Texas Is Booming! Make Sure You’re Properly Covered

By theadmin

From the largest convenience store in the world (Buc-ee’s) to one of the world’s largest HD LED video board (Texas Motor Speedway’s “Big Hoss”), Texas is a state where everything is bigger. Including an ever-growing population.

According to a recent CNNMoney article, “More Americans moved to Texas in recent years than any other state. A net gain of more than 387,000 in the latest Census for 2013.” With emerging business sectors, an affordable housing market, mild temperatures, and friendly people, it’s no wonder the Lone Star State is seeing such growth.

This increase shines bright on the big cities in Texas — Houston, Dallas, San Antonio, and Austin. All of these spots have seen population surges, placing in the 2014 Forbes list of America’s 20 Fastest-Growing Cities.

Some smaller metro areas have seen even faster growth. Take oil-rich Odessa. According to a U.S. Census Bureau estimate from earlier this year, the West Texas city’s population grew 4 percent. Not to be outdone, nearby Midland recorded a 3.56 percent gain. San Marcos took the top spot with an increase of 8 percent.

The influx of people relocating to Texas naturally affects the housing market, which leads to insurance coverage considerations. “It’s important to have an appropriate amount of insurance for your home so that it can be rebuilt to the same level of quality if a major loss occurs,” says Steve Hartgrove, Texas Farm Bureau Insurance agency manager in Harris County. “You may be perplexed by the gap between the current market value and the estimated replacement cost for your home. Market Value — the price at which your home may sell today, is not the same as Replacement Cost — the price to repair or rebuild your entire home if it is severely damaged.”

Erin Hartgrove, another Texas Farm Bureau Insurance Agent in Harris County, adds that if you’re building a home, you need to think about flood insurance. “Regardless of if you live in a flood zone or not, if you are doing new construction in an area and proper drainage is not put in or tested, then you are at a risk of flooding,” he says. “It’s not a matter of if, but when, a major rainstorm comes and then you find out that you should have had a flood policy in place.”

Traffic is another concern that comes into play when populations surge. “More people means more cars, more collisions, potential for more crime, and consequently more risk,” says Chris Forgey, a Texas Farm Bureau Insurance Agent in Tarrant County. “That’s why auto rates in bigger cities can be higher than in rural areas. There’s just more activity which naturally equates to a higher potential for claims. These factors can contribute to premium increases.”

It’s also a good idea to review one’s life insurance policy as populations boom. “In a heavily populated area such as Dallas/Fort Worth, Houston, or any other major metropolitan area in Texas experiencing significant growth, there is simply more risk,” Forgey says. “With all the road construction plus the hundreds of thousands of newcomers driving in these areas (many of them driving in a large city for the first time), we have a formula for more road deaths. Life insurance is too important to overlook or put off anyway, but with increased risk should come increased awareness and concern for protecting your family and loved ones.”