Insurance 101 | Flood Insurance | Windstorm Insurance
Insurance Check List for Storm Season

What an exciting moment - when you find out that dream home is now going to be yours! Now it's time to take a moment to gather some information you will need to secure your insurance quotes for closing.

Everyone has an insurance agent they know and trust, so call him or her to secure quotes on your new Galveston home. Also, make at least one other call - to a local Galveston insurance agency. Many times, agents in other cities are not able to handle insurance on an island, or they may be uncomfortable securing windstorm and flood insurance for homes in "catastrophic" areas. Local agents have the expertise and tools to work with homes of all ages. Some of those tools include flood maps that were in existence at the time your new home was originally built and an understanding of just how to access windstorm insurance through the State Windstorm Association. Call both agents at the earliest possible moment. It could take time to get those coverages quoted and to complete the paperwork needed for the closing.

Be prepared to answer these questions for both agents:

•  What date was the home originally built, and since it was built, when were updates to the wiring, plumbing and roofing made?

•  Were the original construction and updates/additions certified?

•  Is there a ground level enclosure? What is it used for and what are the measurements?

•  Have a copy of the sellers flood elevation certificate and all windstorm certifications ever done for this home. (Have your Realtor get these documents.)

•  Does the seller have windstorm and flood insurance now? If not, why?

•  What types of losses or damage has the home had in the last three years?

•  Ask your insurance agent to prepare a replacement cost evaluation for your new home so that you will know that you are securing enough insurance to rebuild.

When you receive your quotes, make sure you understand which "perils" you are getting quotes for. Sometimes there can be a few hundred dollars difference between what appears to you as similar quotes when in reality there is a huge difference in the types of damages and losses the insurance will actually pay for. Some policies will pay for all types of losses to your home, except what is excluded. Others may be only a slightly smaller premium but will only pay if the loss is caused by one of these "perils" (Fire, Lightning, Explosion, Smoke, Riot, Civil Commotion, Vandalism, and if a Vehicle or Airplane hits the home) and no other perils are covered. Some policies can provide coverage for Sudden and Accidental Water Damage or a partial limit for these losses while others totally exclude it from the policy. Depending on where and how your home is quoted you may or may not have coverage for wind driven rain which is a large cause of loss in storms.

Be a smart consumer! Don't be afraid to ask questions until you are comfortable and know exactly what you want for your insurance needs.

NOTE: All information is subject to change. If you have questions, please contact Linda Y. Bassett, CIC, ACSR at Galveston Insurance Associates, 409-740-1251 / 800-364-6166 or Linda.bassett@gia-tx.com

For many of you, buying a home on an island in the Gulf of Mexico may open your eyes to some new types of insurance you have not had to work with before. Flood insurance is one of those special types of insurance that will be required by your mortgage lender.

Flood insurance is provided through insurance companies, but managed and backed by our Federal Government. Rates are established by federal government, but finding an agent with the experience to handle this coverage properly can be a challenge.  

Flood areas in Galveston, with few exceptions, will be considered a flood zone “A” or a flood zone “V”. Premiums and flood damage severity are both less in “A” zones.  Premiums and flood damage severity are both substantially more in “V” velocity zones.

Each home is unique, and individually rated.  Homes built, or 50% or more improved AFTER January 1, 1975 will require an elevation certificate for the insurance agent to provide a quote for flood insurance. An elevation certificate is a form listing the elevation measures of your home, including the grades of the land by your home. In some instances, the surveyor will also take note of the size and type of ground level enclosures that may be present. There is very limited, to no coverage, for any structures located below the living area of the structure. Homes with no ground level enclosures can qualify for less expensive rates.

Homes constructed BEFORE and not substantially improved after December 3, 1974 are considered “grandfathered.” That means there is no need to have an elevation certificate to have flood insurance rated. It also means that the rates and premiums are easier to calculate. There is also full flood coverage for ground floor enclosures, unlike homes built after this date.

Flood maps are maps showing the different “A” and “V” zones within a community. These maps are published by the FEMA, and they are revised from time to time. For your agent to do the very best job securing the lowest possible flood rates for you, there are two very important things to do:

• Research and know the date the home you are buying was built. 
• Ask your insurance agent if s/he will be able to use the older flood maps that were in place at the time the home was built.  If they are not able to do this, then find an agent that can. 

When flood maps change, elevation requirements as well as those “A” and “V” zones will change.  Using the maps that were available at the time your home was built will almost always result in the lowest possible premium for your flood insurance.  

