Most people think they just need enough insurance to cover what their home or business is worth. But insurance companies care about something different: “insurable value.” That’s the cost to fully rebuild your property—not how much you paid or could sell it for. 1. What Is Insurable Value (or Replacement Cost)? Market value is what someone might pay to buy your property today, including the land and neighborhood. Insurable value is what it would cost to rebuild the home if it was destroyed—materials, labor, permits, and construction—not the land. Example: A house in a fancy neighborhood might be worth $300,000 (market), but rebuilding it may cost $250,000 (insurance) because you don’t pay to “replace” the land. 2. Why Insurers Say No to Lower Values If you ask to cover your home for less than its insurable (rebuild) cost, carriers often say no: Underwriting rules: Insurance underwriters use your numbers to assess risk and set prices. If they don’t match reality, the coverage can’t work . Co-insurance penalties: Many policies include a rule that you must insure at least 80–100% of your insurable value. If you don’t, you pay more out of pocket when a claim happens . Avoiding surprises at claim time: Insurance is supposed to rebuild your home. If you underinsure, you might not have enough money if disaster strikes. 3. What Exactly Counts Toward Insurable Value? The structure: walls, roof, flooring, plumbing, wiring, HVAC—even demolition and cleanup after a loss . Excluded items: land value, permanent landscaping, or underground utilities aren’t included . Add-ons: up‑to‑code upgrades, permits, and service fees are part of the rebuild cost . 4. Why Some People Want Lower Coverage It’s common for clients to ask for lower values to: Pay less in premiums. Lock in a cheaper policy. But this backfires if your rebuild cost is higher than your coverage limit. 5. What Happens If You Underinsure? Higher out-of-pocket costs: You pay the difference between what’s needed to rebuild and what the policy covers. Co-insurance penalty: Carriers reduce your payout based on how much you’re underinsured. Claim delays, disputes, or denials: You may face arguments or lower payouts when rebuilding . Difficulty getting claims approved: If your coverage doesn’t match the rebuild cost, carriers may refuse a claim altogether. 6. How to Make Sure You’re Fully Covered Use reliable valuation tools: Work with agents or appraisers to calculate rebuild cost—using systems like Marshall & Swift or hiring a pro . Add a policy endorsement: Terms like “Agreed Value” or “Guaranteed Replacement Cost” ensure full payout, even if costs rise during a rebuild. Check annually: Construction costs change. Review your coverage each year to reflect any updates or inflation. Report upgrades: Adding a new bathroom, renovating, or changing roofing materials can raise your rebuild cost—let your agent know. ✅ Final Takeaway Insuring based on insurable value, not market value, ensures you’ll have enough coverage to rebuild your home or business if something happens. When carriers reject lowering your coverage, it’s for your own protection—it ensures you don’t end up with a policy that won’t fully rebuild your property. Have questions or want help reviewing your policy’s insurable value? Reach out — we’re here to guide you. 📞 361‑334‑0539 🌐 www.ohanainsured.com

Have you heard of the Texas FAIR Plan? The Texas FAIR Plan Association (TFPA) acts as an "insurer of last resort" for residential property insurance in Texas. It was established to ensure that eligible Texans who cannot obtain coverage through the traditional private insurance market still have access to essential property insurance. How to Qualify for the Texas FAIR Plan Qualifying for the Texas FAIR Plan isn't as simple as just wanting it. It's a specific process with strict requirements: Declinations from Private Insurers You must have been denied coverage by at least two insurance companies that are actively writing residential property insurance policies in Texas. This demonstrates your inability to secure coverage in the voluntary market. You'll need to provide proof of these declinations. No Other Comparable Offer You cannot have a current homeowners policy, a renewal offer, or a valid offer of comparable residential property insurance from another licensed Texas insurer. Property Eligibility Your property must meet certain underwriting standards. It cannot be condemned, vacant, or in disrepair. There are also restrictions on properties with excessive or unusual liability exposures (e.g., certain dangerous animals, unfenced pools/trampolines). Claims History Generally, you cannot have more than eight paid insurance claims (excluding glass claims) within the past three years. No Arson/Fraud Convictions You cannot have a conviction for arson, fraud, or any other insurance-related offense. Agent Application You cannot apply directly to the FAIR Plan. Applications must be submitted through a licensed property and casualty agent like Ohana Insurance Group, LLC. Benefits of the Texas FAIR Plan While it's a "last resort," the Texas FAIR Plan offers significant benefits for those who qualify: Access to Coverage The primary benefit is access to essential property insurance when it's otherwise unavailable. This provides a crucial