The Texas Department of Insurance has a wealth of useful information to help home owners learn about their homeowners insurance options. It's easy to get confused when so much information is presented at one time. We want to clarify some things so you can bring a list of questions with you when you come to talk to your independent agent.

 

Distinctions Between All Risk and Named Perils Home Insurance Options

 

When it comes to age-old clichés, “you get what you pay for” is very applicable when talking about homeowners insurance options. Higher insurance premiums translate into more comprehensive coverage.

 

All Risk Policies

 

An All Risk homeowners insurance policy is to home insurance what major medical is to health insurance. It is your most comprehensive homeowners insurance option. It covers you for any peril unless the policy specifically excludes it.

 

Named Perils

 

To return to the health insurance analogies, think of named perils as the homeowners insurance equivalent to health insurance that only covers you for hospitalization. You wouldn't be covered for doctor's visits, physical exams, routine screening tests and that sort of thing. Named perils only protects you for the situations specified in the policy.

 

Replacement Cost or Actual Cash Value?

 

People often get confused about the difference between replacement cost and actual cash value. You pay more for replacement cost, but it doesn't matter what the cost of replacing your personal property is, because it's covered.

 

Likewise, if your house is seriously damaged, or destroyed, unless you opted for replacement cost, you probably wouldn't be able to get enough money back from the insurance company to repair the damages, or rebuild your home.

 

Actual cash value policies look at the value of your home and property when you bought them. Like a car and other things, everything depreciates over time, because of wear and tear and general use.

 

Actual cash value policies subtract the depreciation from the amount you paid for your home and property. If you bought your home 20 years ago, the cost was a lot lower than what you'd pay for it today, and that's the figure the company looks at if you choose the actual cash value option over replacement cost.

 

Take the time to compare your homeowners insurance options online, and then contact us to talk about your situation. We will help you look at different coverage options to find the right one for you and your family.

Coverage C is the part of a home insurance policy that protects personal property. Often, the limit of this coverage is automatically set to 70 percent of the limit on the dwelling. For example, if your home in Addison, TX is worth $300,000, then your Coverage C limit for personal property is probably $210,000. Every insurance policy, though, has other limits and exclusions listed in the policy’s Coverage C section. Here are some typical ones to look for.

Excluded Items that are Not Insured

There are a number of items that are specifically excluded from personal belongings, regardless of their value. Some common examples include:

• business data and equipment
• vehicles, boats and airplanes
• pets
• any tenant’s belongings, if the property is rented

Items that are Insured to a Certain Value

Some items are insured, but only up to a certain value. Each insurance company has different limits, but they all set limits on how much they will reimburse for the loss of jewelry, money, firearms and silverware, among other things. If your policy does not provide the full value of any of these belongings, riders are available to supplement your coverage.

Items Not at Home

The Schedule C section of your homeowners policy also provides coverage while you are away from your primary residence in Addison. While this coverage protects your belongings at someone else’s home, in a hotel room or at your ranch, the level of coverage is greatly diminished.

Complement Your Policy with Riders

Riders provide supplementary coverage for any items that are not fully insured by your Schedule C. Because these items are often highly valuable, it is best to purchase riders directly through an insurance agent, rather than online. Give one of our agents a call, so we can review your Schedule C and go over your belongings. If you need one, we are able to set you up with a rider.

Homeowners insurance generally covers common pets, such as dogs and cats (although some policies exclude certain breeds of dogs). Many home insurance policies will not cover damage caused by an exotic pet, though. If you have an unusual friend, you are probably in one of the following scenarios.

Domesticated, But Different

You may have a domesticated animal, but one that is not a common household pet. Horses, pigs, peacocks and llamas are all examples of animals in this category. Depending on the specific animal you have and your insurance policy, these animals may or may not be covered. If they are not covered, you are probably able to purchase a rider for them.

Truly Exotic Creatures

Perhaps you have a more exotic non-human friend, such as a big game cat or chimpanzee. These animals are often not covered by Texas homeowners insurance policies, because they are not fully domesticated. Your insurer may offer a rider for them, or you might have to purchase a spate policy for your exotic animal.

Exotic – And Illegal

Some people, sadly, keep animals at home that are illegal. In Dallas, residents are prohibited from keeping roosters, poisonous snakes, rheas, ostriches, bears, wolves, large cats, primates, deer, antelope, camels and bison within city limits. If you have one of these animals at home, your policy will almost certainly not provide coverage–because you are breaking the law.

Find Coverage for Your Friend

To find coverage for your exotic friend, wither furry, feathery or slithery, get in touch with one of our agents over the phone. Because coverage for these animals is so specific, finding a suitable policy requires a conversation with a licensed agent.

Insurance provides you with plenty of benefits, most particularly providing a way to protect yourself from the financial fallout of an accident. Home insurance is generally required when you purchase a house and you’re using a home loan, as the lender wants to make sure that the property is properly taking care of while you are paying off the loan. You don’t necessarily need home insurance after you have paid off the mortgage, but the benefits are well worth keeping it around.

If you want to have a pool in your backyard, you pretty much need home insurance. All insurance agents are quick to tell stories about families who choose to let their home insurance lapse after the house was paid off. Some kids hopping their fences and getting in their pools leads to injuries or worse, death, and there’s no financial shielding for the family. It’s easy to end up losing the house and other valuable assets in the resulting lawsuit.

Another advantage of home insurance is getting repairs paid for when nature decides that it doesn’t like where your house is standing anymore. Sometimes the house is completely destroyed due to natural disasters, while other times it just has extensive damage. EIther way, it’s probably more money than you have sitting around in your bank account.

You want to make sure that your house is around to pass down to your kids after you grow old. Insurance agents will help you find the best home insurance options available for your situation.

Talk to insurance agents in the Duncanville, TX area to get free online quotes for your home insurance needs.