The estimated loss from hurricane Harvey is about $30 billion in property damage. This has many worried that insurance companies will have to raise premiums to pay for all of that damage in Southeast Texas.
Much of the damage in Houston was caused by flooding, and most homeowners' policies don't cover flooding. Typically, you have to buy flood insurance through FEMA's National Flood Insurance Program. Therefore, the government will be responsible for covering that damage, not private insurers.
But if we do happen to see a premium increases in the coming months, another storm could be to blame.
"There have been two very catastrophic storms that have come specifically through the North Texas area," said Lynsie DeCet, from Independent Insurance Agents of Dallas. "In March and April we suffered significant hail damage. That could be more likely because hail is specifically addressed on an insurance policy. So, that has more of a direct relation to more private insurers and not the federal government who is issuing the national flood insurance."
If there's another storm that could cause our premiums to go up, DeCet said it's hurricane Irma, but the entire country would have to deal with those effects. This would depend on what kind of damage Irma brings to the U.S.