safety net for homeowners. Basic Protection It offers coverage for perils like fire, lightning, sudden and accidental smoke damage, windstorm and hail (with exceptions in certain coastal areas), explosion, aircraft and vehicles, riot and civil commotion, and theft. Liability Coverage Homeowners, condo, and tenant policies typically include personal liability and medical payments coverage for injuries to others on your property. Various Policy Types The FAIR Plan offers different policy types, including homeowners, dwelling, condominium, and tenant (renters) insurance. Downsides of the Texas FAIR Plan It's important to be aware of the limitations and potential drawbacks of the Texas FAIR Plan: Higher Premiums Policies through the FAIR Plan are generally more expensive than what you would find in the voluntary market, reflecting the higher risk associated with the properties it insures. Limited Coverage While it provides essential coverage, it is not as comprehensive as what's typically available from private insurers. For instance, it may not cover damage from falling objects (like trees), building collapse, glass breakage, or the weight of ice/snow as part of its basic policy. Actual Cash Value for Personal Property Personal property coverage often pays out at actual cash value (replacement cost minus depreciation), unless you opt for replacement cost coverage at an additional premium on certain policy types. Coastal Area Restrictions If you live in a designated catastrophe area (e.g., certain coastal counties), windstorm, hurricane, and hail coverage may be excluded or require a separate policy through the Texas Windstorm Insurance Association (TWIA). Reapplication Requirement Policyholders are required to reapply for coverage in the voluntary market every two years, reinforcing its role as temporary coverage. Claims Processing Some policyholders have reported challenges with claims processing and communication, particularly during widespread catastrophic events. The Texas FAIR Plan serves a vital role in our state's insurance landscape. While it may not be your first choice, understanding its purpose, eligibility, and limitations is crucial for any Texas property owner facing challenges in the private insurance market. If you believe the Texas FAIR Plan might be an option for you, contact Ohana Insurance Group. We're here to guide you through the process.

Today marks the official first day of the 2025 Hurricane Season, it’s imperative to look beyond the standard checklists. While stocking up on essentials and securing your property are fundamental steps, there are additional, often overlooked measures that can significantly impact your safety and financial well-being. At Ohana Insurance Group, we emphasize a comprehensive approach to hurricane preparedness, integrating both practical actions and insurance considerations! 1. Understand the Nuances of Your Insurance Policies Many homeowners assume their standard insurance covers all hurricane-related damages. However, it’s essential to recognize that: • Flood Damage: Standard homeowners insurance typically does not cover flood damage. A separate flood insurance policy is necessary, and it usually has a 30-day waiting period before it becomes effective. • Windstorm Coverage: In coastal areas, windstorm damage might require an additional policy or endorsement. Ensure you have both wind and flood coverages in place. • Policy Limits and Deductibles: Review your policy limits to confirm they reflect current construction costs, especially with recent inflation. Also, understand your deductibles, particularly if you have a separate hurricane deductible. 2. Document Your Property Thoroughly In the event of a claim, having detailed records can expedite the process: • Home Inventory: Create a comprehensive inventory of your belongings, including photos, receipts, and serial numbers. This documentation is invaluable when filing claims. • Digital Backups: Store copies of important documents and your home inventory in a secure cloud service, ensuring access even if physical copies are lost. 3. Assess and Reinforce Vulnerable Areas of Your Home Beyond boarding up windows, consider: • Roof Inspection: Ensure your roof is in good condition. Address any loose shingles or potential leak points. • Garage Doors: Reinforce garage doors, as they can be a weak point during high winds. • Water Intrusion Monitoring: Install water sensors in basements or ground-level areas to detect leaks early, minimizing potential damage. 4. Secure Financial Preparedness Financial resilience is as crucial as physical preparedness: • Emergency Funds: Keep a small amount of cash on hand, as power outages can render ATMs and card readers inoperable. • Review Financial Documents: Ensure all financial documents, including insurance policies, are up-to-date and accessible. • Understand Coverage for Additional Living Expenses: If your home becomes uninhabitable, know what your policy covers regarding temporary housing and related expenses. 5. Plan for Post-Storm Recovery Preparation doesn’t end when the storm does: • Contractor Contacts: Have a list of trusted contractors for potential repairs, as demand surges post-storm. • Claim Filing: Understand the process for filing insurance claims, including necessary documentation and timelines. • Prevent Further Damage: Take reasonable steps to prevent additional damage after the storm, as most policies require this to avoid claim denial. Final Thoughts Hurricane preparedness extends beyond the obvious. By addressing these often-overlooked areas, you not only enhance your safety but also ensure a smoother recovery process. At Ohana Insurance Group, we’re committed to guiding you through comprehensive preparedness strategies tailored to your unique needs. Contact us today to review your policies and ensure you’re fully prepared. 📞 361-334-0539 🌐 www.ohanainsured.com 📍 Corpus Christi | Houston

