Home insurance or homeowner insurance is a coverage that provides you with financial protection against an accident or disaster involving your home. It covers two distinct things – the structure of your home and your personal belongings.
How Homeowner Insurance in Texas Cover Your Home Structure
There are three ways to ensure the structure of your home:
Actual Cash Value
Actual cash value pays the initial cost or market value of your home or item minus depreciation cost. Homeowner insurance companies will factor in the age and use of the property or item before arriving at an ideal coverage it.
Replacement Cost Coverage
Also known as RCV, this option ensures that you get the cost of replacing the damaged property without any deduction for depreciation, but limited to the maximum dollar value on your policy. It is calculated using the price paid for the damaged item(s) or the cost of building or purchasing the home. The coverage is for the value of the item or home; not the land it is built on.
Extended Replacement Cost Coverage
Extended replacement cost is the most reliable of the three options. Unlike replacement cost that limits your coverage to your policy’s dollar amount, this option allows reimbursement of a certain percentage above the policy limit. It lets you get an extension of 10% to 25%. This is to protect you against a sudden rise in construction costs. For instance, say the coverage limit of your home insurance is $400,000, and it is insured with 125% of the extended replacement cost. This will increase your limit to 25%, thereby eligible for up to $500,000 coverage.
A Breakdown of What Texas Homeowner Insurance Covers?
When buying home insurance, you will have to choose from a list of perils or losses that you want the policy to provide coverage for. They may include theft, fire and smoke, damage, vandalism, etc. You will be eligible for coverage payment if the damage or loss is caused by any of the covered perils or losses. Depending on the agreement, most homeowner insurance in San Antonio and other parts of Texas covers the following:
Dwelling: This pays for your house damaged or destroyed by a covered loss.
Personal Belonging: It pays for damaged, stolen or destroyed items in your home, such as clothing, furniture, and appliances.
Other Structures: If a structure that is not attached to your home is destroyed, this policy will help rebuild it. Examples of such structures include detached garages, fences, storage sheds.
Personal Liability: This pays to defend you against a lawsuit. It also settles claim payments if the judgment pronounced you legally responsible for someone else’s property damage or injury.
Loss of Use: If you are to move from your home because of a covered loss temporarily, this option pays for your extra living expenses. The coverage may include housing, food, and other basic needs. It is calculated using a certain percentage (10 to 20) of your dwelling coverage or for a specified period, say 24 months.
Medical Coverage: This settles the medical bills of those hurt on your property.
What is Not Covered?
While most Texas homeowner insurance policies cover a wide range of disasters and losses, there are a few exceptions. Damaged belonging resulting from poor maintenance will not be replaced or repaired by your insurance company.
Flood, Hail and Windstorm
These are separate insurance policies that are not covered by most homeowner insurance in Texas. You may need to buy them as stand-alone if you live in an area prone to these natural disasters. These policies will help provide more reliable protection for your property. Recall that in 2016 alone, homeowners recorded over $5 billion loss to hail. You can get hail and windstorm policy directly from the Texas Windstorm Insurance Association (TWIA) or through an insurance agent. Your agent can also help you get flood insurance.
What to Consider When Buying Homeowner Insurance in San Antonio, TX
Work with a Trusted Agent
Working with a trusted, experienced agent will help you save tangibly on your insurance cost, including stress and time. Licensed insurance agents have a vast knowledge of the industry. They know the best homeowner insurance companies near you in San Antonio and environs. They will also help you make the most of your policy in terms of the underwriting process and coverage claims. Your agent is also in the best position to help you out with the best homeowners insurance Texas calculator.
Buy According to Your Needs
Before you start shopping, you need to take an inventory of your home and know its value, including the belongings in it. You should also determine the type of coverage you want for the property. For instance, will you be contented with just actual cash value, a replacement cost, or you desire extended replacement cost coverage? This will guide against being underinsured.
Have the Basic Understanding of the Common Terminologies
These include deductibles, premium, liability coverage, cash value, and sub-limits. This is one of the main reasons you are working with an agent. Ensure you ask and get answers to all the important questions before signing the contract.
Gonzales Insurance Can Get You Covered
Your home isn’t just a structure. It is an integral part of your family memories and abode. It deserves the best protection you can think of. This is why you should engage the service of an experienced agent when buying a homeowner insurance policy.
Here at Gonzales Insurance Group, we offer high-quality, yet cheap homeowner insurance quotes for our clients. Regardless of the size and type of your home, you can count on us for the best coverage for a decent amount. Getting your quality policy today is as simple as filling out this free quote.