The Ins And Outs Of Houston Homeowners Insurance

April 26, 2015

by — Posted in Homeowners Insurance Houston

Homeowners Insurance in Houston is important because it protects your home from many types of damage. One of the biggest mistakes that Houston residents make is purchasing the wrong type of coverage for their property.

The type of policy that you choose should reflect the type of property you live in. By choosing the correct type of coverage, you can avoid overpaying for Homeowners Insurance in Houston.

Choosing a Policy and Knowing What Is Covered

Many Houston residents are renting their dwelling or looking for coverage on a primary residence. Some residents need Houston homeowners insurance for a secondary home.

The way that you answer these questions will help to determine the type of coverage that you need. When shopping for insurance, it’s very important to know what your policy covers. You need to find out if the construction of your home is covered for the cash or replacement value of the home.

In some cases, a home might be covered at replacement cost and not cash value, and there is a difference between the two. You should also find out if your Homeowners Insurance in Houston covers extra living expenses.

Additional living expenses are costs associated with temporary housing or food, which might be needed while your damaged home is being repaired or replaced. Another question to ask is whether or not your policy provides liability protection, which covers you for injuries sustained by people you’re liable for.

How Much Coverage Should You Buy?

When shopping for Homeowners Insurance in Houston, you might not know how much insurance you should buy. The ideal amount of coverage is just enough to cover the total cost of replacing your home.

A mistake that many Houston residents make is calculating the cost to replace their land and using this amount to help determine how much coverage to buy.

Since it’s very unlikely that you’ll need to replace your land, you should not calculate the value of your land into your coverage. It’s also not a good idea to base the amount of coverage you purchase on the amount that you paid for your property.

The problem with using the amount you paid for the property is the fact that the cost to rebuild your home could be significantly more or less than you paid for the property.

What if I’m financing My Home?

If a Texas financial institution has loaned you the money needed to buy your home, then you’ll need to make sure you have an adequate amount of coverage.

The same concept applies to purchasing a vehicle. If the amount of coverage you choose to purchase is enough to cover your loan amount, you should always make sure the coverage is enough to rebuild your entire home.

After paying off a loan, many Houston residents make the mistake of cancelling their Homeowners Insurance in Houston. Since you never know when the next natural disaster will strike, it’s almost always better to keep your policy.

By keeping your Homeowners Insurance in Houston, you’re able to maintain the large amount of money that you’ve invested into your home. If you’re thinking about purchasing a new policy for Homeowners Insurance in Houston, consider learning about useful endorsements that are usually left out of insurance policies.

How Your Coverage Amount Should Be Calculated

First, you need to decide if you want a cash value or replacement cost policy view this site. A replacement policy will allow you to have your home rebuilt, and a cash value policy does the same but for a depreciated value.

The square footage, type of construction, style and roof type are all factors that are used to determine the value of your home. The value of your home is also based on the number of rooms inside of it and whether or not it has custom windows, fireplaces or other expensive features.

Any special upgrades that the home has undergone are used to calculate the value. If there are garages, sheds or other structures on the property, these structures are factored into the value.

What Your Policy Covers and Additional Coverage

In most cases, Homeowners Insurance in Houston covers theft, explosions, hail, lightning and fire. Unfortunately, most policies don’t cover earthquakes, floods and lack of maintenance. When choosing Homeowners Insurance in Houston, you should be able to add additional coverage.

For example, many Houston residents choose to purchase an additional windstorm policy because many severe windstorms pass through Houston. Standard TWIA insurance gives you coverage for hail and windstorms.

If you’re looking for Homeowners Insurance in Houston and have an older home, it can be a bit more difficult to get coverage. There isn’t a large selection of insurance companies that will cover older homes, so you might be forced to buy a modified replacement cost policy. These are the ins and outs of Homeowners Insurance in Houston.