Homeowners Insurance

Home Insurance premiums are going up these days in Texas.  You may see real savings, though, if you will take a few minutes to check around and make sure that you are getting all the discounts available.  Below is a brief discussion on some discounts available on homeowners insurance.  Not all discounts are offered by all homeowners insurance companies, but it pays to ask your insurance agent which ones he has available.

Hemphill Insurance Agency in Fort Worth, TX represents insurance companies which offer many or all of the discounts discussed below.  We are happy to discuss them with you at no cost and no obligation. Call us at (817) 923-2001.

Alarm Discount

If you have a monitored burglar and/or fire alarm, you can get a discount off your premium.  Most Alarm companies will provide a certificate for you to give to your insurance agent to obtain the discount on your homeowners insurance.

Age of Roof Discount

If you have recently replaced your roof, let your agent know.  Some insurance companies offer a discount for newer roofs.

Newly Purchased Home Discount

If you are shopping for a home and getting insurance quotes, some insurance companies offer a discount on newly purchased homes.  Tell your agent if the quote you are getting is for a home you are just now buying.

Senior Discount

Many insurance companies offer a Senior Discount on their homeowners insurance policyholders.  If you are 60 or older, make sure to let your agent know.

Newer Home Discount

If your home is less than 10 years old, many insurance companies discount their rates.  If your home is less than 10 years old it pays to shop for a company that discounts their rates on newer homes.

Good Credit Discount

Many insurance carriers use credit as a component in their rating.  If you have good credit, you can see substantial savings with these insurance companies.  Ask your agent how your credit history effects your rate.

Companion Policy Discount

Some insurance companies offer substantial savings if you put both your homeowners insurance and auto insurance with them or through their agent.  Ask your agent if any additional discounts are available for placing both your home insurance and auto insurance with them.  The discount is also sometimes available when other lines of insurance are with the same insurance agent or insurance company such as a motorcycle insurance, boat insurance, or RV insurance.

Hail Resistant Roof Discount

Did you have a hail resistant roof?  If your roof complies with the Texas Department of Insurance requirements for Impact Resistant Roofing Credits, some insurance companies will discount your homeowners insurance rate.  There are 4 levels for this discount, and each insurance company establishes the amount of discount available for each level.   The roofing material must have passed the UL Standard 2218 test and be property labeled.  The Texas Department of Insurance also requires a certificate from your roofer, so make sure your roofer provides you with the form that is required.

The link below will take you to the Texas Department of Insurance web page with details about this credit:

Accredited Builder Discount

Some insurance companies offer extra discounts when newer homes which were built by a home builder with a good reputation.  If your home is less than 5 years old, ask if the home builder is on the insurance company’s list of accredited builders.  You may qualify for an extra discount

For most of us, our home is our biggest investment.  Homeowners insurance protects you from financial loss to your home from a covered loss.  It is important to know what’s covered and what’s not.  This article deals with some common questions about homeowners insurance in Texas.  This article concerns owner occupied dwellings.  (If you are a renter, check our blog later on for information on renters insurance.)

Make sure you get and read your homeowners policy. If you’re not sure about something, ask your agent. The discussion below concerns Texas homeowners policies only.

What types of property do Texas homeowners policies cover?

Most homeowners policies in Texas include the following coverages:

• Dwelling pays if your house is damaged or destroyed by a covered loss.
• Personal property pays if the items in your house (such as furniture, clothing, and appliances) are damaged, stolen, or destroyed.
• Other structures pays to repair or rebuild structures not attached to your house, such as detached garages, storage sheds, and fences.
• Loss of use pays your additional living expenses (housing, food, and other essential expenses) if you must temporarily move because of damage to your house from a covered loss. Your policy will pay either a percentage of the amount of your dwelling coverage (typically 10 to 20 percent) or for a specific period after the loss (such as 24 months).
• Personal liability pays to defend you in court against lawsuits and provides coverage if you are found legally responsible for someone else’s injury or property damage.
• Medical payments pays the medical bills of people hurt on your property. It might also pay for some injuries that happen away from your home, such as your dog biting someone at the park. A basic homeowners policy pays $500 in medical bills, but you may buy up to $5,000 in medical payments coverage

Remember,  insurance companies may exclude coverage for certain losses. Even the most comprehensive all-risk policy will exclude certain types of damage.

Is your home and/or personal property covered for actual cash value, or replacement cost?

For a discussion on the difference between actual cash value and replacement cost, see our article Home Insurance – What is Replacement Cost and Actual Cash Value.

What are the coverage limits on your Texas homeowners policy?

The policy declaration page will state the maximum amounts your insurance company is required to pay if your house and/or personal property is destroyed.  Make sure you know what those limits are and if they are adequate.  Additionally, certain types of property will have sub-limits listed within the homeowners insurance contract.  Most policies place a small dollar limit amount for losses involving jewelry, watches, furs, money and securities and firearms.  This list is not all inclusive.  Make sure you read your policy so you are aware of what types of property have sub-limits and what those sub-limits are.

In some cases, the insurance company can increase the sub-limit for an additional premium or can schedule the valuable items individually for each item’s full value. Ask your agent.

What perils are covered on your Texas homeowners policy?

Subject to the policy terms, conditions, limitations and exclusions, most homeowners policies cover damage caused by FIre and Lightning, Windstorm, Hail, Smoke, Explosion, Riot & Civil Commotion, damage caused by aircraft and vehicles, vandalism and theft.  (Not all policies are the same, so make sure you read your policy.)

Additional perils may be added such as damage caused by sudden and accidental discharge of water, falling objects, collapse from weight of ice or snow, as well as sewer backup, and damage caused by plumbing leaks within your foundation.  Make sure you read your policy to know which perils are covered.

Most policies do NOT cover (exclude) losses caused by:

Other exclusions, conditions and limitations may apply.  Make sure to read your policy.

Flood insurance is available on a separate policy written through the National Flood Insurance Program.  Hemphill Insurance has access to this program.  Call us at (817) 923-2001 for a flood insurance quote.

What is my deductible for a covered loss?

The deductible is typically listed as a dollar amount and a percentage. The deductible is the amount you must pay before the insurance company will pay. For example, if you have a claim for $5,000 and a deductible of $1,000, the insurance company will automatically deduct $1,000 from the amount it will pay you.   In some cases you may have a different deductible amount depending on whether the loss is weather related or non-weather related.  For more information on deductibles, see our article How much is my deductible on my homeowners insurance policy?

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This article is only a very brief discussion of certain basic considerations regarding homeowners insurance.  Each homeowners needs and circumstances are different, so make sure your agent understands those needs.  Ask questions, and read your policy until you fully understand what’s cover and what’s not covered.

If you live in Fort Worth or the Greater North Texas region and would like to discuss your homeowners insurance, or obtain a free, no obligation quote, call us at (817) 923-2001 or visit our website at https://www.hemphillinsurance.com/.