Premium Financing: A Practical Solution for Managing Insurance Costs At Ohana Insurance Group, we understand that managing substantial insurance premiums can strain your cash flow. Premium financing offers a strategic approach to maintain necessary coverage without the burden of large upfront payments. What Is Premium Financing? Premium financing involves obtaining a short-term loan to pay for insurance premiums, allowing policyholders to spread the cost over time. This method is particularly beneficial for businesses and individuals who prefer to retain liquidity for other investments or operational needs. Benefits of Premium Financing • Improved Cash Flow: By financing premiums, you can preserve working capital for other business activities or personal investments. • Access to Comprehensive Coverage: Financing enables you to obtain the necessary insurance coverage without compromising due to immediate budget constraints. • Flexible Payment Terms: Premium financing arrangements often offer customizable payment plans to suit your financial situation. Partnering with IPFS Ohana Insurance Group collaborates with Imperial PFS (IPFS), a leader in premium financing solutions. IPFS provides: • Flexible Financing Options: Including plans such as 25% down with nine monthly payments or 15% down with ten monthly payments. • Streamlined Processes: Their platform offers online payment options, eSignature capabilities, and real-time account management. • Experience and Reliability: With over 45 years in the industry, IPFS has a proven track record of supporting clients’ financing needs. Is Premium Financing Right for You? Premium financing is suitable for those who: • Require significant insurance coverage but prefer to maintain liquidity. • Seek to align insurance payments with cash flow cycles. • Desire flexible payment structures without compromising on coverage. Final Thoughts Premium financing is a practical tool to manage insurance expenses effectively. At Ohana Insurance Group, we are committed to providing solutions that align with your financial goals. Contact us today to explore how premium financing can benefit you. 📞 361-334-0539 🌐 www.ohanainsured.com 📍 Corpus Christi | Houston

For businesses operating within the diverse economic landscape of Texas, encompassing major metropolitan areas such as Houston, Austin, Dallas-Fort Worth, San Antonio, and Corpus Christi a robust understanding of essential business insurance is paramount. Ohana Insurance Group, LLC, offers insights into fundamental coverages designed to protect your organization's continuity and financial stability. General Liability Insurance: Mitigating Operational Risks General liability insurance serves as a foundational element of risk management, providing protection against claims alleging bodily injury or property damage arising from routine business activities. Illustrative Scenario: Within a Dallas-based retail environment, should a customer sustain injuries due to a slip and fall, general liability coverage can address resultant medical expenses and potential legal defense costs. Statewide Relevance: The potential for such incidents transcends geographical boundaries within Texas. Whether your operations are based in Austin's service sector, Houston's industrial domain, or San Antonio's commercial districts, this coverage offers critical financial safeguards. Commercial Property Insurance: Preserving Tangible Assets Businesses that own or lease physical premises necessitate commercial property insurance to mitigate financial losses stemming from damage to buildings, equipment, inventory, and other business-related property due to covered perils, including fire, wind, and theft. Illustrative Scenario: If a Fort Worth-based office building incurs roof damage due to a severe hailstorm, commercial property insurance can provide resources for repair. Statewide Relevance: From the logistical hubs of Houston to the commercial centers of Austin, the physical assets of your enterprise are integral to its function. This insurance facilitates recovery following a covered loss. Commercial Auto Insurance: Addressing Vehicular Exposures For businesses utilizing vehicles, whether a single vehicle for deliveries within San Antonio or a fleet operating statewide, commercial auto insurance is indispensable. This coverage addresses liabilities arising from accidents involving company-owned or operated vehicles. Illustrative Scenario: Should an employee operating a company vehicle in Houston be involved in a collision, commercial auto insurance can cover associated damage and injury costs. Statewide Relevance: Given the extensive geography of Texas, many businesses rely