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Wednesday, May 20, 2009

Auto Thefts Down Dramatically in Texas But Car Burglaries Rise

May 20, 2009

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Praise the work of auto theft task forces or new car manufacturers or both for the dramatic drop in auto thefts in Texas. Criminals are stealing older vehicles simply because they're finding it harder to bypass anti-theft devices that manufacturers have placed in newer cars.

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In some areas of the state auto thefts have dropped more than 80 percent in the past 15 years. Nationwide, auto thefts have dropped every year since 2003.

"Auto manufacturers continue to implement new anti-theft features making it much more difficult to steal a new car," said Lt. Tommy Hansen, past president of the International Association of Auto Theft Investigators. "But, even if with all of the new anti-theft devices in place, almost 50 percent of vehicles that are stolen still had the keys in the ignition."

Hansen said while auto thefts might be down, auto burglaries are skyrocketing. "When drivers leave their GPS units and laptop computers in plain sight, they are just asking for their vehicle to be burglarized," said Hansen.

Hansen said auto theft is a business and that older vehicles become marketable on the black market because of the need for certain auto parts. He said just because one drives an older car, it's not any less prone to being stolen.

Eight of the top ten most stolen cars are vehicles that are at least ten years old, according to the National Insurance Crime Bureau (NICB). The top three most stolen vehicles are a 1995 Honda Civic, a 1991 Honda Accord and a 1989 Toyota Camry.

"Unfortunately, most owners of older cars have abandoned their comprehensive auto insurance coverage and are only paying for state mandated liability coverage," says Mark Hanna, a spokesman for the Insurance Council of Texas. "This leaves them without any insurance protection if their vehicle is stolen, but there are several anti-theft devices on the market that can help them secure their vehicle."

Financially, auto theft remains a serious problem in Texas. In 2007, thieves made off with 94,000 vehicles worth $859 million.

Statewide in Texas, auto thefts are down 58 percent since the state implemented the Texas Auto Burglary and Theft Prevention Authority (ABTPA) in 1991. However, the Mexican border remains a problem where auto thefts have skyrocketed. Laredo is ranked second in the nation in number of vehicle thefts per 100,000 inhabitants.

Sgt. Eduardo Garcia of the Laredo Auto Theft Task Force says the problem with auto thefts along the Mexican border is completely different from anywhere else. "The criminals here can steal a vehicle and have it across the border in Mexico within three minutes," said Garcia. "They have also learned to bypass the anti-theft systems. All they need is a screw driver and a pair of vice grips."

Garcia said the most stolen vehicles in Laredo are Dodge, Ford and Chevrolet trucks which are used to carry or smuggle people and contraband. He said 90 percent of the vehicles stolen in Laredo are taken into Mexico and the officers' jurisdiction stops at the border.

If thieves are having a hard time stealing a certain vehicle, Garcia said they will take that car into Mexico and dissect it and eventually find a way to be able to steal this vehicle. Garcia called it Auto Theft 101.

Law enforcement officials say a wealth of information is readily available to professional auto thieves who have been able to bypass about every anti-theft device that manufacturers have put into place. The pros either strip the vehicle for parts or change the identification of the vehicle with a title from another car and then sell it.

Tow trucks have also been used to steal vehicles and this bypasses any anti-theft devices put in place.

In an attempt to prevent auto thefts and auto burglaries the Insurance Council of Texas has worked with more than a dozen Texas cities in providing Lock, Take and Hide crime prevention signs for the parking areas of shopping malls, restaurants, business centers and apartment complexes. The signs advise motorists to Lock their cars, Take their keys and Hide their possessions.

"Criminals would have a much harder time in stealing and burglarizing vehicles if all motorists heeded this simple message," said Hanna.

The ABTPA says other preventive measures that have slowed down auto thefts have been etching VIN numbers into vehicle windshields, educating communities on how they can prevent auto thefts and having dedicated law enforcements focused on auto theft.

