Hurricane Harvey struck Texas around late August 2017 and more than six months after the storm, it seems that more people are now aware of the importance of flood insurance.
This manifested through the number of people in Houston who bought flood insurance policies after Harvey, according to the Federal Emergency Management Agency (FEMA). On the other hand, car insurance rates are expected to increase as a result of natural disasters.
More Insured People
Insurance is important to cover the expenses of rebuilding a house, including the payment for the contractors and roofing company that needs to be hired. Jaco Roofing & Construction Inc. and other experts added that homeowners should now make sure that they only use high-quality materials. They should check every corner of the house more often to be sure that everything is maintained properly.
In Houston, FEMA National Flood Insurance Program director Roy Wright said that there were 664, policyholders between July 31 and December 31, 2017, up from 585,000 people.
One of the main reasons for the increase in insurance demand stemmed from a better understanding that a certain area would still be at risk of floods, even if insurance was not necessary for homeowners in that region, according to Wright. As Harvey’s impact was unprecedented, more people have realized the need to protect themselves from future disasters.
Harvey damaged as much as 500,000 cars, so you need to be ready for any rate hikes on your premiums. Texas Department of Insurance Jerry Hagins partly attributed the possible increase to insurance providers that base the increase from annual losses, which will then be averaged “in overtime.”
Other factors for an increase include the scope of services for vehicle repairs, particularly if the technology used is more modern. Factors related to natural disasters are already a given, as the demand for claims often rise as people experience financial losses.
You may avoid paying hefty insurance premiums by using online tools to shop around for the best rates. Even if a certain company raises its rates, it does not necessarily mean that others will follow suit.