on vehicular transport. This coverage ensures financial protection against vehicular incidents. Workers' Compensation Insurance: Supporting Workforce Welfare Employers with personnel are typically required to carry Workers' Compensation insurance, providing benefits to employees who experience work-related injuries or illnesses. This coverage can include medical expenses and a portion of lost wages. Illustrative Scenario: If an employee at an Austin-based technology firm sustains a back injury while handling equipment, Workers' Compensation can provide necessary support. Statewide Relevance: Protecting the well-being of your workforce is not only ethically sound but often legally mandated within Texas. This coverage supports your employees during times of occupational injury or illness. Additional Coverage Considerations: Depending on the specific nature of your business operations throughout Texas, supplementary coverages may be advisable, such as: Professional Liability Insurance (Errors and Omissions): Pertinent for entities providing professional services. Cyber Liability Insurance: Increasingly crucial for organizations managing sensitive digital information. Your Insurance Partner in Texas Navigating the complexities of business insurance requires informed guidance. Ohana Insurance Group, LLC, while headquartered in Houston, is committed to assisting businesses across all major Texas cities in identifying and securing appropriate insurance solutions tailored to their unique risk profiles. To discuss your business insurance requirements, please contact us or visit our website at www.ohanainsured.com.

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Houston presents unique challenges and opportunities when it comes to protecting property and assets. For today's blog, we want to share some key topics that are top of mind for us and should be for you too. The Ever-Present Reality: Severe Weather in Houston Houston is a fantastic place to live and work, but we can't ignore the reality of our weather. From hurricane season to intense thunderstorms and even the occasional flooding event, severe weather is a consistent factor in our insurance landscape. Rising Frequency and Intensity: We've observed an increase in the frequency and intensity of these events. This directly impacts insurance rates and the availability of certain coverages. Understanding your policy's protection against wind, hail, and flood is more critical than ever. Are you confident in your current coverage? Flood Insurance: Standard homeowner's policies typically do not cover flood damage. Given Houston's history, having a separate flood insurance policy, whether through the National Flood Insurance Program (NFIP) or a private carrier, is a crucial consideration for many. Let's discuss your flood risk and options. The Tightening Market: Property Insurance Challenges We're seeing a trend across Texas, including Houston, of a hardening property insurance market. This means: Increased Premiums: Due to the factors mentioned above (severe weather, increased claims, reinsurance costs), you might be experiencing higher premiums upon renewal. This isn't unique to you; it's a broader market trend. Stricter Underwriting: Insurance companies are becoming more selective about the properties they insure. This could mean closer scrutiny of a property's age, condition, and claims history. Coverage Adjustments: You might see changes in the terms and conditions of your policy, such as higher deductibles or limitations on certain coverages. Liability in Focus: Protecting Your Assets Property and casualty insurance isn't just about physical damage; it's also about protecting you from liability claims. Homeowner's Liability: This coverage protects you if someone is injured on your property. With Houston's active lifestyle and community engagement, ensuring you have adequate liability limits is essential. Business Liability: For our fellow business owners in Houston, general liability coverage is vital to protect against claims of bodily injury or property damage arising from your operations. Staying Ahead: What You Can Do While these challenges exist, there are proactive steps you can take: Regular Policy Review: Schedule a review of your property and casualty policies with us at Ohana Insurance Group. We can ensure your coverage aligns with your current needs and the evolving risks in Houston. Mitigation Measures: Taking steps to protect your property, such as installing storm shutters, maintaining your roof, and elevating appliances in flood-prone areas, can sometimes help with insurance costs and, more importantly, prevent damage. Understanding Your Coverage: Don't wait until a loss occurs to understand what your policy covers. We're here to answer your questions and clarify any aspects of your insurance. Houston, we have a problem... Ohana Insurance Group, LLC has the solutions. Since January 1, 2023, Ohana Insurance Group, LLC has been committed to serving the Houston community with personalized insurance solutions. We leverage our extensive experience and backgrounds in our respective markets to help you navigate these property and casualty topics and challenges. Ready to discuss your insurance needs? Contact us today!

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