Auto Insurance In Texas
There are various things you need to know before you buy car insurance. Since the cost of car insurance stretches your spending budget. It’s incredibly essential you know some methods on how you may get affordable Austin car insurance in Austin, Texas. Everyone need to preserve money to pay their monthly premium because maintaining auto insurance can be pricey, much more if you have an insurance policy which you cannot afford to pay for every month.
You already know that high risk motorists are extremely expensive to ensure that it why insurance providers are charging them with an increased premium.
Drivers who’ve been convicted with a DUI or DWI case can buy and provide proof of their SR22 car insurance when needing to provide evidence to law enforcement officer for proof of insurance. Driving without insurance is not an option if you decide to get behind the wheel of a motor vehicle in the State of Texas. TexasSure the insurance verification program has put end to the days of uninsured motorists drivers and dropping coverage after receiving a valid insurance card, and fraudulent insurance cards. So, get insured!
Looking for affordable SR22 car insurance in Austin, Texas isn’t really that easy because virtually all insurance agencies will yield you a high rate since you’re already a high risk driver. Who’s predisposed towards a road traffic incident.
Things to Know about Life Insurance
If you love Suze Orman then you may like to learn more about her position on Whole Life Insurance. Here’s a conversation with a guest calling wherein will shed some light on her ideas on Term Life Insurance vs Entire Life. A caller has phoned in asking Suze propositions about whether to buy a lifetime policy advocated by a buddy. The annual premium is $14, 000 for $500, 000 of whole life coverage. Listen, you may get off a half of a million dollar term coverage for two decades at your age for roughly $25 or $30 per month.
Now, if you wish to make an investment you might take dozens of other $1000 of dollars and take that money and commit it where? In a retirement account, a bit of real estate, in stocks, bonds, whatever it might be where it certainly makes sense to you. For the quantity of death benefit, you can buy Entire Life, as life insurance coverage is way overpriced. $500, 000 worth of Whole Life Coverage = $14, 000 annually $500, 000 worth of Term Coverage = $300 annually. The difference of $13, 700 extra you’re paying to get Permanent Life coverage.
What’s the differentiation between Term Life Insurance vs Entire Life Insurance? Term Insurance is to get off a set term or time period from 12 months and generally up to 3 decades. Entire life’s coverage to get the rest of your life PLUS an Investment part held by the life insurance coverage supplier. Do you ever see an automobile insurance broker attempt to add an Investment to your auto coverage? No, you do not. With Whole life coverage, it’s Term insurance Investment Portion with you paying premiums to get the rest of the life. You need it to defend your family that depends upon the breadwinner income whether it be the husband working, the wife working or both parents working to bring money in to look after the family. Life Coverage is there in order that if something occurs to the income provider the income may nevertheless come in and the family isn’t economically devastated.
Avoid Expensive Auto Repairs
Is there something more stressful than having to cope with an unexpected auto trouble? Apart from having to find out your transport scenario, you also provide to discover a way to fix the problem without causing lots of financial stress. If you need to avoid last minute vehicle repairs, you need to work more on the defense than your offense. The saying An ounce of avoidance is worth a pound of remedy has lots of truth to it – particularly with regards to automobiles. Lots of typical auto problems might be prevented with proper maintenance. Instead of waiting for the vehicle to run curiously before you give consideration to the Check oil light, remember to change the oil every several thousand miles as well as to top it off when it is low.
Be sure to rotate the tires every few hundred miles and in addition to check your air levels. These simple actions could assist in preventing a lot of future trouble. Many technicians have rules about their clients buying components from outside resources. Some do it since they don’t need their customers purchasing components they cannot really use, but much more do it because they could earn money charging their customers for components along with their repair services. Find a mechanic that is willing to enable you to purchase your very own parts and you’ll save a lot. You may readily find used car components by doing a search on our website.
Sometimes it’s a good idea to use mechanics that focus on fixing your make and model of automobile. Most important automakers have service centers for their clients that focus on repairing and enhancing their vehicles. These service centers could save you a ton of cash on repair costs, especially whether you’ve a vehicle that is still under warranty. Once you get perhaps a dent or perhaps a ding in the vehicle, do not run to the closest auto body shop if you wish to conserve money. These stores do good work, but all that sanding, painting, and clear coating may cost you a lot.
