Before you purchase homeowners insurance for your Texas house, there are a few important things you should know about the coverage you are buying. Following are 3 things you should know prior to buying Texas homeowners insurance.
- Basic Policies – There are 3 basic types of Texas homeowners insurance policies that provide a standard level of coverage. They are HO-A, HO-B and HO-C. An HO-A policy provides the lowest level of coverage. It generally provides a limited cash value for loss and damage to your home and its contents. An HO-B policy is a step up and may provide replacement cost coverage for all forms of damage or loss except those specifically excluded in the policy. The HO-C policy provides even more complete coverage and are also the highest price of the 3 types of policies.
- Basic Coverage – Most Texas homeowners policies provide the following coverage. They cover losses caused by fire and lightning, smoke, explosion, theft, vandalism and malicious mischief, riot and civil commotion, aircraft and vehicles, windstorm, hurricane and hail (you may need a separate hurricane rider) and sudden and accidental water damage. Areas that generally are not covered include loss caused by flooding, earthquake, termites, insects, rats or mice, wind or hail damage to trees and shrubs, losses in a house that has been vacant for 60 days or longer, wear and tear or maintenance and water damage resulting from continuous and repeated seepage.
- Personal Property – When you buy a standard Texas homeowners policy, your personal possessions are generally covered up to 40% of the amount of the dwelling coverage. If you do not feel that is adequate, you can get higher coverage by paying a higher premium.
A home is one of the largest investments that any one will make over a life time, and Texas homeowners insurance is one of those “must haves” to protect the investment. It is not necessary to have once the home is paid in full. However, a person needs to think twice before dropping their policy. Before a purchase is made, a consumer needs to do a Texas insurance comparison. Never assume they are all the same. Unlike autos, homes go up in value in a normal economy, find a state of Texas insurance policy that meets legal requirements and a provides peace of mind. Consider these three things:
- Home insurance in Texas needs to be purchased from a company with a good reputation in the state. Which companies have the least complaints? Your independent Texas insurance agent will provide you a cross comparison. Do not become a victim of surprise. Get a grasp on the Texas insurance market for home buyers.
- Texas homeowners insurance will have to meet a number of requirements to protect the lenders investment. A person needs to consider the potential hazards of an area if the bank requires extra Texas insurance policy coverage. Do you really want to buy a home in a flood zone or in tornado alley? The cheapest insurance in Texas may not provide the best coverage.
- Know what Texas home insurance covers and does not cover. You will need a good policy with effective coverage for liability and natural disasters. Use the banks and homeowner insurance companies to raise a red flag for both home buying, and homeowner insurance purchases. Texas insurance rates maybe higher in a certain region such as in coastal areas, earthquake fault lines, high crime, and other locations.
For first-time homeowners, it may be intimidating to find information on homeowners insurance and comparing coverage rates. This is to help assist you to overcome that anxiety.
To assist in making a personal decision about insurance coverage for your home, you need to understand the basics. The following two terms are essential elements to come to terms with and grasp in order to make an educated decision.
- Homeowners insurance: A policy taken out on your residence. Usually, the policy covers all or a portion of the repair or replacement costs if your home is damaged or destroyed. But, just like car insurance, you can have “riders” added to your policy. These include such things as medical coverage (this is optional on some homeowners insurance policies), coverage for unattached buildings or structures (tool sheds, barns, or similar buildings), and other things.
- Premium: The amount you pay for your homeowners insurance policy. How much that figure is depends on the amount of coverage you purchase. How much coverage you need depends on a number of things. For example, if you still have a mortgage on your home, your mortgage company may require you to carry a certain amount of coverage. If your home is paid off, and is an older home, you may be able to get by with less coverage.
If you are shopping for Texas homeowners insurance for the first time, you may be wondering what information you need to start speaking to an agent or doing online research. Below is a list of the information you’ll most likely need when getting ready to obtain homeowners insurance:
- The county and zip code in which you live. Homeowners insurance policy rates and coverage can vary depending on where you live.
- How many (if any) homeowners insurance claims you’ve filed within the past few years and for what. How many years can vary between companies. Some only go back three years, others may go back as many as five. In addition, the number of years since the claim may vary depending on the type of claim.
- Your credit rating. This can factor in on your premium rate. If you’re not sure what your credit rating is, you may want to check that before you start shopping for insurance, so if there are any issues, you can clear them up so they won’t affect your credit rating or premium amount.
- Your coverage amount. How much coverage you want usually depends on your home’s value. You want enough coverage to replace it wholly or at least in a great part should it be totally destroyed.
- How old your home is and the construction materials in the building of it. Both of these can have an impact on your premium amount.
If the agent or company needs any more information, you’ll be asked to furnish it and given time to do so.
Look to see who is everyone else using.
A savvy shopper can get confused with all of the choices as they compare Texas insurance rates when they are looking at buying a home. In order to sift through all of the companies trying buy your attention, find out from your friends, and family members who are the most the most popular Texas insurance providers. From their referrals, find an independent Texas insurance agent who contracts with more than one company. You will be able to find one from this list to help you through the insurance maze.
Look to see what has to be covered.
All providers must meet each Texas liability requirement to sell homeowners insurance to consumers. Your finance company will require additional coverage to protect their investment.Your independent Texas insurance agent will know how to read through the jargon that can be difficult to understand while helping you shop Texas insurance rates from more than one provider.
Look to see what will save you money while giving you a peace of mind.
Do not buy the first homeowners policy you see! Do a Texas insurance comparison. You will find ways to put money back in your pocket. For example, Texas insurance companies will give you a break if you add a little security, and safety features to your home. Install burglar alarms, deadbolt locks, and smoke detectors. Save a few cents while adding a little peace of mind. Avoid buying in high crime areas, or in subdivisions built in flood zones. Your geographical location can raise your premium. Do not look for cheap Texas insurance, look for a great carrier who offers the most discounts. Your independent Texas insurance agent will help you save money, and let your pocketbook breath a little easier.
Paying your house off is a major feat and is something to celebrate. Now that you’ve have paid it off, you may be wondering if the value of the homeowners insurance premium is worth the cost. Maybe you’ve never have had to file a claim with your insurance company in Texas in over the past 15, 20, or 30 years! What are the risks in dropping your insurance? In our day, there are so many factors that need to be considered before making a decision to cancel your Texas homeowners insurance. What is the value of the house? If the house does not have much value and you were going to tear it down to rebuild in the next few years, go for it!
On the other hand, can you afford not to have home insurance in Texas? Do you have enough funds on your own to rebuild your house if you didn’t have Texas insurance coverage? With the major weather changes in the last decade across the country, who can predict what will happen? Forest fires, tornadoes and floods have been rampant. Charitable organizations across the country seem to stay in business rebuilding and giving aid to those who’ve lost their homes in under devastating circumstances.
The question should be, do I have enough Texas insurance? Am I covered for floods, tornadoes, fires, and other things that could develop without warning? Unless you have the money to rebuild, and you do not mind taking a gamble, go for it! You can save a few hundred dollars a year. However, if insurance is all you pay toward your house every month it’s a minimal expense that may be worth keeping. You have home repairs that will you cost more during the lifetime of the home. A little insurance would seem to give a piece of mind. For the most of us, budgeting our homeowners insurance into our repair budget for the year will give the assurance that we are covered in the event of a major disaster. The best option most have would be to compare Texas insurance rates to see if you are getting the best bang for the buck.