Homeowners Insureance

Home Owner Insurance in Texas: The Basics   by George M. White

As with any type of insurance or other major financial decision, those looking to buy home owner insurance in Texas should prepare themselves with at least some basic information about the types of policies and coverages available before calling providers for quotes.

There are three standard types of home owners insurance in Texas, which are clearly defined by the Texas insurance commission and are consistent from one provider to the next. These are the HO-A, HO-B and HO-C policies. There is considerable difference between the HO-A, which offers the least coverage at a lowest rate, and the HO-C, which covers the full replacement value of most types of damage that can occur to your home and/or personal property. Understanding the difference between the most common types of policies of Texas home owners insurance you will encounter is an important first step.

Home owners insurance providers in Texas may not specifically mention the type of policy they are quoting you unless you ask. The first question you should ask, then, when speaking with the provider. Is it the HO-B, the HO-A or some other type of policy?

If it is the HO-A policy the provider is offering, you should ask what types of coverage has been added to the base policy defined by the state, and how much is being charged additionally as “endorsements” to this standard policy? Take careful note of everything you are told and verify this information with an independent source such as the OPIC policy comparison chart which can be found online.

If the home owners insurance provider is offering a policy other than the HO-A, HO-B or HO-C, you should ask them to draw up a comparison between the policy they are offering and the standard policy that is most similar. This will be important to you as you continue to price-shop Texas home owners insurance rates. You cannot compare apples with oranges, obviously, so you will need any home owners insurance provider you speak with to explain their policy with regard to one of the available state standards.

Be sure to consider deductible information in your rate comparisons. A home owners insurance provider in Texas may offer a lower rate than its competition, but include a much higher deductible. One should consider the difference in the monthly rate in terms of how long it would take you to save the money for that deductible. You should always be sure you keep a savings that could cover the deductible in a time of need, as well as any other expenses your policy may not cover.

Finally, be sure to ask your insurance agent about the types of discounts that are available and see if you qualify for any of them.

Searching for home owners insurance in Texas may seem like a daunting process, but educating yourself about the basic will make you feel much more confident in the search. Give Texas Auto & Home Insurance a call with any questions you may have. We will assist you in finding the best rates and coverage for your needs and budget.

Verify Homeowner Insurance Will Cover Your Losses   by Dock Murphy

Most homeowner or renter insurance policies will not cover equipment or supplies used in connection with the operation of a business in the home. Your insurance company will want a separate rider on your policy to cover loss or damage to your business-related equipment. Additionally, if you invite customers or clients into your home for business, if they get hurt while on your property there’s a good chance your liability policy isn’t going to pay the bills.

Protecting yourself against potential liability should be a consideration for people operating a home business. Persons who perform work for others in their home or place of business find that insurance is a necessary part of doing business and unless you can show proof of insurance, most companies won’t let you in the front door. You should have the same opinion about those who do business with you.

Another consideration for operating a business, in the home, out of the home or even as a free-standing business is insurance that protects you against the loss of business through no fault of your own. For example, there is a major storm and while you suffer no damage or loss at your home or place of business, you may be forced to close due to lack of electricity or gas for heat for several days. Business interruption insurance can help keep other bills paid while you sit idly by waiting for the power to come back on.

Depending on the policy you choose and the insurance company is willing to write, it will usually require detailed records about your earnings history. When you make a claim for loss of the ability to conduct business, you will have to prove what your history of income has been for a certain amount of time. Many business interruption policies will want to see at least one quarters worth of records, or 13 weeks, to make a determination of what their liability may be.

They also will want this broken down by day. For example, it may not be enough to show that your business has averaged $1,000 a day for the past 13 weeks. If your out of business on a Monday, Tuesday and Wednesday, they will want to see the average income for the past 12 Mondays, Tuesdays and Wednesdays. If the bulk of your income is realized on during the weekend, you may be disappointed in the insurance company’s claim pay out.

Your home car insurance also may not cover you if you use your private vehicle for business purposes. If you are delivering an order to a customer, that is business-related and if you wreck your car, or worse injure someone else, your insurance company may refuse the liability unless your policy includes business use of the vehicle.