When looking for home insurance in Texas, home owners are naturally concerned about the cost. Texas home insurance rates can fluctuate widely by region, city and even neighborhood. Of course, these rates also vary from insurer to insurer. Getting a quick quote is not the best way to determine your rates unless you are dealing with an independent agency that will check with several companies.
Replacement Cost vs. Depreciation
When looking for the best insurance for your money, it helps to read the fine print. If you opt for insurance that insures you for actual cash value, you will not get full restitution when something happens to your property. This can be significant when a tree falls on the roof, and the insurer will only pay a percentage that’s based on how old the roof is.
Home Value Deductibles
These can really hurt a home owner. Insurance companies are adding these deductibles to catastrophic claims. This may mean a huge deductible, such as $5,000 on a $500,000 home, before any money is paid on a claim. When you are looking for insurance in Texas, an independent agency can help you find the best rates for a better policy.
Crunching the Numbers
Clearly it is tricky to get the right insurance without a little help. Home owners may want to crunch the numbers to make sure that they are getting a good value. If your company is offering Actual Cash Value plus a home percentage deductible, you could wind up paying most of the cost yourself. A claims adjuster could determine that the roof only had a 30 percent viability. Then that 30 percent is applied not to the whole $15,000 roof but to the cost after the home value deductible is subtracted. So that’s now $10,000, and the end result is only $3,500! On the other hand, a full replacement cost policy could deduct only the $1,000 deductible and offer you $14,000 for the exact same roof.
One last thing, home insurance policies have been excluding water back-up. Yet water backup can cost $5,000 to $10,000 for clean-up, repairs and renovation. A good insurance policy can add this coverage, but again rates will vary widely. Home owners should consider this when comparing Texas home insurance rates.
To get the best Texas home insurance rates, get help from an independent agency that will fairly compare rates for you. At the Roger Welch Agency, we are proud to serve the city of Frisco as well surrounding Texas communities of Little Elm, Plano, McKinney and many others. Contact us today by visiting our website by clicking here.