Lubbock Homeowners: Navigating Storm Deductibles on a Budget

Can a $3,200 Storm Deductible Leave You Financially Devastated in Lubbock?

Lubbock homeowners might be surprised to learn that the average home insurance policy in Texas comes with a 1% wind/hail deductible. On a typical 1,800 sq ft house insured at $320k, this translates to a staggering $3,200 out of pocket before insurance pays anything.

The Texas difference: why this state has unique rules

Unlike some other states, Texas law requires homeowners to purchase separate flood coverage through the National Flood Insurance Program (NFIP), which can add an additional layer of complexity to storm repair financing. Additionally, Texas has a reputation for having one of the highest percentage wind/hail deductibles in the country.

In recent years, insurance companies have been increasing their policy exclusions and limitations, leaving homeowners with even more financial burden when it comes to storm repairs. For example, some policies now exclude damage caused by certain types of hail or require a longer waiting period before coverage kicks in.

What you're actually owed — the real numbers

A 1% hail deductible on a $300k home is $3,000. A 2% wind deductible on a $400k house is $8,000. These are just a few examples of how quickly these costs can add up.

How to get the most from your claim or contractor

Texas issues no state roofing license, so a TDLR lookup will not show one for a roofer. Ask instead for proof of general liability insurance, a local physical address, and BBB history, and get the scope of work and any warranty in writing before you hire.

Keep detailed records of all communication with your insurance company, including dates, times, and the names of representatives you speak with. This can help prevent disputes down the line.

Don't be afraid to reach out to resources like the Texas Department of Insurance (TDI) for guidance on the claims process or to report any suspicious activity from contractors or insurers. You can contact TDI at 800-252-3439 or visit their website at tdi.texas.gov.

Make sure you understand the terms of your policy, including any exclusions or limitations on coverage. If you're unsure about anything, ask questions before signing off on repairs.

Red flags: when the contractor or insurer is acting in bad faith

If a contractor says "we'll cover your deductible," walk away - it is illegal in Texas for a contractor to waive or pay your insurance deductible. Other red flags include:

Contractors who pressure you into making decisions quickly, without giving you time to think about the repairs or compare prices.

Insurance companies that deny claims without providing clear explanations or evidence of why coverage is being denied.

Contractors who ask for payment upfront or try to convince you to use their preferred vendors or suppliers.

Insurance representatives who promise to "take care" of your deductible, but can't provide any documentation or proof of such an agreement.

To avoid financial devastation from a storm repair, take the time this week to review your insurance policy and understand what's covered. Make sure you have a plan in place for financing repairs, including setting aside funds for deductibles and unexpected expenses. By being proactive and informed, you can protect yourself and your home in the face of severe weather.