Source: The Insurance Council of Texas, www.insurancecouncil.org

6 life insurers qualify for bailout money Story Highlights

Six life insurance companies to receive TARP money, U.S. Treasury says

As of April, about $135 billion remained from original $700 billion allocated for bailout

Industry has suffered amid concerns with capital requirements, growing losses

updated 3:39 a.m. EDT, Fri May 15, 2009Next Article in Politics »



WASHINGTON (CNN) -- Six life insurance companies have qualified to receive billions of dollars in bailout money under the government's Troubled Asset Relief Program, according to the U.S. Treasury Department.


Allstate is one of six life insurance companies who are qualified to receive TARP money.

Treasury Department spokesman Andrew Williams said Allstate, Ameriprise Financial, Hartford Financial Services Group Inc., Lincoln National Corp., Principal Financial and Prudential Financial Inc. have qualified for TARP money.

"These life insurers met the requirements for the Capital Purchase Program because of their bank holding company status and each applied for CPP capital investments by the deadline of November 14, 2008," Williams said.

Williams also said other financial institutions in the Capital Purchase Program "will be reviewed and funded as appropriate on a rolling basis."

In April, about $135 billion remained from the original $700 billion allocated for the bailout last October. No current figures were immediately available.

No funding amounts were announced by the Treasury Department, but Hartford said it had been preliminarily approved for $3.4 billion.

"We are pleased that we received preliminary approval to participate in (the) Treasury's Capital Purchase Program," said Ramani Ayer, chairman and chief executive officer of Hartford. "These funds would further fortify our capital resources and provide us with additional financial flexibility during one of the most volatile market climates in our nation's history."

Investors have been increasingly worried about the health of life insurers, which have been hit hard by worries about capital requirements and growing losses.

A number of insurers that are also bank holding companies or thrifts have been eligible for funds from TARP since last fall.

Last year, the Office of Thrift Supervision approved applications from Hartford and Lincoln to become bank holding companies, because of their planned bank purchases.

Philadelphia, Pennsylvania-based Lincoln is buying Newton County Loan & Savings FSB in Goodland, Indiana. Hartford, based in Hartford, Connecticut, is buying Federal Trust Bank in Sanford, Florida.

2,300 Houston-area Homes Flooded in April

May 15, 2009

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The count of Houston-area homes flooded during heavy rains in late April totaled about 2,300, among the highest totals since 73,000 homes were damaged by Tropical Storm Allison in 2001.

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More than 11 inches of rain fell in some areas of Houston on April 27 and 28.

Heather Saucier, a spokeswoman for the Harris County flood control district, said more than half of the flooded houses weren't in a mapped flood plain. She said that was a reminder that every property owner in the county is at risk for flooding, the Houston Chronicle reported.

At least 1,350 of the residences were in Houston.

Gov. Rick Perry is waiting for inspectors to continue assessing damage before making a decision on what type of assistance to seek for the area.

Ratings: Allstate, Arrowhead, Nat'l. Lloyd's/Summit, ISMIE Mutual, Greenville Casualty, Un. Farm Indiana

May 13, 2009

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Standard & Poor's Ratings Services has assigned its 'A-' senior debt rating on Allstate Corp.'s (ALL) recently priced senior debt issue. S&P also affirmed its 'A-' counterparty credit rating on ALL and its 'AA-' counterparty credit and financial strength ratings on ALL's property/casualty and life insurance operating companies. The outlook on all of these companies, however, remains negative. S&P said it "expects ALL to use the net proceeds to retire its $750 million aggregate principal amount 7.20 percent senior notes due 2009 at their scheduled maturity on Dec. 1, 2009." Credit analyst Neil Stein added: "This debt issue will result in a temporary increase in financial leverage and a decrease in interest coverage until the December notes are repaid. But, we believe these credit measures will remain within our expectations." Additionally, we expect that the proceeds will be held at the holding company and will be invested in short-term, highly liquid securities.

