7 Tips for Identifying Asphalt Shingle Damage

Purchasing a new home is often the biggest financial commitment you will ever undertake. When obtaining a Texas homeowners insurance quote, one key consideration is determining your home’s true value. Typically, there are three primary methods used to evaluate this value: the Reconstruction Cost, the Market Value, and the County Appraisal.

Reconstruction Cost

This figure represents the expense required to completely rebuild your home from the ground up using current prices for materials and labor, along with updated building codes, mature landscaping management, and debris removal. Essentially, the insurable value of your home should reflect the total cost of reconstruction following a total loss or natural disaster. When you reach out to an independent agent or insurance broker—such as those at Britton and Britton Insurance. They will work with you to estimate this reconstruction cost by considering your home’s unique features, square footage, improvements, and renovations. For a more precise figure, a professional home appraiser can conduct an on-site evaluation, and if you are purchasing or refinancing, an appraisal is often part of the process. Once you have the appraisal report, simply share it with your insurance agent to help determine the appropriate level of coverage.

Market Value

Market Value is defined as the price you would pay to buy a home, including the land it sits on. This value is influenced by various factors such as the design and quality of construction, the desirability of your neighborhood, and the inherent value of the land. Although websites like Zillow, Trulia, and Redfin offer home value estimates, these figures are generally approximations and may not capture the full complexity of your home’s worth. For an accurate market value, it’s best to consult with a local real estate professional.

Texas Home Insurance Rate Increase?

Request a quote from the Britton and Britton Insurance agency. We compare home quotes with multiple insurance companies.

ONLINE

Answer a few easy questions about your house then choose options for your quote. Not sure how to answer a question? No worries, give it your best guess, and let us know in the “remarks” section. Begin your quote online here.

CALL YOUR AGENT

Speak with a licensed insurance broker who will work with you during office hours.

Call 512-469-0693.

LOCAL ADVICE

Connect with an Austin independent home insurance broker who will help you answer your questions.

Find an insurance agent here.

County Appraisal

County Appraisal Districts determine a property’s value for taxation by comparing it to similar properties in the area and considering historical land values. This assessment might not always align with either the reconstruction cost or the current market value, but it is crucial for calculating property taxes.

Adjusting for Rising Costs

It is important to note that the cost to rebuild your home can increase over time. After a major storm or natural disaster, for instance, heightened demand for materials and labor can push reconstruction costs above your current policy limits. Other factors such as inflation, economic shifts, fluctuations in oil prices, and local material availability can also impact these costs. To mitigate these risks, many insurance companies offer endorsements—such as Replacement Cost or Extended Dwelling coverage. Your current policy might already include such options, so reviewing your coverage with your independent agent is a smart move.

Ongoing Coverage and Special Considerations

Even after you have paid off your mortgage, maintaining homeowners insurance remains essential. Home owners’ self-insurance is when you use your investments or savings to cover potential losses, damage or risks instead of purchasing an insurance policy.

Lenders typically require insurance to safeguard both their investment and yours from catastrophic events—a sentiment echoed by industry experts. In short, whether you have a traditional home or a condo, insurance is a critical protection against natural disasters, such as hurricanes, tornadoes, hailstorms, wildfires, and lightning.

Property owners should also explore additional policies that might cover earthquakes, floods, or provide umbrella liability protection. It’s a good idea to keep your agent informed about home renovations that may adjust the reconstruction cost or insurability. See our previous blog post.

What if I have a condo? Click here for more information on condo insurance.

Your condo and homeowners insurance company is designed to help protect you in the event of a natural weather disaster such as a hurricane, tropical system, tornado, hail storm, lightning, wildfire, and other covered perils. You can even request a separate policy to cover earthquake, flood insurance and umbrella liability.

References