Getting the answers to the top Texas homeowners insurance FAQs is important in making the best decision possible. Frequently asked questions or FAQs will typically cover most of the things any consumer wants to know and sometimes doesn’t even know he or she wants to know before purchasing homeowners insurance in Texas. This type of information will give an easy to follow overview of the concerns of people looking for insurance on their TX homes. Reviewing these FAQs will help you make the best possible decision when it comes to your Texas homeowners insurance coverage.
Texas Homeowners Insurance FAQ #1: What is the best type of homeowners insurance to carry in Texas?
Considering there are only three standard policies offered in the state; the choice seems at first glance to be rather elementary. The HO-B is probably the most common and most economical in terms of good coverage for your dollar. This type of policy covers all losses with the exception of those listed as exclusions. It will also replace your items and your home at replacement cost. If you are comfortable with the exclusions and are eligible for this coverage, it is often the choice to make.
On a more individual level, the best type of insurance to carry is realistically the most extensive one you can afford and qualify for. Based on the certain factors, you may only be able to get a HO-A policy, which offers coverage for only specified losses and at actual cash value indemnification. If this is the case, requesting endorsements to give improve the policy’s coverage may be a way to make it a better fit for you. The most far-reaching coverage offered in Texas is the HO-C policy, but it is also the most expensive and is therefore not an option for everyone.
Choose the best base policy you can and talk to your agent about using riders and endorsements to tailor it to your needs to make sure you are covered in the best way possible.
Texas Homeowners Insurance FAQ #2: How can I get cheaper Texas homeowners insurance?
There are a number of ways to obtain lower priced homeowners insurance. You can choose to make changes to the coverage you carry. You can increase the deductible on your own policy. Often deductibles are set lower than they need to be. Think carefully about what size of loss would need to occur before you would invoke your homeowners insurance to cover it. Quite often it is a much higher than the deductible on your policy. By raising your deductible you can save on your premiums year after year. By downgrading your policy from HO-C to a HO-B or even to the minimal coverage of a HO-A, you can also save money on your yearly premiums. However, you need to fully understand the changes and what it would mean for you should you suffer a catastrophic loss. Downgrading your policy should never be the first way to cut costs on your homeowners insurance.
The best way to get cheaper homeowners insurance is to ask for discounts. Practically all companies offer discounts to insurers who take steps to reduce their own risk of suffering a loss. Therefore you should ask what discounts are available and make sure you have the ones you qualify for already and consider taking the steps needed to get the discounts you don’t qualify for. Because of the types of statistics these discounts are based on, they are solid ways to reduce your risk of suffering losses from fire, theft, liability, storm damage and other perils.
Discounts are available for:
- having a functioning fire extinguisher
- having installed smoke alarms
- keeping your home in good repair
- having a roof that is recent and in good shape
- only non-smokers living in the house
- centrally monitored security systems
- installing sprinkler systems in your home
- senior citizens
- homes that are newer or have been renovated to bring them up to safety codes
- having multiple lines of insurance with the same company
- personal items, especially those of value, being marked with an identifying number
Texas Homeowners Insurance FAQ #3: What should I look for when choosing an insurer?
Make sure that any insurance company you are planning to use is strong financially and has a good reputation in treating its clients well. Texas has compiled a listing of the companies which offer homeowners insurance in the state and has information like this readily available on each. Also, there are insurance ratings companies, such as A.M. Best, Moodys and Standard and Poors, who give ratings to the companies based on their stability, financial assets and more. It is wise to look at those ratings before making a final decision.
Texas Homeowners Insurance FAQ #4: I’m looking to buy my first house, what should I know about Texas homeowners insurance before I take that first step?
You have perfect timing to ask before you buy. There are many things you can do to keep your homeowners insurance at a reasonable level, if you take certain things into consideration when looking for a new home.
Choose where you will live carefully. Living in a smaller town often means that your homeowners insurance will be lower because there are lower crime rates and quicker response times to fire than in bigger, urban areas. When you choose your home, make sure it is within a couple of miles of a fire station. This will often reduce your insurance rates or make you eligible for discounts.
Choose a newer home or one that has been renovated so that it meets current construction codes. Homes that are made of brick are less expensive to insure than wooden frame ones, so consider carefully the structure of the home. Be sure the roof is in good condition and is recent, as this will also keep your insurance costs lower and save you a large bill in the near future when is needs to be redone.
Texas Homeowners Insurance FAQ #5: Should I pay for my premium in one shot or over installments?
This depends on individual companies. Some companies offer a discount if you pay in full up front. Others offer a discount to employees of certain companies or members of certain groups but only if they go through automatic payroll deductions or automatic banking account withdrawals. Ask the companies you are getting quotes from if there are discounts available based on payment methods.
Texas Homeowners Insurance FAQ #6: How often should I review my Texas homeowners insurance policy?
Policies should be reviewed on a yearly basis. Every year at renewal time, check your policy to make sure it still fits your needs. If you have done significant improvements to your home, you may need to up the amount of coverage you carry. If you have purchased any costly items like jewelry, furs or art, you may need to take out an additional rider to specifically cover those items. In addition, you should get quotes from other companies on a yearly basis to make sure you are getting the best premiums you can. Using online quoting tools, it is easy and fast to get a quote from several different companies at once.
Now that these Texas homeowners insurance FAQs have answered some of your burning questions, go to our quote tool on the top of this webpage and get a quote from some of the best insurers in the state.
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