Auto Insurance Benefits for Classic Cars
Classic automobile insurance is a real money saver that’s fantastic for collectors. EZ insurance coverage programs are ideal for fans who want to love their vehicles while having the satisfaction of knowing that their investments are well shielded. There are various resources to chew over when trying to find policies designed for classic cars and there are lots of advantages to having specialised coverage. Specialty insurance coverage programs are made to help individuals who’ve antique vehicles. Some of these coverages offer outstanding coverage with incredibly low rates compared to conventional policies. Classic car owners can rest assured they have the ability to get affordable insurance which offers great advantages.
It is hard to find a specialty auto insurance business that’s also in the occupation of appraising cars. Consumers should enter their investigations with the knowledge that the services were created to ensure the value of the antique vehicle. They’re in the business of making assessments without placing the value on a particular auto coverage policy. The firms do have techniques for ascertaining the value of the classic car. An excellent specialty insurance provider will work with you to discover a value for the antique vehicle. The process starts with an industry analysis to make sure that the collectable car will be given a proper worth.
The company also makes other factors in the process as well. An original stock car is fantastic for insurance agencies to evaluate because they’re well defined. There are various pricing resources and guides offering fast responses for suppliers and owners. The resources serve as general recommendations to follow. There are other considerations which must also be made even for an escort original vehicle. A well kept motorized vehicle will certainly be worth a lot one or more which requires some repairs and maintenance. Newly restored cars are a bit more complicated in that the recommendations are more from being accurate since the restoration may differ from one vehicle to another. Once you’ve your assessed value established, you’re well on your way to get great coverage for your antique vehicle. A classic automobile insurance program is fantastic for anybody who has a collectable of this sort. EZ Insurance is the leading website to grab the lowest insurance rate available for your location.
Choosing Your Deductible: High or Low?
When deciding on your auto insurance, there are several factors to consider. You have your monthly premium that you have to pay, and you also have your deductible amount that you will pay in the event of an accident. Most people understand the general rule that the higher the deductible you have, the lower your premium will be. For many people, that seems like a great way to save money each month. However, is the decision that easy? Should everyone just select the highest possible deductible in order to save money?
In short, selecting the highest possible deductible amount is not the best option for many people. Keep in mind that whatever amount you select is the amount that you will be required to pay if you get in an accident. While no one thinks they will ever find themself in that situation, the reality is that accidents do happen. If your deductible is $1500, you need to make sure that you have that money to pay in full before the insurance company will cover the rest. Being realistic, you should select an amount that you could pay without putting too much of a strain on your budget or savings account.
Another thing to keep in mind is the amount that your premium will go down as a result of your deductible going up. For some people, the change may be significant and the risk of having the higher deductible may be worth it. However, depending on your auto insurance company, the age of your car, your driving record, and other related factors, you may end up only saving 30 or 40 dollars annually. In this situation, having the higher deductible doesn’t save you much money, and could cost you way more in the long run.
It is important to keep in mind your driving situation when considering your deductible amount. If you drive in an area without much traffic and have a perfect driving record, it would make sense to consider raising your deductible. On the other hand, if you have a history of accidents or live in a big city with a lot of heavy traffic, your risk for getting in an accident is much higher. Therefore, having that higher deductible will most likely only cost you more money than you are saving on your premium.
Selecting your amount of insurance coverage and your deductible amount is no easy decision. When making your choice, consider both your monthly budget and any savings you have that could serve as an “emergency fund.” While it may be tempting to try and save as much as possible month to month, you could end up in a way worse situation where you have to take out a high interest loan in order to pay for damages to your car. Be sure to take the time to consider your situation, weigh the pros and cons of a high deductible, and get quotes from different companies to see which is the best fit for you.
Top 5 Things to Do This Summer in Austin
After an unusually wet and stormy spring, it looks like we’re finally free of the torrential downpours that have been plaguing us; yes, it’s finally starting to look like summer here in Texas! And with the sunny weather and release from school, families start hunting for fun activities to enjoy in and around the Austin area. Well, look no further: we’ve compiled an easy list of the top 5 things to do in Austin this summer! All are family-friendly, and most are free!