Standard & Poor's Ratings Services has affirmed its 'B-' counterparty credit rating on San Diego, Calif.-based Arrowhead General Insurance Agency. S&P also said it has removed the rating from CreditWatch with negative implications, but has assigned a negative outlook. S&P has also revised its "recovery rating on Arrowhead's senior secured credit facilities to '3', indicating our expectation of meaningful (50 percent-70 percent) recovery for lenders in the event of a payment default, from '2'. S&P also said: "We lowered our issue-level rating on these loans to 'B-' (the same level as the 'B-' counterparty credit rating on the company) from 'B', in accordance with our notching criteria for a recovery rating of '3'. The revised recovery rating reflects our expectation for a more significant decline in cash flow in our simulated default scenario than that used in our previous analysis." Credit analyst Michael Gross added: "Today's rating actions reflect the receipt of Arrowhead's 2008 financial information, the receipt of amended credit agreements and covenants, discussions with Arrowhead's management and its primary private equity investor, and our updated analysis." S&P explained that Arrowhead delayed its 2008 financial filing with S&P, "because of noncompliance with some of its restrictive bank loan covenants at year-end 2008 and ongoing discussions to amend its credit agreements with its lenders. Although there has been no interruption in the company's scheduled debt and interest payments, the company--and compliance with its loan covenants--has been adversely affected by declining premium rates in the property/casualty industry and some carrier disruption." Gross said the "negative outlook reflects our concerns about the recessionary impact on insurance purchasing and the company's ability to manage through the trough of the premium rate cycle." The company's liquidity profile in particular is weaker than in prior years, as its reduced operating cash flow and reduced cash balance demonstrate. The outlook also reflects the company's lack of progress in replacing its former CFO, who resigned in July 2008."

A.M. Best Co. has affirmed the financial strength rating (FSR) of 'A' (Excellent) and issuer credit rating (ICR) of "a+"of National Lloyds Insurance Company, both with stable outlooks. Best also affirmed the FSR of 'A-' (Excellent) and ICR of "a-" of American Summit Insurance Company, an affiliate of National Lloyds, with a positive outlook. Best noted that both companies are subsidiaries of NLASCO, Inc., which is owned by Hilltop Holdings, Inc., headquartered in Dallas, Texas. "The rating actions on National Lloyds reflect its continued solid risk-adjusted capitalization, favorable operating performance in recent years and local market expertise within its niche of the personal property insurance market," said Best. "These positive rating factors are somewhat offset by National Lloyds' geographic concentration of risk primarily in the Texas marketplace, with susceptibility to frequent and severe weather related events. As a result, the company produced an underwriting loss in 2008, due to multiple hurricane and tornado/hail events." In addition Best noted that the "rating actions on American Summit recognize its favorable risk-adjusted capitalization, geographic spread of risk in moderately catastrophe prone areas and profitable underwriting performance."

A.M. Best Co. has upgraded the financial strength rating (FSR) to 'B++' (Good) from 'B+' (Good) and issuer credit ratings to "bbb" from "bbb-" of Chicago-based ISMIE Mutual Group and its lead member, ISMIE Mutual Insurance Company (ISMIE), both with stable outlooks. Best explained that the "upgrades reflect ISMIE's improved operating performance, strengthened risk-adjusted capitalization and its more conservative leverage position. These developments are attributable to various risk management initiatives and organizational changes that management has implemented over the last few years and the passage of tort reform in 2005. However, due to the precarious status of tort reform, which was declared unconstitutional by an Illinois Circuit Court in 2007 and is currently on appeal at the Illinois Supreme Court, management has adopted a conservative approach to recognizing the loss cost benefits in its rate and reserve making process. This approach should allow ISMIE to maintain its balance sheet strength in the event that tort reform is ruled unconstitutional. ISMIE ranks as the leading medical professional liability insurer in Illinois and continues to benefit from its high policyholder retention and aggressive claims management. Partially offsetting these positive factors is that ISMIE, a largely mono-line, mono-state writer, is exposed to inherent challenges related to price competition, legislative (tort) reform, loss cost trends and regulatory constraints. These risks are somewhat heightened in Illinois, where regulatory constraints are numerous and the permanency of tort reform is in question. In addition, ISMIE experienced earlier (2002-2005) adverse loss reserve development and continues to maintain high ceded reinsurance leverage. However, the reinsurance leverage is somewhat mitigated by ISMIE's use of high quality reinsurers."

