7 Tips for Identifying Asphalt Shingle Damage
No policy in Texas is the same. It is more important than ever to have an independent agent help you navigate insurance options so you can choose the best policy for your needs and budget. Your personal independent insurance broker is your advocate and has a fiduciary duty to help you with no bias from an insurance company.
Why Did I Get Different Quotes/Prices from the Same Insurance Company?
There are two base policy options in Texas Named Perils and Open Perils forms – one costs less than the other. Moreover, one policy endorsement, or rider, can reduce the price you pay and your coverage by hundreds or thousands of dollars per year. Less coverage comes with lower premiums – even with the same insurance company. Lower premiums often mean a deficiency in coverage. Which is fine, as long as you first understand the policy limitations when opting for a lower home insurance policy premium.
Named Perils Policy
Typically, a Named Perils policy covers Fire, lightning, Theft, Vandalism, Windstorms, Hail, Smoke, Explosions, Damage caused by unowned vehicles, Falling Objects caused by unowned aircraft, Freezing, Sudden and accidental water escape, Weight of ice, snow and sleet, riots. Minus any specific exclusions, and then, if, there is first direct physical loss. For example, if you notice water stains on the ceiling in the living room. However, a roof inspection indicated no physical damage to the roof shingles. Then there is no coverage for a water leak, the claim is denied. Named Perils policies are usually used for hard-to-place homes. It is not the typical policy format for a standard or preferred home.
Open Perils Policy
Sometimes referred to as “all risk,” or an HO3 policy form is a specific type of home insurance coverage. Your insurance company will cover you for anything that happens to your stuff unless specifically excluded from your policy. So, you know exactly what you can expect.
Does your quote include special benefits or important coverages?
Water Damage
The typical Named Perils policy covers sudden and accidental escape of water. What about water backup, water seepage, water leakage, and water foundation coverage?
Water seepage and leakage
The base named perils policy form will not provide coverage for continuous seeping or leaking water. You must have this endorsement that extends water damage out an indefinite period. Example: you have a slow leak behind your wall for weeks that you do not see until your floors are buckling or the carpet is damp.
Water Backup
You will need this coverage for damages to be repaired and replace the flooring, sheetrock, insulation, or furniture from when a sink or toilet overflows and back up into the home. This coverage is not included in the Name Perils base policy.
Roof Deductible
Your deductible is a percentage of your home’s insured value. For instance, if your home is insured for $300,000 and your deductible is 1%, you would pay $3,000 out of pocket before your insurance kicks in. Many companies are now requiring a higher 2% or even 3% wind/hail deductible when providing quotes or applying for a new policy. In this example that would be $6,000 or $9,000 out of pocket. If you are taking on more risk with a higher deductible it will lower your premium. Ask us to quote this option for you on your existing policy too.
Roof Replacement Cost
Does your quote insure your roof for Replacement Cost or depreciated Actual Cash Value? Some insurance companies depreciate the roof’s value by about 3-4% per year. So, if you have a roof that is 10 years old you may only receive a 70% payout for repair, less your deductible.
Building Ordinance or Law Endorsement
Covers the cost to rebuild a home that has been destroyed, as well as the cost to upgrade a home so that it meets the most up-to-date building codes after a covered loss. For instance, your bathroom and the exterior wall were damaged after an ice storm. During the repair process, you find out that all the wiring and plumbing in your home are not up to code. The city would then require wiring and plumbing would need to be replaced even on the side of the home that was not damaged to maintain a certificate of occupancy.
Service Line Endorsement
Can cover physical loss to service lines on the residence premises that are a direct result of a service line failure. Covered losses can include, but are not limited to, wear and tear, rust and corrosion, mechanical breakdown, freezing or frost heave, and tree or root invasion. Coverage is limited to that part of the service line running from the point of connection at the street to the main service or utility line and through the yard up to the dwelling.
Extended Dwelling
Coverage would kick in should repair or replace your home exceed the original Dwelling A coverage amount displayed on the declarations page. For example: If we add the Extended Dwelling 25% endorsement to a home with a $250,000 value then you would have up to an additional 25% or $312,500. With spikes in inflation, this is an essential coverage to carry.
Personal Injury or Personal Offense
Family liability provides you coverage in case you are sued for libel and/or slander In today’s world, social media is more prevalent than ever. With the touch of a button, you (or your kids) can post just about anything for just about anyone to view.
Foundation Water damage
Can cover settling, cracking, shrinking, bulging, or expansion of the foundation that supports the dwelling if caused by water or steam from within a plumbing, heating, air conditioning, or automatic fire protective sprinkler system.
Get A Quote From Britton and Britton Insurance Agency
Request a quote from the Britton and Britton Insurance Agency. We compare home and property quotes with multiple insurance companies for you. 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. Speak with a licensed insurance broker who will work with you during office hours. Call 512-469-0693 or Connect with an Austin home insurance broker who will help you answer your questions. Find an insurance agent here.
*Common exclusions are things like flood and earthquake which you must buy separate policies for in Texas. **As long as hail is not specifically excluded. Policies along the Gulf Coast or older roofs may have an amendment altering wording for wind/hail. Ask your agent or view your policy for more details. Descriptions of insurance products and packages are meant to offer general ideas only, are necessarily brief, and are subject to policy provisions, limits, deductibles, exclusions, and conditions that can only be expressed in the policy itself. In the event of a conflict, the terms and conditions of your policy prevail. This information is provided solely as an insurance risk management tool. It is provided with the understanding that we are not providing advice or any other professional services. We shall have no liability to any person or entity with respect to any loss or damage alleged to have been caused, by the use of this information.
Related posts
