This Texas grandmother’s insurance coverage lapsed just before her home was destroyed during Hurricane Beryl
Like many Americans, Phyllis Yankey of Montgomery County, Texas, wanted to live closer to her grandchildren. So she was thrilled when her son told her the home right next door to him was for sale.
Yankey quickly sold her condo in Kentucky, paid cash for the fixer-upper, and started renovations. She used the same insurance company she's used for the last 52 years to buy a homeowner's insurance policy After the siding went up and the floors went in, she got a call from the insurance company — due to previous damage, the house was uninsurable, and they canceled the policy.
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Then came Hurricane Beryl. In July, the category 1 hurricane hit Texas and knocked two huge trees down in Yankey's yard. The first destroyed her home, and the second destroyed the garage where Yankey was storing her belongings during the renovations. Because her homeowner's policy had been canceled, Yankey had no recourse to recover her losses.
“We all just shed a lot of tears. It was devastating,” Yankey told KHOU 11.
Starting over on her own
Yankey found out that since she had taken the house down to the studs, she needed a policy called builder’s risk insurance. This type of policy protects buildings under construction from property damage caused by fire, lightning, explosions, theft, and hurricanes.
She called several insurers but was unable to secure a policy for the property.
“It’s always the same thing — when it goes to underwriters, they say they won’t insure it. And I said, ‘Well, am I the first person that’s ever remodeled a house in poor condition?’” Yankey says.
With no other options, she raced to finish the renovation so she could purchase a traditional homeowners policy. On July 7, just one week away from completing the upgrades, Hurricane Beryl knocked down the trees that then destroyed her new home and garage.
After spending her life savings to renovate the house, Yankey has had to start over from scratch.
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Protect yourself and your home
Yankey hopes by sharing her story she can help prevent others from facing the same situation. Fortunately, there are several steps you can take to protect yourself.
First, make sure your insurance agent understands your plans to remodel or renovate and be clear about when you plan to move into the home. Had Yankey known to tell her insurance agent about her plans, she may have realized she needed different coverage before renovations began.
After you start a new home insurance policy, wait at least 30 days to begin renovations. This gives your insurance company time to thoroughly review your policy so you don't get a surprise cancellation in the middle of construction.
Finally, regularly review your insurance policies to make sure your coverage aligns with your current situation. For example, after making updates or additions to your home, you may need to update your insurance valuation. Taking these steps will provide additional peace of mind and limit the risk of insurance lapses.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.