Dealing with It: Texas’ Never Ending Hail Problem

By | July 6, 2018

  • July 6, 2018 at 10:23 am
    retired risk manager says:
    Well-loved. Like or Dislike:
    Thumb up 21
    Thumb down 2

    “Read their policy to see what is covered ….” I’m a CIC, have a degree in Insurance from UT-Austin and been a corporate risk manager. Even I have a tough time comparing coverage’s between companies. The worst mistake Texas ever made on homeowners insurance was moving away from the standard HO-B policy and allowing companies to file their own form. The average consumer just doesn’t have the ability to compare. And agents …… I know agents that have never read the policies they are trying to sell. The mistake that companies make is in concentration of risk. They seek upscale insureds but when they cover every other house on the street, and a storm hits, they moan about the loss.

    • July 6, 2018 at 3:12 pm
      Agent says:
      Like or Dislike:
      Thumb up 6
      Thumb down 1

      Roofing manufacturers need to make heavy shingles that will withstand baseball sized hail. Simple solution because hail will be here in Texas each and every spring and summer.

      • July 6, 2018 at 4:19 pm
        Rosenblatt says:
        Like or Dislike:
        Thumb up 8
        Thumb down 0

        Why would roofing manufacturers make such a product? Currently they’re kept in business because people keep having to buy new materials to fix or replace the damaged parts. Planned obsolescence and all.

      • July 8, 2018 at 12:45 pm
        Captain Planet says:
        Like or Dislike:
        Thumb up 3
        Thumb down 0

        God just needs to quit hating Texas. Take it easy, Agent, it’s just a joke.

        • July 10, 2018 at 2:53 pm
          Agent says:
          Like or Dislike:
          Thumb up 1
          Thumb down 1

          Don’t you have enough problems up there in Iowa killing millions of chickens? How did you dispose of the remains? The stench was probably terrible. Not a joke!

          • July 11, 2018 at 1:42 pm
            Captain Planet says:
            Like or Dislike:
            Thumb up 1
            Thumb down 0

            Not as bad as the dead people from fertilizer plant explosions. Not a joke!

          • July 12, 2018 at 1:27 pm
            Captain Planet says:
            Like or Dislike:
            Thumb up 0
            Thumb down 0

            Oh, and how to dispose of dead animals? Easy, kind of like I do to you…roast ’em.

      • July 8, 2018 at 2:48 pm
        retired risk manager says:
        Like or Dislike:
        Thumb up 1
        Thumb down 1

        Agent: I’m assuming that you have never seen baseball size hail, nor understand that there is hard hail and there is soft hail. Hard hail, 2 inch or larger, will do serious damage. Can go thru half inch plywood, much less OSB. Soft hail, shatters on impact. The only true hail “proof” roof is a metal roof on 3/4 inch plywood with 16″ on center rafters. And, given what I’ve seen over the years, there is hail that would laugh at that. Asphalt shingles are, in the Texas heat, a joke. Lose strength the day after installation. Sort of like the value of a new car when driven off the lot. That is why a 30 year shingle is really only good for 10 – 15 years.

        • July 10, 2018 at 2:58 pm
          Agent says:
          Like or Dislike:
          Thumb up 2
          Thumb down 0

          retired, you assume wrong. My own home was hit some years back by baseball sized hail and none of it went through. Yes, I had the heavy 30 year shingles put back on and and it still looks as good as new after several more storms. No question that the heavier shingles can absorb much more punishment.

          • July 11, 2018 at 9:11 am
            Captain Planet says:
            Like or Dislike:
            Thumb up 2
            Thumb down 0

            Oh hail no!

  • July 6, 2018 at 3:52 pm
    gerald ditsler says:
    Like or Dislike:
    Thumb up 0
    Thumb down 1

    roof mfg would be putting themselves out of business or reducing at least . Of course insurers could give discounts matching risk but not sure if that would work long term . Perhaps higher deductibles for w/h or acv is best solution

    • July 8, 2018 at 2:13 pm
      retired risk manager says:
      Like or Dislike:
      Thumb up 4
      Thumb down 0

      Higher deductibles or acv are unworkable. Why? The sorry state of the average homeowners finances. Most cannot scrape up $500 for an emergency car repair. It sounds cruel, but most homeowners should be renters. The whole concept of universal home ownership started right after WWII. It was a push by developers and the federal government. I know this will not be a popular suggestion, but home owners should be required to fund their deductible by a letter of credit, prepayment of the deductible or other guarantee. The company servicing the mortgage would be the natural place to hold the funds. If there is a claim, the money would be sent to the carrier. If no claim, the money sits and no additional deposit required. If there is a claim, a new deposit at renewal. So how would this work if the homeowner has no money ?? That is the $64,000 question. Irony intended. No matter what, homeowners should be required to somehow, in the event of a claim, to fund the deductible before the carrier is liable for payment. That would also stop the shady contractors offering to “take care of” the deductible.

      That’s the way retro and large deductible commercial policies work.

    • July 10, 2018 at 3:01 pm
      Agent says:
      Like or Dislike:
      Thumb up 1
      Thumb down 0

      In a country with 320 million people, I hardly think roofers will be put out of business and with growth in the economy, new construction will provide plenty of work. By the way, we already have higher deductibles in Texas with standard 1% for Wind & Hail and in some areas, 2% or higher.

      • July 11, 2018 at 9:12 am
        Captain Planet says:
        Like or Dislike:
        Thumb up 0
        Thumb down 1

        “and with growth in the economy”

        Thank you Obama!

  • July 9, 2018 at 11:14 pm
    Boonedoggle says:
    Like or Dislike:
    Thumb up 5
    Thumb down 1

    It would appear that there is sufficient loss experience in Texas for actuaries to accurately determine appropriate rates. The decision for insurers should therefore be very simple. If they can not acquire adequate rates, then they should go elsewhere to sell their policies.

  • October 31, 2018 at 7:22 pm
    Daniel Blumentritt says:
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    Interesting how rates are going up due to hail, when I know multiple people in the hail-repair business who have said business has been painfully down the past couple of years.



Add a Comment

Your email address will not be published. Required fields are marked *

*