- Blues on the Green. An Austin summer tradition! This free concert in Zilker Park is sponsored by KGSR and has been growing larger every year since its inception 25 years ago. Perfect for families and a dog-friendly scene, this event has gone from concerts every other week to once monthly, with Shakey Graves, Bob Schneider, and Jamestown Revival in the lineup for the 2015 season. Our advice? Bring a big blanket, cold drinks, mosquito spray, and park in the Austin Highschool parking lot – it’s just a short walk across the footbridge under Mopac and over to Zilker Park, and you’ll be saved a lot of stress when it comes to finding a parking spot!
- Barton Creek Greenbelt. Go now! Pack your bottled water and your dogs up and hit the greenbelt soon to take advantage of the full creek, because as we all know, Barton Creek sits dry and dusty for most of the summer. But the recent rainfall is sure to provide hikers with plenty of picturesque swimming holes, and as summer’s high temps haven’t quite revved up yet, now is the perfect time to go.
- Jacob’s Well. This beautiful karstic spring is located Northwest of Wimberley in the Texas hill country. Though relatively small in area, the spring is fed by cool, clean aquifer waters and is nearly 140 feet deep and has been explored by many underwater cave divers in the past. Due to increasing popularity of this natural resource, those wishing to swim must now book 2 hour blocks of swimming time online.
- Zilker Hillside Theater – Hairspray. Starting July 10, the Zilker Hillside Theater will be putting on performances of the popular Broadway musical Hairspray every Thursday-Sunday evening for free at the Beverly S. Sheffield outdoor theater. Bring blankets and snacks: lawn chairs are only allowed in certain areas of the park.
- Concerts in the park. The Austin Symphony performs every Sunday evening during the summer at the Long Center on Auditorium Shores. A lovely idea for date night, or fun for the family, the Symphony alternates musical styles between brass, woodwinds, strings, and big band each week.
With all these great things to do, we always wonder – why would we want to live anywhere else? Leave a comment with your favorite Austin summer traditions!
Flooded Car Fraud
It’s been a long while since Central Texas has seen such a wet month of May, and while rainfall filling up the lakes and aquifers is a welcome way to start the summer, the tornados, pounding hail, and massive flash floods are not quite as appreciated. These storms have caused an estimated $250 million in auto insurance losses. As always, there are those lurking in the shadow of disaster, ready to profit off of other people’s misfortunate. In this case, it’s used car dealers who are taking these flooded, totaled cars and trying to sell them to unsuspecting buyers. So how do you avoid potentially purchasing a previously flooded car? Some signs are obvious, others less so.
- First and foremost, do a VIN check on any used car you’re thinking of buying. Cars that have suffered massive flood damage and are declared a total loss by an insurance company should be marked as such. Only about 88% of insurance companies report to VINCheck though, so it’s possible for these reports not to be entirely accurate.
- Look closely at the interior of the vehicle. Brand new upholstery, particularly if it doesn’t seem to match the carpet, is a pretty dead giveaway that the dealer is trying to cover up water stains and mold from flooding. Pull up the carpet and look for water residue and dried stains there as well.
- Get a good whiff of the interior of the car. No amount of cleaning and air freshener can hide the deeply ingrained faint damp smell that accompanies flooded cars.
- Rust in high places or under the gas pedal often indicate prolonged water exposure.
- Dealers will do a decently thorough cleaning of flooded vehicles, but may miss places like the glove compartment or under the seats, so check these spots for mud and silt.
- Does the car’s price seem too good to be true? Flooded vehicles are often offered at very low prices to move them faster, with fewer questions.
- Of course, the best and most failsafe way to make sure you aren’t purchasing a dud vehicle is to hire an inspector to pop the hood and check things out.
It’s kind of sad that buyers would need to go through this checklist, but unfortunately there are plenty of used car dealers with shaky moral compasses. So be safe rather than sorry and put in the extra effort to really investigate a potential used car purchase, especially soon after mass flash flooding.
