Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
It takes twenty two our time here in Houston's morning
news a right wind and hail and floods and hurricanes
and tornadoes, and yeah, we get it all here in Texas.
Ron's now for Joins US property insurance expert. And I
hate to put you on the spot here, Ron, but
I think that one of the things that will be
you know, very sad. I think for probably a lot
of folks in the Hill Country is they're probably are a
(00:22):
fair amount of people in the Hill Country that don't
have flood insurance.
Speaker 2 (00:26):
That's very true. Most of them are going to deal
with FEMA and that's going to take them a long
time to get paid. And or there's a cap of
two hundred and fifty thousand dollars on limits for FEMA.
Speaker 1 (00:41):
The other thing is even the ones that think to
get flood insurance, flood insurance has gotten to be cost
prohibitive for a lot of people. You know, we have
a place in Freeport that we have flood insurance on.
It's over three thousand dollars a year for just for
the flood insurance.
Speaker 2 (00:56):
You're one of the fortunate ones. I'm hearing some really
ridiculous down along the coastline that people are opting to
completely not have insurance.
Speaker 1 (01:07):
Now, that's that seems to be a recipe for disaster.
Would you agree to be completely uninsured unless you own
that place free and clear and have a whole bunch
of money to rebuild it? Does does it make sense
not to carry insurance?
Speaker 2 (01:20):
It doesn't make any sense, you know right now? Whether
it's so unpredictable. The stuff that happened over the weekend
was not expected to do anywhere near what it did,
and we had once in the generation type flooding there
in the Guadalupe and people will never be the same
(01:44):
because of it.
Speaker 1 (01:45):
So here's what I guess I have to wonder about
all this is where do you think property insurance rates
are going? We have seen them go very high here
over the course the last five or six years. They
seem to be continuing to head in that direction, and
I'm guessing events like what just happened in the Hill
Country I'm not going to help that. I assume that
(02:06):
the entire state insurance rates are probably going to go
up as a result of that event.
Speaker 2 (02:12):
Well, that will be part of it. But you have
to remember that the cost of construction has gone up
astronomically in the last five years here in Texas alone,
We've seen labor costs increase, We've seen material costs increase.
All that goes into what your costs for insurance is.
It's based on what the cost to replace your home
(02:35):
or your property and so forth. So as those prices
keep continuing to rise, the price for insurance will continue
to rise.
Speaker 1 (02:43):
So when you're trying to make an insurance decision, you're
a family and you're trying to make an insurance decision
and you can't afford to get everything. You can't afford
to get flood insurance plus winded hal insurance, plus property insurance.
We have all three on our place in Freeport, and
we're talking about well over seven thousand dollars year. Some
people are not gonna be able to afford to do that.
How do you go about picking what the most important
(03:05):
thing is to ensure.
Speaker 2 (03:08):
That's a great question. You really have to be strategic
in what you have available to you, and you should
try and get some type of coverage, even if it's
catastrophic where your deductible is extremely high. That way, at
least if you do have a hurricane that comes in
and wipes out the building, you're going to get the
majority of it paid back to you. You can increase
(03:30):
your deductible from one percent to two or three percent,
and that'll take care of the catastrophic loss. The smaller
claims you're going to be out of pocket on and
be paying for those yourself.
Speaker 1 (03:43):
Yeah, do you see anything that's going to improve the
landscape though, as first insurance costs.
Speaker 2 (03:50):
Hopefully in the next legislative session, which is a year
and a half away from now, we'll have something that
has done. Because insurance companies are still making astronomical profits
here in Texas, and somebody should step in and try
and wane in some of those profits. You know.
Speaker 1 (04:11):
The only thing that concerns me about that, and let
me get a quick thought from you on that, is
that places like California have done that, and as a result,
some insurers no longer do business in California. If you
take the pool and you make it smaller of available
insurance companies, seems like that would naturally drive the price
of insurance up.
Speaker 2 (04:30):
Well, even if we shave off a little bit of
margin on what they're making now, they're still making more
money than just about any other state in the country
and the stuff in California had to do with the wildfires.
They told them for years that they needed to have
better preparedness on water and fire departments and so forth,
(04:52):
and insurance the state said they wouldn't do anything about it.
And each year the insurance companies in California told them,
we need to increase prices, we need to increase prices,
and eventually they told them that they weren't going to stay.
Speaker 1 (05:08):
Yeah, now I give what you're saying. All right, Ron,
Thanks appreciate your time. Hoping for Lord Insurance caught someday
Ron's snow for property insurance export joining US six twenty
seven
It takes twenty two our time here in Houston's morning
news a right wind and hail and floods and hurricanes
and tornadoes, and yeah, we get it all here in Texas.
