Costly Mistakes on Your Homeowners Insurance in Texas
People buy homeowners insurance in Texas every day, but many of us wonder whether we made the right decisions. Insurance policies can be confusing, and homeowners frequently fail to get enough insurance to protect their home from serious disasters. If you’ve questions or concerns about your homeowners insurance in Texas, these tips may help you from making costly mistakes.
Cash Value/Replacement Costs
Homeowners purchasing homeowners insurance Houston tend to focus on the costs of the premium. So, many people choose to go with cash value for personal property to save money on their premium.
The problem occurs when their depreciated TV is only worth $100. However, if it had to be replaced it would cost $400. So, the better option might be to insure personal property for replacement costs rather than cash value.
Not Enough Liability Coverage
Many typical policies for homeowners insurance Houston offer an average of $100,000 for liability insurance, which is the minimum legal requirement. Liability coverage is used to cover medical and legal expenses incurred when people are injured on your property.
Medical costs have skyrocketed and legal fees are always high. Therefore, you might want to consider increasing this amount to be prepared for lawsuits or accidents.
Choosing the Wrong Deductible Amount for Homeowners Insurance in Texas
Most people guess at what deductible they should choose in the hopes that everything will work out in the end.
However, experts suggest that you set your deductible at about $500-$1,000. The deducible is the amount you payout when making a claim before your insurance coverage picks up the remainder of the bill. Make sure you can afford to pay the deductible amount you choose in the event of major disaster.
Not Buying Enough Coverage for Disasters
Most people buy homeowners insurance in Texas to cover the basics like vandalism, theft, fire or lightening. However, they fail to consider other perils or pretend they will never happen.
If for example, you’re living along the coastline of Texas, you should at least discuss the possibility of insurance for floods, hurricanes and sink hole coverage with your agent.
Not insuring Your Home for Replacement Costs
Many people make the mistake of insuring their home for the mortgage amount or the appraised value. However, the mortgage amount isn’t necessarily what it will cost to replace your home today. Insure your home for what it will cost to rebuild, and don’t include the cost of the land, which wouldn’t be harmed in a disaster.
Choosing an Insurance Company Based on a Price Quote
Sadly, many people are hung up on the cost of their homeowners insurance in Texas and forget to take into consideration vital key factors when shopping for a reputable company.
You should research any insurance company you’re seriously considering to make sure they have been in business for years and are financially secure. Getting cheap insurance doesn’t do any good if they go out of business when you need to make a claim.
Besides stability, you need to consider a company that provides excellent customer service when shopping for homeowners insurance in Texas. You want to be able to reach your agent during an emergency. You should always research customer complaints online to learn whether a company is responsive to homeowners needs and how they handle claims.
Personal Property Documentation
Keeping and maintaining personal property documentation for your insurance company is critical. You should have receipts, photos and descriptions of all your personal property for homeowners insurance in Texas, so you can be reimbursed in case of damages or theft.
Some of the most costly mistakes affecting homeowners insurance in Texas occur when homeowners forget to update policies with home upgrades or new purchases.