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Archive for the ‘Homeowners Insurance’ Category

Homeowners Insurance Tips for the New Buyer

Tuesday, September 15th, 2015

For many Americans, owning a home still remains a cornerstone of the American dream. Most anyone can appreciate the satisfaction of building equity while fixing up and refurbishing their house in a way that they can enjoy it while living there. But buying a house also means needing to purchase homeowners insurance to protect it, so it’s wise to consider all insurance options when searching for that perfect place.

But while standard policies typically offer $100,000 in liability protection, most insurance experts recommend at least $300,000 in coverage. Increased liability coverage can be especially important for homeowners with potential safety hazards, such as a swimming pool or trampoline. Premiums are determined by a number of factors, many of which are under the owner’s control. Making a few smart decisions will allow for the coverage needed and could save hundreds of dollars each year. Consider the following tips, which can go a long way toward giving peace of mind while protecting that new home.

First thing to do is get the facts

After finding a potential house, gather as much information possible in order to determine its potential insurance costs. The age of electrical, plumbing and other systems within the home, as well as construction materials used to build the house, can affect premiums. For example, many insurers will give insurance discounts or breaks for masonry homes or those with less flammable roofing material, especially in dry areas of the country that are most susceptible to fire damage.

On the other hand, masonry homes could be much more expensive to insure against earthquake damage. Homeowners and potential buyers can review current building codes and materials recommendations at, the website for the Institute for Business and Home Safety.

Be aware of how geography can affect rates

Regardless of the materials used, where the house is located can have a significant effect on insurance premiums and coverage availability. Residents will likely pay more for homeowners insurance in areas prone to severe weather and natural disasters, such as tornadoes, hurricanes, earthquakes or wildfires. According to the Insurance Information Institute, those states paying the most for homeowners insurance in recent years have been Florida, Texas, and Louisiana, all coastal states having above-average claims for water and wind damage. But Superstorm
Sandy has shown that homes along the Jersey Shore and coastal areas in New York have tremendous exposures.

Rates may also be affected by the neighborhood chosen. For example, homes in close proximity to a fire department are likely to cost less to insure. And while living in a secluded area can have its advantages, it probably won’t lower insurance rates if emergency vehicles find it difficult to reach homes in the area.

Homeowners Insurance in Frisco

Friday, July 31st, 2015

One of the most important things you can do to protect your investment is to purchase Texas homeowner’s insurance. Homeowner’s insurance pays to repair or replace your home or personal property if it is damaged or destroyed by something covered under your policy. Learning about homeowner’s insurance prior to buying a home is very important. This is especially important in Frisco, TX because home values average more than $200,000,

Available Coverage

Usually, when you purchase insurance to cover your home, there are five different types of coverage that are included in your policy. Dwelling coverage pays for damage to your house and €unattached structures€ like fences, sheds, and even the garage. Personal Property coverage is for personal items like clothes, furniture and appliances. Liability protects you if you are sued over damage caused to another’s property. Medical Payments coverage assumes the cost of treating someone injured on your property and Loss of Use pays for additional expenses if you cannot remain in your home because of covered damage and need to find another place temporarily.

Types of Policies

In Texas, it is possible to purchase one of two types of polices- Comprehensive Coverage or Specified Perils Coverage. Comprehensive Coverage, also called €all risk€ coverage offers the broadest protection possible. Generally, everything is covered unless your policy specifically excludes it. Specified Perils Coverage offers more narrow coverage with only the specific €named€ perils in the policy covered.

It is important to note that even with an all risk policy, there are usually several exclusions. Make certain to read your policy for exclusions to ensure the perils you want protected are covered. For instance, a typical homeowner’s policy does not cover damage caused by floods, earthquakes, termites, normal wear and tear, and mold.

Important Terms

Insurance policies are filled with unfamiliar terms, often making it difficult to understand exactly what is covered and how. Understand the following terms can make it much easier to read through your policy:

Replacement Cost refers to the dollar amount of replacing or repairing your home. This figure is based on current construction costs and is completely different from market value and does not include coverage your land.

Actual Cash Value is simply the cost to replace your property less depreciation. Actual cash value offers less coverage because depreciation is taken into consideration.

Policy Dollar Limits are the maximum amount your insurance company must pay if your home is damaged or destroyed. It is critical you have enough coverage to avoid financial distress. As it relates to personal property coverage, most insurance policies only cover up to a certain amount for valuables and you will possibly have to seek additional coverage.