Thousands of homes are damaged, or destroyed, when various perils strike all across the United States. Homeowners know that owning property includes risks that can create financial hardship. Location can increase the potential for damage or loss when earthquakes, floods, fire, tornadoes and hurricanes strike. Widespread loss places the insurance companies at risk of insolvency without assistance from the federal government.
Expanded homeowners insurance coverage guidelines would come with a significant change in the partnership between owners and insurers:
- Risk models would be required to assess various risks in all locations from coastlines to the heartland. Insurance companies would require rate increases.
- Homeowners would perform mitigation efforts through building codes, land management and refusal to build in high-risk areas.
- Government entities would have to participate to replace infrastructure and offer high-risk flood and earthquake insurance in certain areas.
Changes to the risk management practices on the part of owners and first responders in every locality would be required to reduce loss. Insurance companies, like Travelers, will never accept all responsibility for expanding coverage without some concessions from owners and government agencies.
For more information about home insurance and auto insurance in Texas, contact Mike Leonard Insurance located in Carrollton to get a quote, today.