As hurricane season starts, Houston-area residents may hear that the expected development of El Niño could help limit storm activity in the Atlantic. NOAA’s Climate Prediction Center has stated that El Niño is likely to emerge during May through July 2026, and NOAA’s hurricane outlook gives the 2026 Atlantic season a greater chance of being below normal. However, Texans know that “below normal” does not mean “no risk.” It only takes one storm in the Gulf, one heavy rain event, or one unexpected flood to create serious financial damage.
Property and casualty insurance is designed to protect the assets you have worked hard to build, including your home, vehicles, personal property, and liability exposure. The challenge is that many people only look at their coverage after something goes wrong. By then, it may be too late.
Premium Creep
One of the most common issues we see is premium creep. This happens when insurance premiums gradually increase over time, often without a meaningful change in coverage. A policy renews, the premium goes up, and many people accept the increase because switching carriers or reviewing the details feels like a hassle.
Over several years, these increases can become significant. The concern is not just that you may be paying more than necessary. The bigger issue is that you may be paying more while still having gaps in coverage.
Homeowners Insurance
For many families, their home is one of their largest assets, making homeowners insurance a key part of the overall financial plan. One of the most important items to review is dwelling coverage. This number should reflect the cost to rebuild your home, not necessarily the market value of the home. With rising labor and material costs, a policy that was sufficient several years ago may no longer provide what would be needed today.
Flood Insurance
As Houston residents, we are all familiar with the risks that come with hurricane season. Hurricane Harvey was a clear reminder that flooding can create significant damage, even for homeowners who believed they were properly insured. Standard homeowners’ insurance generally does not cover flood damage, which means a separate flood insurance policy may be needed to protect your home from rising water. KPRC Channel 2 News did a report just the other day regarding flood insurance in that there has been a 30% drop in covered buildings in Texas and that in at-risk Houston areas, up to 92% of homes are now uninsured as residents weigh increasing premiums against coverage. Unfortunately, should another significant storm happen in the future, those people may be “left out to dry” (pun intended) if impacted by the flooding. Even though the cost has gone up, if you do not currently have flood coverage, it still may be worth speaking with an insurance professional to determine whether a policy makes sense for your home. In our opinion, saying “Well, I didn’t flood during Harvey so I don’t need flood insurance” is for most cases not enough of a reason to transfer that full risk onto yourself by not having it.
Auto Insurance
Auto insurance is another area where coverage limits matter. State minimum liability limits may satisfy legal requirements, but they may not be enough to protect your assets after a serious accident. If you are responsible for an accident that causes significant injuries, the damages could exceed your policy limits. Without enough liability coverage, your personal assets may be exposed.
Umbrella Liability Insurance
Umbrella liability insurance provides an additional layer of protection above your homeowners and auto policies. If a serious car accident or injury on your property exceeds the liability limits on your existing policies, an umbrella policy can help cover claims that go beyond those base limits. For many families, this can be one of the most cost-effective ways to protect against larger liability claims.
The Role of a Broker
This is where a good insurance broker can be valuable. A broker can review your current policies, compare coverage across different carriers, and help identify gaps that may not be obvious from simply looking at the premium. Two policies can have similar costs but provide very different levels of protection, so it is important to understand what you are paying for.
A broker can also help determine whether your coverage still fits your current situation. If your home value has changed, construction costs have increased, you added a teen driver, purchased a new vehicle, or accumulated more assets, your old policy limits may no longer be appropriate. The goal is not always to find the cheapest policy. The goal is to find coverage that properly protects your financial life at a reasonable cost.
At WJ Interests, we do not sell property and casualty insurance, but we do believe it plays an important role in protecting your financial plan. As hurricane season approaches, now is a good time to review your policies and make sure your coverage still matches your needs.
If you do not know where to start, we can help refer you to a broker who can review your current coverage and help determine whether any changes should be considered.
Key Takeaways
Don’t assume a quieter hurricane season means no risk.
Review your insurance coverage regularly.
Make sure your home, flood, and auto coverage are adequate.
Consider umbrella insurance for added protection.
Work with a broker to identify gaps and compare options.
PAST PERFORMANCE IS NOT A GUARANTEE OF CURRENT OR FUTURE RESULTS. Examples of historical information included in this presentation do not, nor are they intended to, constitute a promise of similar future results. Specific client portfolio allocations, risks and returns can and may deviate from these examples depending on accounts and types of investments available through each account. Future market views by WJ Interests, LLC may vary significantly from the historical examples presented herein and no one receiving this summary should assume that WJ Interests, LLC will be able to replicate successful views in the future.