Don’t wait until a storm hits to find out you don’t have adequate home insurance coverage. For most of us being able to own a home is quite an accomplishment and is our most valuable asset. That is why having the right coverage is very important. Local rebuilding costs vary, so talk to your agent about what it would cost to completely rebuild your home.
To make sure you have the coverage you need, it’s key to understand your homeowner's insurance policy. If you are receiving quotes for the purchase of a home or have an existing homeowner's insurance policy this information is for you! A good place to start is to look at your Declarations Page. It is typically on the first few pages of your policy documents.
Homeowners Insurance Policy Declarations Page:
Coverage(s) Rundown:
Coverage A – Dwelling. This is your physical home and includes your garage if it is part of the primary dwelling. This covers damage to your dwelling as a result of a covered loss.
Coverage B – Other Structures. This covers damage to other structures on your property as a result of a covered loss. These include things like fences, sometimes swimming pools, detached garages/carports, sheds, and walls.
Coverage C – Personal Property. It includes items like your furniture, computers, electronics, clothes or equipment that may have been damaged, destroyed or stolen due to a covered loss. It’s a good idea to keep records of personal property in the home in case there is a loss at the covered property.
Coverage D – Loss of Use. We hope it doesn’t happen, but in the event your home becomes temporarily uninhabitable, Coverage D provides for additional living expenses. It includes payment for temporary lodging, food, and other expenses associated with being temporarily displaced.
Ordinance or Law. This is the cost to upgrade a home so that it meets the most up-to-date building codes after a covered loss. And it’s a percentage of your Coverage A.
Wind/Hail/Hurricane Deductible. This is what you’ll be responsible for paying before your insurance company issues any payment for damage caused by Wind, Hail or Hurricane. Some insurance policies will have different deductibles for wind and named storms. In Texas deductibles usually range from 1-5%.
Flood coverage provides protection for damage caused by rising water and storm surge. It’s not included in a standard homeowner's policy and must be purchased separately. Your agent should be able to help provide you with flood insurance.
Choosing the right insurance carrier is a big decision. Make sure to research your options and understand how they operate. Our biggest advice – Ensure the carrier of your choice has financial stability. The last thing you want to happen is that your insurance company is unable to pay your claim due to their poor financial results
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