A.M. Best Co. has upgraded the financial strength rating to 'B+' (Good) from 'B' (Fair) and issuer credit rating to "bbb-"from "bb+"of So. Carolina's Greenville Casualty Insurance Company, and has revised its outlook on both ratings to stable from positive. "These rating actions reflect Greenville's favorable risk-adjusted capitalization stemming from its low underwriting leverage and strong liquidity position, which is attributable to its conservative investment portfolio," Best explained. "The ratings also recognize the corrective actions management has taken to boost overall profitability, including new product offerings, the termination of unprofitable agents and gradual geographic expansion. As a result, Greenville's loss experience continued to trend favorably, and overall operating performance significantly improved. Partially offsetting these positive rating factors are Greenville's premium volatility and historically elevated expense structure related to start-up and business development costs. In addition, Greenville historically maintained a limited business profile with product and geographic concentrations as a nonstandard auto writer in South Carolina. However, Greenville recently entered the standard and preferred auto market, while gradually expanding into North Carolina. This expansion brings with it some risks, as the diversification, coupled with an unseasoned book of business, will continue to be a factor in Greenville's risk profile.

A.M. Best Co. has downgraded the financial strength rating (FSR) to 'A-' (Excellent) from 'A' (Excellent) and issuer credit ratings (ICR) to "a-" from "a" of United Farm Bureau of Indiana Group and its member companies, United Farm Family Mutual Insurance Company and UFB Casualty Insurance Company. Best also affirmed the FSR of 'A-' (Excellent) and ICR of "a-" of Countryway Insurance Company of Syracuse, NY, a subsidiary of United Farm Family Mutual. The outlook for all ratings is stable. Best indicated that the "downgrading of Indiana Farm Bureau's ratings is a result of the recent deterioration in its operating performance and capitalization. In recent years, and particularly in 2008, the group's results were negatively impacted by frequent and severe weather-related events, which resulted in significant underwriting losses, sizeable realized and unrealized capital losses due to equity market volatility and the group's elevated common stock leverage." However, best did noted that these "factors are partially offset by Indiana Farm Bureau's market presence and the support from the Indiana Farm Bureau Federation, which facilitates the group's marketing, business retention and government relations efforts. In addition, the ratings reflect Indiana Farm Bureau's adequate risk-adjusted capitalization, despite recent deterioration, and its geographic spread of risk. The affirmation of Countryway's ratings recognizes its adequate capital position and a conservative investment income strategy. Also reflected is the support that Countryway receives from its parent, United Farm Family Mutual. Partially offsetting these positive rating factors are the company's unfavorable underwriting results in recent years, elevated underwriting leverage and exposure to frequent and severe weather-related events."

Texas Agents Rate Companies on 2008 Hurricane Response

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Insurance companies responding to last year's hurricanes Dolly and Ike were given generally good marks by independent agents along the Texas coast in a recent member survey by the Independent Insurance Agents of Texas (IIAT), but agents were quick to point out communication flaws and delays that angered customers.

Nearly 100 agents responded to the survey evaluating 60 companies adjusting claims in Texas' coastal counties. The questions dealt with claims response time, communications, coverage interpretations and adjuster force.

