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Nationwide is not on your side
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Nationwide is not on your side, fortunately there are many companies that are more than willing to stand by you.
Nationwide and several other Large Insurance Companies are canceling Coastal homeowners insurance policies for homeowners within 2500ft of the shore. This has turned into a boom for smaller companies willing to stand by their customers.
 See Video
Galveston County Crystal Beach - On January 7th 2008 Charlotte Edmonston, Managing Director of Gallagher Insurance will be giving a presentation on their program for complete coastal insurance coverage, even in non-FEMA designated areas.
Contact the Bolivar Peninsula Chamber of Commerce for details: info@bolivarchamber.org
Newer home designs featuring hurricane resistant construction and much tougher building codes are making coastal insurance less of a risk. Many of the older homes that have caused the larger companies to abandon their customers have already been upgraded or replaced during the major storms over the past several years.
Smaller and more local oriented companies have been quick to recognize this trend and are cashing in on the now gun-shy companies like nationwide. These more nimble companies backed by powerhouses such as LLoyds of London have created special funds to cover areas on the Texas Gulf Coast, even those areas that are outside the FEMA coverage zones.
The cost of living along the coast is getting expensive if you don’t know where to look for homeowners insurance. Also make sure your home is upgraded or new home is built to the new standards that eliminate much of the risk. Build them taller and stronger sums up the new government building codes and insurance backed guidelines of the I.B.H.S.
The Texas Department of Insurance said big-name insurers like Nationwide are retreating from the coast after several years of costly hurricanes. TDI said more than half of the largest insurance companies no longer write new business in Texas’ coastal counties. Plus, a third of them are no longer renewing policies here either.
Nationwide said it decided to cancel 870 policies on the Texas Gulf
Coast this past January. Of them, 579 are in Galveston County. Nationwide said it made the difficult decision so it could responsibly manage its coastal exposure and other customers. Nationwide said it is also helping customers find new policies as well.
But as big companies withdraw smaller ones like Comiskey Capital Insurance Agency on Tiki Island are booming. Lizabeth Comiskey said her business has spiked 60 percent over the last year. “We’re doing well,” Comiskey said. “It’s good because we’re independent. We’re not just stuck with one rate. We can go out there and shop and try to find the best rate for you.”
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ByHouston Chronicle @
Saturday, November 17, 2007 2:53 PM |
Regulators have approved an 8.2 percent increase in premiums for residential policyholders along the coast insured by the Texas Windstorm Insurance Association.
Commercial property owners will see a 5.4 percent increase under the changes approved Thursday by Insurance Commissioner Mike Geeslin.
The windstorm association is a pool of all property insurers that serves as the insurer of last resort for coastal customers who can't find wind coverage in the marketplace.
The new rates take effect Feb. 1. For residential policyholders in Texas' 14 coastal counties, rates will go up about $84 on an average windstorm policy of $1,023, Insurance Commission spokesman Jerry Hagins said.
The windstorm association had asked for 10 percent increases for both residential and business policyholders. It said the increases were warranted because of a Gulf Coast building boom and a lack of private insurers offering wind coverage.
"Coastal TWIA customers must understand that the cost of rebuilding homes and business has increased dramatically, partially fueled by the enormous amount of residential and commercial construction along the Gulf Coast," said Jerry Johns, a spokesman for the association.
Reliance on the insurance association has jumped dramatically over the past two years, since hurricanes Katrina and Rita hit the Gulf Coast. The association now covers more than 213,000 structures, including more than 69,000 structures added this year.
"TWIA has become the market of first choice rather than the market of last resort," Johns said.
A committee of Galveston property owners opposed the increase, as did the Office of Public Insurance Counsel.
"The 8.2 percent is going to lead to excessive rates," said Rod Bordelon, executive director of the insurance counsel's office.
Geeslin ordered that 25 percent of premiums be placed in a catastrophe fund to cover claims in the event of a major hurricane.
The association generally keeps $80 million to $100 million available to pay claims, officials said, but if it runs out of money, the association can charge the state's private insurance companies.
In turn, the private companies can seek tax credits from the state.
The Texas Legislature has looked at ways to rework the windstorm insurance fund to brace for catastrophic losses but hasn't reached a solution.
Private companies still sell other types of property insurance along the coast. |
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