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Insuring Coastal Property
Insuring coastal property can be complicated. To be fully protected against all types of hazards, several types of insurance might be required. It is important to know all the risks your property is exposed to and engage a knowledgeable insurance agent to help you purchase the appropriate policies.
The three types of insurance policies commonly needed in Galveston are: • Hazard (Homeowners) • Flood • Windstorm Homeowners Insurance (also called Hazard or Peril Insurance): A multiple lines insurancepolicy that combines various protections, including losses occurring to the building, its contents, loss of other personal possessions of the owner, as well as liability insurance.
The cost of homeowners insurance depends on what it would cost to replace the building and which additional items are insured as riders on the policy. In coastal areas, homeowners' policies typically exclude flood and wind perils, therefore separate policies must be purchased for those types of insurance.
Flood Insurance: Standard homeowners insurance does not cover flooding; you must have a separate policy to insure for floods associated with hurricanes, tropical storms, heavy rains and other types of weather conditions. The National Flood Insurance Program (NFIP), created by Congress in 1968, offers flood insurance to homeowners, renters, and business owners if their community participates in the NFIP. (Galveston does participate in the program.)Click here to read more about the National Flood Insurance Program.
Windstorm Insurance:The Texas Windstorm Insurance Association (TWIA) was originally created by state mandate in 1971 (known then as the Texas Catastrophe Property Insurance Association) to provide basic wind and hail insurance to property owners otherwise unable to obtain coverage in the traditional, retail insurance market. All licensed property insurers in Texas are required to be TWIA members as a condition of doing business in the State. The agency acts as a pool in which excess revenue is deposited into a state fund and excess losses are assessed back to the member-insurers. The existence of TWIA means ongoing availability and affordability of insurance along the Texas Coast and is especially important now as independent insurance companies are eliminating windstorm coverage for many coastal areas.Galveston is one of 14 first-tier Texas coastal counties that TWIA provides insurance coverage for. Click here to read more about TWIA.