Your home is more than bricks and mortar. It’s where life happens and memories are made. If you experience a claim, you’ll want more than a check from your insurance company. You’ll want your life back. We’ll help you rebuild without hassles, headaches, or delays.
What does home insurance cover?
Comprehensive home insurance coverage protects your property against damage from fire, lightning, explosion, wind, hail, water damage, smoke, vandalism, theft, falling objects, plus additional hazards. It also provides temporary living expenses if your home is uninhabitable after a covered claim. The primary purpose of property insurance is to protect your investment from all risks. However, the three most common claims are:
- Wind & Hail
- Water Damage & Freezing
- Fire and Lightning Damage
How much insurance do I need?
Being underinsured is a common issue for homeowners and may not even know it until it’s too late. Being underinsured means that you don’t have enough coverage to rebuild your home if it were destroyed by fire, tornado, or some other disaster.
Conversely, some homeowners may find that they are over-insured. This means that they are or paying higher premiums for insurance that they will never use. To make matters worse, since today’s deductibles are mostly percentage based (such as 1%), at the time of a claim they overpay again due to the higher deductible.
To avoid these two pitfalls being rightly insured is best. Here’s how:
- Don’t use your value given by the county appraisal district.
- Don’t use your loan value.
- Don’t use the price you paid for the home.
- Don’t use the current market value.
- Do use this formula: actual square footage x average rebuild cost / sq ft = insured value
The first part is easy. But it’s more of an art to the second part. Start by looking online. For example in 2019, a range of $125 – $175 can be found for DFW. Basic homes are at the lower end while those with more customization are at the higher end. So a good starting point for most is $150. Once the insured value has established, all the other coverage amounts are automatically determined as percentages.
Another important part of homeowner’s coverage is liability. The personal liability portion of your homeowner’s insurance policy covers you against lawsuits for injury or property damage that you or your family members cause to other people. It also pays for damage caused by your pets.
Attorneys frequently take cases on a contingency basis, so it’s free for people to sue you. However, as a defendant you must pay your own attorney fees up front. So, without liability protection you’re immediately at a disadvantage. You should buy enough liability coverage to protect your net worth.