Texas Homeowners Insurance
The purchase of a home is a big investment, so protecting your investment if something unexpected happens to your home or possessions is very important.
As a consumer, it is very difficult to know the difference between the policies you’re being offered from various insurance companies that it makes it difficult to compare apples to apples. The Office of Public Insurance Counsel (OPIC) has made it very easy to find an unbiased comparison tool to see the difference between any home policy offered in Texas.
The link to OPIC is below and you can also see an example of a comparison by CLICKING HERE.
http://www.opic.texas.gov/residential-property/compare-policy-coverages/homeowners
Let’s start by defining a few things:
Peril: Cause of loss—for example, fire, windstorm, lightning, smoke, and more.
Dwelling: The structure at the insured location primarily used as a private residence including attached structures such as a patio or carport.
We recommend the HO-3 or HO-B policies to the majority of our clients. These policies typically cover:
- Open Peril coverage on your dwelling which means unless the peril is specifically excluded in the policy, your property is covered.
- Water damage which is automatically covered by the HO-B policy or added by endorsements to the HO-3.
- Damage to the Foundation or Slab – If damage to the foundation or slab results from a covered water leak. This coverage is automatic on the HO-B and can be added by endorsement to a Texas homeowners insurance HO-3 policy. This does not cover damage resulting from settlement and shifting of the earth.
Different policies also have different claims settlement.
- Actual Cash Value (ACV) means that the claim payment will be based on the depreciated value of the property. For example, if your 10 year old roof is damaged and at 50% of its remaining life, you would get 50% of the cost to replace your roof minus your deductible. This is considered lesser coverage.
- Replacement Cost (RCV) provides enough money in the event of a claim (minus your deductible) to rebuild your property without factoring in depreciation. This is considered better coverage.
Texas is a large and diverse state, so whether you live in Denton, Dallas/Ft. Worth metroplex, or South Texas, you may have different coverage needs. Let the professionals at Ryan Everet Insurance develop a plan that fits your needs and budget.