Ron's now for Joins US property insurance expert. And I
hate to put you on the spot here, Ron, but
I think that one of the things that will be
you know, very sad. I think for probably a lot
of folks in the Hill Country is they're probably are a
(00:22):
fair amount of people in the Hill Country that don't
have flood insurance.
Speaker 2 (00:26):
That's very true. Most of them are going to deal
with FEMA and that's going to take them a long
time to get paid. And or there's a cap of
two hundred and fifty thousand dollars on limits for FEMA.
Speaker 1 (00:41):
The other thing is even the ones that think to
get flood insurance, flood insurance has gotten to be cost
prohibitive for a lot of people. You know, we have
a place in Freeport that we have flood insurance on.
It's over three thousand dollars a year for just for
the flood insurance.
Speaker 2 (00:56):
You're one of the fortunate ones. I'm hearing some really
ridiculous down along the coastline that people are opting to
completely not have insurance.
Speaker 1 (01:07):
Now, that's that seems to be a recipe for disaster.
Would you agree to be completely uninsured unless you own
that place free and clear and have a whole bunch
of money to rebuild it? Does does it make sense
not to carry insurance?
Speaker 2 (01:20):
It doesn't make any sense, you know right now? Whether
it's so unpredictable. The stuff that happened over the weekend
was not expected to do anywhere near what it did,
and we had once in the generation type flooding there
in the Guadalupe and people will never be the same
(01:44):
because of it.
Speaker 1 (01:45):
So here's what I guess I have to wonder about
all this is where do you think property insurance rates
are going? We have seen them go very high here
over the course the last five or six years. They
seem to be continuing to head in that direction, and
I'm guessing events like what just happened in the Hill
Country I'm not going to help that. I assume that
(02:06):
the entire state insurance rates are probably going to go
up as a result of that event.
Speaker 2 (02:12):
Well, that will be part of it. But you have
to remember that the cost of construction has gone up
astronomically in the last five years here in Texas alone,
We've seen labor costs increase, We've seen material costs increase.
All that goes into what your costs for insurance is.
It's based on what the cost to replace your home
(02:35):
or your property and so forth. So as those prices
keep continuing to rise, the price for insurance will continue
to rise.
Speaker 1 (02:43):
So when you're trying to make an insurance decision, you're
a family and you're trying to make an insurance decision
and you can't afford to get everything. You can't afford
to get flood insurance plus winded hal insurance, plus property insurance.
We have all three on our place in Freeport, and
we're talking about well over seven thousand dollars year. Some
people are not gonna be able to afford to do that.
How do you go about picking what the most important
(03:05):
thing is to ensure.
Speaker 2 (03:08):
That's a great question. You really have to be strategic
in what you have available to you, and you should
try and get some type of coverage, even if it's
catastrophic where your deductible is extremely high. That way, at
least if you do have a hurricane that comes in
and wipes out the building, you're going to get the
majority of it paid back to you. You can increase
(03:30):
your deductible from one percent to two or three percent,
and that'll take care of the catastrophic loss. The smaller
claims you're going to be out of pocket on and
be paying for those yourself.
Speaker 1 (03:43):
Yeah, do you see anything that's going to improve the
landscape though, as first insurance costs.
Speaker 2 (03:50):
Hopefully in the next legislative session, which is a year
and a half away from now, we'll have something that
has done. Because insurance companies are still making astronomical profits
here in Texas, and somebody should step in and try
and wane in some of those profits. You know.
Speaker 1 (04:11):
The only thing that concerns me about that, and let
me get a quick thought from you on that, is
that places like California have done that, and as a result,
some insurers no longer do business in California. If you
take the pool and you make it smaller of available
insurance companies, seems like that would naturally drive the price
of insurance up.
Speaker 2 (04:30):
Well, even if we shave off a little bit of
margin on what they're making now, they're still making more
money than just about any other state in the country
and the stuff in California had to do with the wildfires.
They told them for years that they needed to have
better preparedness on water and fire departments and so forth,
(04:52):
and insurance the state said they wouldn't do anything about it.
And each year the insurance companies in California told them,
we need to increase prices, we need to increase prices,
and eventually they told them that they weren't going to stay.
Speaker 1 (05:08):
Yeah, now I give what you're saying. All right, Ron,
Thanks appreciate your time. Hoping for Lord Insurance caught someday
Ron's snow for property insurance export joining US six twenty
seven
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