemt.org.
@Sebastian Gast , I recently asked about this on another thread. One respondent said he was only paying $211/yr for flood insurance, but I've heard that it's really high. I wondered if you have checked into premiums. For now, we are eliminating homes in the 100 yr floodplain from consideration.
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