What to consider when shopping for a Home Insurance Policy
The Company: Most well known carriers will have an AM Best Rating. They provide an independent financial rating of the company based on reserves, loss ratio and other factors. An A++ to A rating indicates the company is in a superior to excellent financial position. B++ to B- means good to fair financial rating. At the Ed Cuellar Agency we recommend and quote those carriers that are A++ to A rated. Our licensed staff will answer any questions or concerns you may have regarding a company’s AM Best status.
Type of Home Insurance Policies:
There are several different homeowner assurance forms in the state. But the most important thing to keep in mind is that you have a replacement cost for a Home Insurance Policy as opposed to a cash value policy on your house. You will get a much better settlement offer from the adjuster with a replacement cost coverage. Cash value policies are settled on the depreciated value of the dwelling or personal property. When calling around for quotes for Home Insurance Coverage be sure to ask if they are offering a replacement or cash value policy. Also, a replacement cost policy means you need to insure for the proper amount.
Covered Perils: As I mentioned earlier, there are different homeowners insurance forms in the market place. Not all will offer coverage for foundation damage, sewer back up, seepage and other unforeseen perils. Water damage to your home can cost several thousand dollars to repair. After the fact is not the time to find out you did not have water damage coverage. Always ask if these coverages are included in your policy. Our representatives will sort this out and make sure you are getting the right coverages.
Are all policies the same? NO! Since the mold crisis a few years ago carriers started insuring homes on different policy forms. Not all will cover water damage, mold, foundation or repeated seepage. In addition, not all will insure the dwelling on a replacement cost basis or provide coverage on an all risk basis. Read your policy, ask questions and better yet do a side by side comparison especially if shopping around for rates.
Choosing the right Homeowners Insurance
Three important reminders to help you fully cover your property.
No one wants to make the mistake of being underinsured, watching bills and financial headaches mount after something goes wrong. A standard Home Insurance Policy includes four essential types of coverage: Coverage for the structure of your home, coverage for your personal belongings, liability protection, and additional living expenses in the event you are temporarily unable to live in your home because of a fire or other insured disaster.
Homeowners hoping to cut costs should shop around for the best plan, but not trim essentials needs. When buying a plan for your home, be sure to keep in mind:
1. Don’t choose Home Insurance on price alone!
You want to choose a company with a quality reputation and customer service. If you have a claim, you need to be able to get through!
Also remember that the cheapest policy may not be the best policy. What may cost less up front, could cost you more in the long run. You need to make sure your policy covers the replacement cost of your home and its belongings, not simply the cash value. For example, if your roof suffers structural damage in a storm, you don’t want a policy that will only pay you for the depreciated cost of that roof when replacing it will cost you thousands more
2. Insure for the replacement value not the real estate value.
The current real estate value of your home may be different from the cost of rebuilding it altogether, but if your home is wiped out in a natural disaster you need to have enough money coming to you from the policy, to rebuild and re-purchase your destroyed furniture and other belongings. So choose the correct Homeowners Insurance coverage for your House.
If you’re looking for a lower policy this is not the area to trim. Instead consider a higher deductible to reduce premium payments.
3.Don’t forget about flood coverage and other extras.
One of the largest mistakes that homeowners make is assuming that their policy covers their home and belongings in the event of every potential risk such as a flood. A prudent homeowner will know what natural catastrophes are common in their location and make sure they are adequately covered by their Homeowners Insurance Policy. But no matter what, don’t forget the flood insurance! This is almost always a separate policy but even homes in low risk zones can see flood damage. The Insurance Information Institute explains, “Consider buying a flood insurance policy as your house could be flooded by melting snow, an overflowing creek or pond or water running down a steep hill.” And don’t wait for a flood season warning to buy a policy – there is often a waiting period before the policy goes into effect.
Renters Insurance covers your personal possessions at the home or apartment you are renting for damage due to fire, theft, lightning, windstorm hail, explosion, vandalism and smoke. More then likely, your landlord has insurance on the building you are renting. But it will not cover your personal property. Most renters policy are very inexpensive. Usually $20.00 to $30.00 a month. It will also include coverage for personal liability if say a family member or guest gets hurt while visiting you.
What Information is needed for Homeowners Insurance? Read Article
Ed Cuellar Agency call for Homeowners Insurance Quotes in San Antonio and Del Rio Texas
More Information here:
San Antonio, Texas