"As the liaison between insurance carriers and coastal policyholders, independent agents are often the first-hand responders to insurance needs during a disaster. After a volatile hurricane season, it's important our agents assess the claims-handling performance of top carriers and make improvements for next year," said Garry Kaufmann, IIAT president and president of Galveston Insurance Associates.

Agents were specifically asked to rank insurers based on (1) interpretation of policy provisions and calculation of claims amounts; (2) timely response to policyholders after a notice of loss was submitted; (3) response to follow-up contacts (4) ability to advance additional living expense amounts for clients without delay; and (5) helpful communications with the agent and client.

According to the survey, the top three performers were Chubb, Zurich and Travelers insurance companies. Companies that set up mobile claims units in the area also received high marks, while small regional property companies received the lowest grades.

Overall, agents reported that most companies interpreted coverage and valuation correctly and responded in a timely manner to first notices of loss.

On average, adjusters contacted customers within four to seven days, though many companies were faster.

Toll-free numbers were especially helpful in managing claims, and most companies avoided putting customers on hold for long periods.

Coastal independent insurance agents also noted several challenges working with out-of-state adjusters who seemed poorly trained in adjusting procedures and Texas policies. This stalled their ability to help clients receive claims appropriately and on time.

Also, agents were concerned with the lack of consistency in the payment of Additional Living Expenses, especially due to the loss of utilities in the area. Some suggested the industry find a uniform way to cover evacuation costs under a property policy.

In conclusion, one agent concisely put what many agents expressed as the key to successful storm claims-handling: talk with agents frequently to gain feedback and adjust forces in the field; have a catastrophe response plan in place for your own company; establish good relations with better independent adjustment firms before the storm; and establish a help-desk for follow-up calls on active claims.

Source: IIAT, www.iiat.org

Best Revises Liberty Mutual Group Outlook to Negative; Affirms Ratings

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A.M. Best Co. has revised the outlook to negative from stable for the financial strength (FSR) and issuer credit ratings (ICR) of Liberty Mutual Group, Inc. (LMGI), Liberty Mutual Insurance Companies and Liberty Insurance Holdings (LIH) and their members, as well as, Liberty Life Assurance Company of Boston and the UK-based Liberty Mutual Insurance Europe, Ltd. (LMIE). These companies are all operating subsidiaries of LMGI.

Best has also affirmed the FSR of 'A' (Excellent) and ICRs of "a" of each of the member operating companies and has extended the FSR, ICRs and outlook to the former operating subsidiaries of Safeco Corporation, all of which are now members of the LIH pool.

In addition Best affirmed the ICRs of "bbb" for Liberty Mutual Holding Company Inc. and LMGI, along with the debt ratings of LMGI, Safeco and Ohio Casualty Corporation, and has assigned debt ratings of "bbb" to the recently issued $280.6 million senior unsecured notes due 2010, $187.4 million senior unsecured notes due 2012 and $179.6 million senior unsecured notes due 2014 of LMGI, issued in exchange for debt existing at both Safeco and Ohio Casualty. Best has also withdrawn the shelf ratings for Safeco and Ohio Casualty. The outlook for all ratings is negative.

Concurrent, with the integration of the Safeco operating companies into the LIH pool, an NR-5 (Not Formally Followed) has been assigned to the FSR and an "nr" to the ICR of the Safeco Insurance Companies. All companies are located in Boston, MA, except where specified. (See link below for a detailed listing of the ratings.)

"These rating actions reflect the sizeable deterioration in overall capitalization of LMGI given the impact of market conditions, increased level of financial leverage and limited ability of the parent to improve overall capitalization given its strained financial flexibility, Best explained."Overall capitalization declined significantly in 2008, largely due to unrealized losses of $2.2 billion associated with volatility in the capital markets.

"As such, the financial leverage as measured by debt-to-adjusted tangible capital at LMGI increased to 31.9 percent as of year-end 2008. While LMGI maintains access to significant sources of liquidity, accessing these sources for other than short-term operating needs would further increase financial leverage, which would create additional downward rating pressure."

