Banker · Dallas, TX · Member since 2013 · 158 posts · 129 votes
I have greatly enjoyed reading the forums and articles thus far. I am really wanting to get to know some of the Houston folks on here. I lived in the Dallas area for 28 years and began investing in sfr's in 2008, so I know that market quite well. I am needing to gain market knowledge and meet real estate people in Houston. I am in the process of purchasing my first sfr in Katy and I ran into a little insurance speed bump. My agent indicated that the house could only be insured under Texas FAIR Plan. I prefer a full landlord policy that insures the replacement cost rather than actual cash value. I can certainly go with the FAIR Plan but it's not ideal. These landlord policies were no problem in Dallas but I am wondering if FAIR is in fact my only option or if there are alternatives for Katy, TX. Thanks in advance. Also, I would love to attend a meet up group in the west Houston area if one is coming up.
Investor · Kansas City, MO · Member since 2008 · 153 posts · 81 votes
13y
Hi Waylon...welcome to BP!
The challenge presented by Houston/Harris county is the need for what is typically referred to as "Named Storm" coverage. Since many insurers shy away from the coastal regions, your coverage options in these areas are more limited than your experience in Dallas. That stated, there are likely more choices than the TX Fair Plan, it just may be that your agent doesn't have access to them... Hope this helps...
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
13y
Safeco and Foremost are a couple of companies that write landlord policies. Try checking their web site and looking for agents in your area. My regular agent (State Farm) wouldn't do my landlord policies and I ended up using a different agent to get those policies.
Grats on your first purchase. Houston is hot right now! I use the National Real Estate Insurance Group for my investing. It's actually owned by Tim Norris who commented above haha! They insure all my investments and I've been nothing but pleased with their service. Hope that helps!
Investor · Houston, TX · Member since 2013 · 228 posts · 30 votes
12y
Hi @Waylon Themer and a belated welcome to BP! I'm currently looking for a solid insurance company that is tuned with real estate investors here in Houston. One agency said they don't have companies covering the area my property is in but offered the Texas Fair Plan. What were you able to come up with? I'm new too and would love to meet up sometime.
SFR Investor · Friendswood, TX · Member since 2013 · 136 posts · 11 votes
12y
Find a local independent agent. They will find companies to write the policies and will do it in business names. I have found big boys like Allstate etc.. Won't do policies in a business name but independents will. I have found they will typically have a higher deductible for a named storm. Ie 1500 normal but if names storm it's 3000 deduct.
And yes Dallas is nothing like houston when it comes to insurability of properties and it will cost you much more in insurance due to chance of tropical storms and hurricanes.
Investor · Houston, TX · Member since 2014 · 208 posts · 135 votes
11y
@Waylon Themer - I'm curious who you ended up going with. I am also trying to insure in Harris County at the moment and am running into some speed bumps as well - either companies won't insure at all, some that will but without windstorm coverage or those with storm coverage are pretty darn expensive. My quote through @Tim Norris 's company has an $1,800 premium with a $10,000 deductible for Named Storm Damage (eek) which also applies to any wind/hail damage at all when NS coverage is chosen (this makes me nervous). On the bright side, it comes with $1M in liability. Would you mind sharing who you ended up going with?
Banker · Dallas, TX · Member since 2013 · 158 posts · 129 votes
11y
Hi @Emily Powell I ended up going with Texas Fair Plan. It's not the best insurance but it's cheap. I think you have to own the properties in your individual name in order to use it. I was in the same pickle as you andjust had to weigh risk and reward. Many investors use blanket insurance on multiple houses. That helps cost quite a bit. @Tim Norris may be able to weigh in on that.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
11y
Hi Waylon,
Yes Houston has some unique challenges when it comes to home insurance. When I first moved here in 2002 the insurance companies were having a collective hissy fit after TS Allison. And there was also a big mold remediation issue. Most companies stopped writing new policies and I ended up paying close to $2000 for insurance on my personal residence.
After a few years it started to settle down and I was finally able to buy a much more reasonably priced policy ($800). And then here comes Ike lol. Since then my premiums have gone up to a little over $1200, even though my house had no scratch from Ike.
By the way, not related to insurance, but my credit score also took a 50 point ding after Ike. When I asked why, I was told it was because I lived in a designated natural disaster area. That made absolutely no sense to me. Oh well.
Investor · Kansas City, MO · Member since 2008 · 153 posts · 81 votes
11y
Hi all,
Sorry for delayed reply. As has already been mentioned or alluded, Houston is a tough market for insurance. Though Ike didn't do nearly as much damage as many think, it still has ramifications on costs there. As an investor, I am not adverse to risk, so higher deductibles are fine by me and statistically are better for insureds as well. Hope this brief info helps.
Waylon---NEVER heard of that 50 point "ding"...wow!