The effects of Hurricane Harvey have been devastating to the Gulf Coast, specifically Houston and surrounding areas. The total damage from flooding and destruction is estimated to cost companies, small businesses, and homeowners as much as $100 billion, according to Imperial Capital. While the Gulf Coast is a high-risk area for flooding from hurricanes and natural disasters, the majority of these homeowners do not carry flood insurance. In this article, we’ll explain why that is. If we can learn anything from this catastrophic event, HOAs and homeowners need to reflect on their current coverage to ensure they are carrying the policies needed to recover from a natural disaster. Before reading on, review your LA HOA Insurance policy.
So, why the disconnect between important insurance coverages in this area? According to Quartz Media, US homeowners in the “100-year floodplain”—areas that have a 1% chance of flooding in any given year—have to buy flood insurance, and then only if they’re taking out a federal mortgage loan or their private lender specifically requires it. This flood insurance in the US is mostly handled by an outdated, heavily debt-laden government scheme, the National Flood Insurance Program (NFIP). The NFIP’s data determining which zones are flood zones can be years, or even decades, out of date.
Without updated information, homeowners in high-risk areas don’t know the perils they face when a storm approaches. In the last few years alone, Houston homeowners have faced several bouts of flooding, which can easily drain the cash cushion these uninsured homeowners had.
In addition, these homeowners either don’t know they aren’t covered under their standard home insurance policies or they don’t want to spend the money. They might be under the impression they are in a low-risk area, and spending unnecessary money on something that likely won’t happen is useless. However, they couldn’t be more wrong.
At Scott Litman Insurance Agency, we have a deep understanding about the risks that California HOA’s, homeowners and businesses face when it comes to natural disasters. Not only do we offer comprehensive Earthquake and HOA insurance policies to give you the protection you’d need to recover, we also partner with the Red Cross. We want to support our communities and beyond, and value the work that the Red Cross does to assist families get back on their feet. To make a donation to the victims and displaced homeowners of Hurricane Harvey, click here.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.