In addition Best noted that "Liberty Mutual is the nation's third-largest commercial lines writer and seventh-largest personal lines writer in the United States based on direct premiums written, inclusive of the acquisition of Safeco, which closed during third quarter 2008.

"The group operates globally, utilizing four business units: personal markets, commercial markets, agency markets and international. Given the group's focus on achieving proper pricing through cycle management, A.M. Best expects profitability to remain solid while growth in overall capitalization will be pressured by ongoing volatility in the investment markets.

"The affirmation of the ratings for Liberty Life recognizes its established market profile, solid risk-adjusted capital position and improved statutory operating results. Furthermore, the ratings acknowledge Liberty Mutual's explicit capital support and its commitment to maintain favorable capital levels at Liberty Life.

"LMIE's rating affirmations reflect its solid balance sheet strength, strong operating performance within niche markets, brand recognition and the explicit support provided by its parent, Liberty Mutual."

For a complete listing of Liberty Mutual Group, Inc.'s FSRs, ICRs and debt ratings, go to: www.ambest.com/press/040903libertymutual.pdf.

Source: A.M. Best - www.ambest.com

Texas Agents Rate Companies on 2008 Hurricane Response

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Insurance companies responding to last year's hurricanes Dolly and Ike were given generally good marks by independent agents along the Texas coast in a recent member survey by the Independent Insurance Agents of Texas (IIAT), but agents were quick to point out communication flaws and delays that angered customers.

Nearly 100 agents responded to the survey evaluating 60 companies adjusting claims in Texas' coastal counties. The questions dealt with claims response time, communications, coverage interpretations and adjuster force.

"As the liaison between insurance carriers and coastal policyholders, independent agents are often the first-hand responders to insurance needs during a disaster. After a volatile hurricane season, it's important our agents assess the claims-handling performance of top carriers and make improvements for next year," said Garry Kaufmann, IIAT president and president of Galveston Insurance Associates.

Agents were specifically asked to rank insurers based on (1) interpretation of policy provisions and calculation of claims amounts; (2) timely response to policyholders after a notice of loss was submitted; (3) response to follow-up contacts (4) ability to advance additional living expense amounts for clients without delay; and (5) helpful communications with the agent and client.

According to the survey, the top three performers were Chubb, Zurich and Travelers insurance companies. Companies that set up mobile claims units in the area also received high marks, while small regional property companies received the lowest grades.

Overall, agents reported that most companies interpreted coverage and valuation correctly and responded in a timely manner to first notices of loss.

On average, adjusters contacted customers within four to seven days, though many companies were faster.

Toll-free numbers were especially helpful in managing claims, and most companies avoided putting customers on hold for long periods.

Coastal independent insurance agents also noted several challenges working with out-of-state adjusters who seemed poorly trained in adjusting procedures and Texas policies. This stalled their ability to help clients receive claims appropriately and on time.

Also, agents were concerned with the lack of consistency in the payment of Additional Living Expenses, especially due to the loss of utilities in the area. Some suggested the industry find a uniform way to cover evacuation costs under a property policy.

In conclusion, one agent concisely put what many agents expressed as the key to successful storm claims-handling: talk with agents frequently to gain feedback and adjust forces in the field; have a catastrophe response plan in place for your own company; establish good relations with better independent adjustment firms before the storm; and establish a help-desk for follow-up calls on active claims.

Source: IIAT, www.iiat.org

Liberty Mutual First-Quarter Profit Drops; Insurer Continues to Seek Rate

BOSTON May 06 (BestWire) — Liberty Mutual Group first-quarter net
income fell more than 92%, compared with results from the same time in 2008 due
to losses in private equity income and catastrophes while the company says
it continues to look for rates to match the risk it writes. Net income was
$28 million for the first quarter, compared with $360 million during the
first quarter in 2008.

