The Galveston County Daily News

Hurricane Ike, which packed 110 mph winds and storm surges of up to 20 feet in some areas, caused an estimated $10 billion to $15 billion in insured losses, according to trade group Insurance Council of Texas.

Hurricane Ike pushed monstrous storm surge across the island and low-lying parts of the mainland.

Only about 60,000 Galveston County property owners had flood insurance when Ike struck.

And hundreds of Galveston County consumers are battling with insurers about whether wind or water from the storm damaged their homes and businesses.

First, and most importantly, homeowner’s insurance does not cover windstorm damage or flood.

The federal government underwrites flood policies through the National Flood Insurance Program.

And most private insurers have stopped selling windstorm policies in risky coastal areas, including the island, where coverage is only available through the Texas Windstorm Insurance Association.

About 90,000 county residents obtain windstorm insurance through the state-created Texas Windstorm Insurance Association.

Flood insurance is available only through the National Flood Insurance Program.

We talked to Garry Kaufman, president of Galveston Insurance Associates and also a Texas Windstorm Insurance Association board member about lessons learned and what you should know about insurance.

Q: Because of the severe storm surge by Hurricane Ike, are agents working to more strongly advise consumers to buy both flood and windstorm insurance?

A: Agents have traditionally been very good about recommending flood and windstorm coverage in Tier 1, but I do believe flood insurance will be looked on differently because of Ike’s surge.

Ike proved that no matter where you live in our area, you are at risk of flooding.

Q: What types of items aren’t covered by flood insurance?

A: This depends on the building’s location, year of construction, elevation and other factors.

The one area consumers need to be more aware of is the area under an elevated structure.

Homes are built on pilings for a reason. The area below the first elevated living floor is designed to allow water to flow beneath the structure; therefore, there is minimal coverage there.

Some examples of items not covered are: carpeting, personal property and finished walls.

Consumers need to remember that flood coverage is written primarily in flood hazard zones where the chance for flooding is higher.

The policy was not designed to provide a wide range of coverage.

Q: How should consumers prepare insurance information before and after the storm?

A: If I could point to one area where homeowners and business owners could have prepared better, it would be in documenting their contents and inventory.

Floodwaters are very devastating and create a huge mess.

Adjusters need documentation beyond just pictures of the damaged items.

Having pictures or video of all of the contents of a home or business before the storm is critical.

Photographs, receipts, model numbers, manufacturers, etc., should all be documented and stored in a manner that they can be retrieved after a storm.

This was such a big deal for our clients that GIA partnered with eProoft, a company that provides a computer-based inventory documentation system.

Their service allows the consumer to upload pictures, receipts, wills, etc., onto their server for access from anywhere.

After Ike, we have made this service available to all of our clients free of charge.

Q: Is it more difficult to get flood or windstorm insurance since Hurricane Ike?

A: In regard to TWIA coverage, if properties remain insured during repairs there is not a problem as long as the repairs meet code.

If policies are canceled, new ones cannot be purchased until the damage has been repaired to code.

NFIP flood policies can be purchased as long as they meet underwriting guidelines.

Excess wind and flood can still be purchased, but the market for this coverage fluctuates.

Q: Is everyone in the county, including renters, eligible for flood and windstorm insurance?

A: If the community participates in the NFIP program, then residents are eligible for flood coverage unless the property is located in a COBRA zone.

Everyone in Tier 1 is eligible for windstorm coverage through TWIA if their structure has the windstorm certification or they pay a surcharge. Of course, both TWIA and NFIP have underwriting guidelines that must be met to be eligible for coverage.