Your home is likely one of your most valuable assets. If something happens to your home, the cost of repairs or rebuilding could be astronomical. Homeowners insurance protects you from financial hardship and personal liability if a disaster occurs at your property.

What Does Homeowners Insurance Cover?

Homeowners insurance coverage is known as a package policy because it protects your home, your personal belongings and you from liability arising from incidents on your property. Although not required by law, most mortgage lenders will require proof of home insurance as a requisite to receiving a loan. But even when it’s not mandatory, home insurance has many benefits.

Most homeowners insurance policies will include the following coverages:

·       Personal liability coverage pays for legal fees, medical bills and lost income up to your policy limits if you or one of your family members is accused of causing property damage or bodily harm to a third party.

·       Personal property protection replaces or repairs your possessions if they are stolen or destroyed within your home.

·       Dwelling coverage covers damages to the permanent structure of your home and may include repair and replacement costs for damages for other structures (e.g., garage, fence).

·       Additional living expenses pays for your room and board (e.g., hotel stays, meals) if property damage forces you to move out while repairs are made.

A home insurance policy protects you from many unexpected catastrophes, such as burglary or fire. But some natural disasters, such as flooding and earthquakes, are not generally covered. You may want to consider purchasing a separate flood insurance policy to cover flood losses, especially in high-risk areas.

We’re here to answer all of your homeowners insurance questions. Contact Texian Insurance in Waco, Texas, to speak to an insurance agent today and for a free online quote.

How Much Home Insurance Do I Need?

When deciding how much coverage you need, you should consider the cost to replace or rebuild your home and your belongings. For sufficient protection, ensure your policy limits are high enough to cover your assets.

There are three ways your insurance company can reimburse you for damage to your property or personal possessions:

·       Actual cash value (ACV) coverage repairs or replaces your damaged property and personal possessions, up to your policy limits, at the damaged item’s current market value, which will include the item’s depreciation over time.

·       Replacement cost (RC) coverage repairs or replaces damaged property and personal possessions, up to your coverage limits, with no deductions for depreciation.  

·       Guaranteed replacement cost insurance repairs or replaces damaged property and personal possessions, even if the cost exceeds your policy limits, offering financial protection for unexpected circumstances (e.g., increased construction costs).

How Is Home Insurance Calculated?

Your insurance company will look at many factors when determining your monthly premiums, including the following:

·       Your zip code

·       The condition of your home and the cost to rebuild

·       Any home safety or security systems you have in place and

·       Your deductible

We’re here to help you find the right policy for your home. Contact Texian Insurance for more on our full coverage solutions.

How Do I Buy Home Insurance?

The right insurance is just a few clicks away. Since 1996, we’ve been helping central Texans find customizable coverage solutions at better rates than most competing insurance companies. Contact Texian Insurance today for a free insurance quote or to speak to an insurance agent.