In a conference call, Edmund F. Kelly, chairman, president and chief
executive officer, said that "fundamentally, our businesses continue to
perform well" and the continued integration of the company's purchase of
Safeco Corp. last year has "progressed well," accounting for much of
Liberty Mutual's growth and profitability especially in the automobile
insurance segment.

Worldwide, auto insurance operations grew 32%, compared with a year ago.
The company now insures 13.2 million vehicles worldwide, growing 54% in
the United States. Without Safeco, that growth was 7%, Kelly said. Liberty
Mutual continues to seek rate increases in auto, of which about 90% of
filings have been approved, Kelly said.

In homeowners, Liberty Mutual was hurt by 11 catastrophes in the West and
Midwest but especially Georgia, Texas and Oklahoma. Here too, Kelly said
Liberty Mutual is "aggressively seeking rate increases" especially in the
Midwestern states where the "industry has been underpricing" the
catastrophe risk in terms of primary insurance and reinsurance.

The insurer recorded about $326 million in catastrophe losses — about $6
million related to hurricanes in September 2008. The figure includes
assessments from the Texas Windstorm Insurance Association. Hurricanes Ike
and Dolly battered Texas in September last year.

Liberty Mutual also took a $373 million loss on private equities. Kelly
said the insurer "felt the negative impact of the capital markets this
quarter through lower values on our private equity portfolio."

http://www3.ambest.com/news/NewsSearch.aspx?both=1

Tuesday, May 5, 2009

Hurricane season starts June 1st - November 30th


Hurricane season starts June 1st - November 30th

Floods and flash floods happen in all 50 states.
Everyone lives in a flood zone. (For more information, visit our Flood Zones FAQs.)
Most homeowners insurance does not cover flood damage.
If you live in a Special Flood Hazard Area (SFHA) or high-risk area and have a Federally backed mortgage, your mortgage lender requires you to have flood insurance. (To find your flood risk, fill out the Flood Risk Profile to the left.)
Just an inch of water can cause costly damage to your property.
Flash floods often bring walls of water 10 to 20 feet high.
A car can easily be carried away by just two feet of floodwater.
Hurricanes, winter storms and snowmelt are common (but often overlooked) causes of flooding.
New land development can increase flood risk, especially if the construction changes natural runoff paths.
Federal disaster assistance is usually a loan that must be paid back with interest. For a $50,000 loan at 4% interest, your monthly payment would be around $240 a month ($2,880 a year) for 30 years. Compare that to a $100,000 flood insurance premium, which is about $400 a year ($33 a month).
It takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before the floodwaters start to rise.
Your home has a 26% chance of being damaged by a flood during the course of a 30-year mortgage, compared to a 9% chance of fire.
Last year, one-third of all claims paid by the NFIP were for policies in low-risk communities.
The average annual U.S. flood losses in the past 10 years (1994-2004) were more than $2.4 billion.
More info at www.floodmart.gov

Below are packaged prices for zones that don't have a history of flooding in Harris county, typically referred to as "non flood zones". This is a government policy so the price should be the same, no matter which company the policy is purchased from.

Building and Contents Coverage (Without Basement)

Building Coverage Contents Coverage Premium
$20,000.00 $8,000.00 $119.00
$30,000.00 $12,000.00 $148.00
$50,000.00 $20,000.00 $196.00
$75,000.00 $30,000.00 $230.00
$100,000.00 $40,000.00 $257.00
$125,000.00 $50,000.00 $277.00
$150,000.00 $60,000.00 $296.00
$200,000.00 $80,000.00 $326.00
$250,000.00 $100,000.00 $348.00


($500 deductibles each)

The package for $250,000 of dwelling replacement cost and $100,000 Contents Coverage (actual cash value, not replacement cost) is the most coverage you can purchase for residential that is backed by the government. However, you can purchase additional coverage that is not backed by the government.