Saturday, November 2, 2013
Texas Homeowners Insurance - 3 Things to Know Before You Buy Home Insurance in Texas
Buying home insurance in the state of Texas has never been easier. The reason for this is that more people now know about the insights of the homeowner insurance industry. However, there are a few things that you should need to know if you want to purchase homeowners insurance in the state of Texas. Below you will find the three most important things to know before you buy a Texas homeowners insurance policy.1. Types Of Texas Homeowners Insurance Coverage AvailableBefore even considering getting homeowners insurance in the state of Texas you should be knowledgeable of the many types of coverage available in Texas home insurance policy. It is important to understand that there are many home insurance companies out there and coverage varies by company. It is also important to know that you will only get the type of coverage you need and many people drop some of these accordingly. However, the four types of coverage below will always be present in a standard homeowner's insurance policy in the state of Texas.A. Coverage for the Structure of Your Home: This is perhaps the most important thing about home insurance policies because it is the thing that people first think of when talking about homeowners insurance. Keep in mind that the value for the structure of your home should never be as high as the price that your whole property is worth (that's if you want to save some money). This is simply because the market value of the house will include the dwelling itself, along with all the land in the property. Your home insurance coverage will only cover the structure of the home itself, and you can incorporate other structures such as a garage or a shed for a little bit more value. In a standard policy you will be covered for accidents such as fire, storms, hail, tornadoes and hurricanes. Always double check to see what is specified in the policy and don't hesitate to add other stuff if you wish to do that.B. Coverage for your Possessions: This is a very important type of coverage that you will need in case of an unexpected accident or a natural disaster strikes your area. Texas is a big state, and like any other big state it is very susceptible to things of such magnitude. The coverage for your possessions usually pays from 50 to 70% on the value of your residence. Things like furniture, jewelry and electronics can be covered under this portion of your policy.C. Liability Coverage: This is the type of coverage you need if you want to be protected from being liable to anyone in the event that they get injured in your property. Accidents can happen at anytime in any place and this coverage ensures that you are covered from being sued by a person that claims getting hurt in your house or land. Instead of taking action against you, what the person will do is make a claim to the home insurance company and they will deal directly with them. You can also buy what is called "umbrella" coverage and be protected even more for this part of your policy.D. Other Expenses Coverage: This is the easiest coverage to explain because it only deals with the expenses that you and your family may have if your house is destroyed cause of an accident or natural disasters. Things such as transportation and hotel fees can be reimbursed. If your house is habitable even after the accident then you are not covered for the things mentioned before.2. Things That Determine Your Texas Homeowners Insurance PremiumsThere are many things that can determine your Texas homeowners insurance premiums; however there are four things that are key in how much money you will be paying beforehand. Below you will be able to see the four key determinants of rates, as well as an explanation of why these things are important for home insurance companies.A. Type of Construction: This is perhaps the most important thing in the state of Texas when it comes to the value of your homeowner insurance policy. The state of Texas is one of the biggest in terms of surface area in the United States. It is not uncommon to see things such as hurricanes in the coastal places, tornadoes, hail and even mole scares. Companies in this state just like in any other one usually charge higher premiums to houses made out of frame because they are weaker. This means that if you own a brick house you have the advantage.B. Age of the House: This is another important determinant because old houses tend to be weaker and require the owner to fix it more often. New houses usually receive discounts and have more safety features installed.C. Safety Features: These are a good thing to have because they can determine if you will pay less or more each month. A house with an fire alarm, smoke detectors, indoor fire sprinklers and a security alarm will pay much less than one without. It is plain and simply, the more damage you prevent; the less your monthly premium will be.D. Credit Report: A new determinant of premium because companies are just starting to use this measure. If you have a good credit report you will be less likely to be charged more. On the other hand if you have a poor credit history insurance companies wont find you reliable at all and you will be charged more per month.3. Average Texas Homeowners Insurance RatesLast but not least it is important to know how much your fellow Texan residents are paying annually, so that you can try to keep your premiums below these dollar amount. According to the 2007 National Association of Insurance Commissioners (NAIC) the average premium for a Texas resident was approximately $1,372 and it was the state that paid the most money in home insurance. The national average premium for someone with homeowners insurance was an estimated $764.The reason that people in Texas pay this much is because they are prone to natural disasters such as hurricanes on the coastal part of the state and tornadoes in the Northern Part. Not only this, but it can also be prone to hail and thunderstorms. Last thing worth mentioning is that Texas mole scares are the worst in the nation and that people should prevent them if they want their rates to go down!Shop Around To Find The Best Texas Home Insurance!There are many important things to know about Texas homeowners insurance and if you read this article you have now learned three of those things. The types of coverage in the policy, the determinants of your premium and the annual Texas home insurance rates will be key things for you to know if you want to understand the industry a little bit better. So go out and shop around because you will learn more about the industry when you participate in it - and most importantly probably save yourself some money in the process!