Is insurance in Galveston required?

The short answer is yes. And it is the safest answer I want to give. However, in some instances the answer to this question might be "no", but I still would never recommend going without insurance simply because of where we live... read on...
If you are lucky enough to pay cash for your Galveston Island home, you'll find that there is no pesky lender requirement that says you have to have flood, windstorm and homeowners insurance all lined up and ready prior to closing. (Yes, we have to have all 3 here) The title company won't be hassling you for your insurance provider contact info. You might never even be asked about it - how are you to know what to do??? This is where your "pesky" (I prefer the term concerned) Realtor and Buyer's Rep should insist on you carrying at least some coverage for the protection (and peace of mind) of your new investment that you've both worked so hard to get!




Now, let me say that, for the record, I am not the biggest proponent of insurance - most kinds, anyway. (1) Yes, I came from a military family background where health insurance was just "always there" and my parents' employers forked over the lofty bills while I took it for granted that we only had to pay $10 a pop each time we headed to the doctor. (That's much different now that we pay for it ourselves and HOLY COW that stuff's not cheap! There's one i don't like...) (2) And yes, I am a female so I am therefore insured to drive at a fraction of the price as my husband (that's scary too - ladies, I've seen us doing some crazy stuff out there while behind the wheel... Try and finish the makeup before leaving the house!). But, it didn't do us any good to be insured when my husband's prized 1978 CJ7 Jeep was vandalized for no reason while it was not even being driven!! - That's the second one I don't like. (3) And yes, we have a mortgage on our home here in the East End Historic District so we are required to carry a certain amount of insurance. BUT, I can assure anyone that even if it were not a requirement, there's NO WAY we wouldn't have it. This is one that I don't mind so much paying for...

When we were boarding up our house and the shop (all 22 windows - ugh - thank God for shutters!) 2 years ago (September 2005) as Category 5 Hurricane Rita was barreling towards our general direction, we were actually saying to each other "do we have enough insurance on this place?!?!" To think of all the time, work and sweat we've put into this home and to think that, should disaster strike, all of that would be lost?? Whew. That's not a comforting thought.

So, we boarded up, took a ton of pictures, said a prayer, tossed Ginger (our furry child) in the back of the car and headed north. 24 hours later, we arrived safely at our good friends', the Askews, home in Austin. After watching our Mayor announce that the the storm had passed Galveston Island, we headed home. The 2.5 hour drive (yes, this is normal transit time!) was a strange one. There was practically nobody on the road - a stark contrast from the thousands that packed the freeways (which literally became parking lots) only 1 day before.

But, a week later, we called one of my best friends and our insurance provider, Klayre Lewis(Coady & Lewis insurance http://www.coadyandlewisinsurance.com/content.aspx - they are fabulous!), and said "raise 'em high"! That is a bill worth paying.

Back to the question... Again, if you carry a mortgage at all (that is to say, if you do not pay cash and have to use a 3rd party to finance your home), you'll be required to have insurance - all 3 types. Best recommendation I can make? Ask your Realtor about flood zones. Ask your Realtor for a local, reputable insurance provider who is familiar with the area in which you are purchasing (please, do not have your Kansas insurance provider call me about insuring your home on Tiki Island! I realize they may have seen all 3 of your kids grow up, learn how to drive, and go off to college, but please please please leave this one thing to somebody here in town!). Ask your Realtor what is required in your area - maybe it is earthquake, tornado, or cyclone insurance depending on where you are - just ask.

And, if you are in a situation where you can pay cash for a property, please look into getting insurance anyway. (That is, unless you want the thing to fall over because it will otherwise be bequeathed to your least favorite nephew who never did send you a thank you note for that etiquette book you gave him for graduation... That, of course, is a different story...)