Remember, flood insurance is flood insurance and paying more than you have to is a waste of money!

NOTE: All information is subject to change. If you have questions, please contact Linda Y. Bassett, CIC, ACSR at Galveston Insurance Associates, 409-740-1251 / 800-364-6166 or Linda.bassett@gia-tx.com

Even before you close on your new home, like many new homeowners you may have plans to make upgrades or maybe you need to make some repairs. Or perhaps you are buying a lot and plan to have your very own dream home built. Before you pick up that hammer (or like me, pick up that phone and call a contractor), make sure you understand your obligation to have new construction, repairs, additions and alterations inspected and certified to be windstorm compliant. Handling this correctly before you start that work will ensure you will be able to purchase windstorm and hail insurance, and it will be much easier for you to sell your home later.

All new construction and additions and most repairs and alterations must be inspected by a windstorm approved engineer AS THE WORK IS DONE!  Even the products you use must meet new windstorm-approved guidelines. If for some reason this inspection is not done as construction is underway, some engineers will do certification inspections after construction is complete, but it could require the removal of shingles and drywall to gain access to view the completed internal work.

Below are a few websites which will help you understand the process. Also, you can check to see if WPI-8 Windstorm Certificates have been issued for that home you are considering:

• New Construction
• General Information
• Approved Engineers
• WPI-8 Certificates
• Approved Products

REPAIRS NOT NEEDING CERTIFICATION

Some repairs do not have to be windstorm certified; however, let me stress that the list of repairs not requiring this certification is very small. Again, if a repair item is not on the list, or if a planned repair involves more work than what is on the list, plan to have those repairs certified.

(1) repairs to roofs less than 100 square feet (one square), (2) repairs or replacement of gutters, (3) replacement of decorative shutters, (4) repairs to breakaway walls, (5) fascia repairs, (6) repairs to porch and balcony railings, (7) repairs to stairways/steps and wheelchair ramps, (8) protective measures before a storm, (9) temporary repairs after a storm, (10) leveling and repairs to an existing slab on grade foundation, unless wall and/or foundation anchorage is altered or repaired, (11) fence repair, (12) painting, carpeting, and refinishing, (13) plumbing and electrical repairs, (14) repairs to slabs poured on the ground for patios (including slabs under homes on pilings), (15) repairs or replacement of soffits less than 24 inches in width, (16) repairs or replacement of non-structural interior fixtures, cabinets, partitions (non load bearing), surfaces, trims or equipment, (17) replacement of glass in windows or glass doors or replacement of exterior doors not involving the frames provided that the area is less than 10% of the surface area of the affected side (elevation) of the structure, and (18) replacement of exterior siding provided that the area is less than 10% of the surface area of the affected side (elevation) of the structure.

Know the rules before you buy or build and follow them through the course of ownership. That is the key to keeping your home insurable for the one type of insurance we all need - Windstorm and Hail coverage.

NOTE: All information is subject to change. If you have questions, please contact Linda Y. Bassett, CIC, ACSR at Galveston Insurance Associates, 409-740-1251 / 800-364-6166 or Linda.bassett@gia-tx.com

Now is the time to make any necessary changes on your insurance policies. Remember, depending on the type of coverage, any opportunity to change values or deductibles will be suspended if the Gulf of Mexico is not clear of tropical weather

Review each policy: Check the way your name and mailing address reads. This is the way a loss payment check will be sent to you, so make sure it is correct.

Check for correct mortgage company name: Do you have a mortgage? As frequently as loans are sold between mortgage companies, chances are you may need to correct the mortgage company name, mailing address and / or your loan number. This will save you several weeks of delay by not having to get loss checks reissued with the correct mortgagee’s name.

Check the values: If they have not been reviewed in a year or two, it is time. Due to changes in building codes and increases in the costs of material and labor, our cost to rebuild in Galveston has increased over the last several years. Most agents have computer programs that can help you calculate the correct replacement value to insure your home. Check on this now as some increases, like on federal flood insurance, will have a 30 day waiting period before the increase applies.

Take photographs of your property: It’s important to have photographs on hand in case you ever have to file a claim.

No one wants to have a loss to deal with, but a few moments of planning now and ease frustrations and delays if you do have damage to your home.

NOTE: All information is subject to change. If you have questions, please contact Linda Y. Bassett, CIC, ACSR at Galveston Insurance Associates, 409-740-1251 / 800-364-6166 or Linda.bassett@gia-tx.com