Driving During a Downpour
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There’s no doubt about it – spring has been in full force for awhile now here in central Texas. Like the fall, it’s a mercurial time where the weather is concerned: a perfect, sunny 72 degrees one day, steamy and humid the next, followed by torrential rainstorms (all this within the same week, mind you.) It’s the last that concerns most drivers. Although we desperately need every drop of rain we can get, often the downpours happen in the wrong places – namely, not over Lake Travis in the middle of the night, but rather over I-35 and Mopac, during Austin’s morning and evening commutes. When this rain occurs, the whole game of driving changes, and since the vast majority of our days throughout the year are hot and dry, we often forget the new rules. With storms forecasted over the next week, take a minute to brush up on these rainy day driving tips:
Drive slow. We’ll start with the most obvious. We always advise to go the speed limit, but depending on the severity of the rain you make need to take it down 5-10 MPH or more. Stormy days are the time to become hyper-aware of your surroundings – slick roads make it extra important to keep adequate distance between you and the driver in front of you. Yes, this means you’ll probably get cut off by more reckless drivers changing lanes, so that you’ll continually have to slow down to allow a safe distance to open up again, but the minor inconvenience is certainly worth it. In order to accommodate these speed changes, avoid using cruise control.
Be aware of hydroplaning. Hydroplaning occurs when water builds up in front of the tires before the car’s weight can push it out of the way. This causes your car to skid uncontrollably. To try and avoid this, don’t slam on your breaks – rather, alternate applying and releasing the breaks. Never hit the gas hard when taking off from a stoplight: accelerate slowly. Finally, be sure to slow down amply when making turns. If you do start to hydroplane, it’s also important not to jerk the steering wheel – just release the gas and steer straight until you regain control.
Watch for water on the road. In central Texas, flash flooding is a major problem. There’s a good reason for those low water crossing warning signs. Water can make a road impassable in a matter of minutes, so when in doubt…turn around. Find an alternate route, or wait it out. Water often builds up along the sides of highways and curbs in residential areas, meaning if you’re in the lane near the shoulder you run the risk of hitting pockets of deep water that can spray up, temporarily blocking your view or even worse, causing you to hydroplane. So once again, go slow.
Finally, don’t forget to turn your headlights on and keep the AC pointed at your windshield to avoid fogging. If it’s raining so hard you can’t even see the car ahead of you, consider pulling over to wait it out. It probably won’t be long – after all, as the old saying goes, “If you don’t like the weather in Texas, wait 5 minutes.” Rainstorms may not last long, but they do make driving much higher risk, so be careful out there!
[:en]
There’s no doubt about it – spring has been in full force for awhile now here in central Texas. Like the fall, it’s a mercurial time where the weather is concerned: a perfect, sunny 72 degrees one day, steamy and humid the next, followed by torrential rainstorms (all this within the same week, mind you.) It’s the last that concerns most drivers. Although we desperately need every drop of rain we can get, often the downpours happen in the wrong places – namely, not over Lake Travis in the middle of the night, but rather over I-35 and Mopac, during Austin’s morning and evening commutes. When this rain occurs, the whole game of driving changes, and since the vast majority of our days throughout the year are hot and dry, we often forget the new rules. With storms forecasted over the next week, take a minute to brush up on these rainy day driving tips:
Drive slow. We’ll start with the most obvious. We always advise to go the speed limit, but depending on the severity of the rain you make need to take it down 5-10 MPH or more. Stormy days are the time to become hyper-aware of your surroundings – slick roads make it extra important to keep adequate distance between you and the driver in front of you. Yes, this means you’ll probably get cut off by more reckless drivers changing lanes, so that you’ll continually have to slow down to allow a safe distance to open up again, but the minor inconvenience is certainly worth it. In order to accommodate these speed changes, avoid using cruise control.
Be aware of hydroplaning. Hydroplaning occurs when water builds up in front of the tires before the car’s weight can push it out of the way. This causes your car to skid uncontrollably. To try and avoid this, don’t slam on your breaks – rather, alternate applying and releasing the breaks. Never hit the gas hard when taking off from a stoplight: accelerate slowly. Finally, be sure to slow down amply when making turns. If you do start to hydroplane, it’s also important not to jerk the steering wheel – just release the gas and steer straight until you regain control.
Watch for water on the road. In central Texas, flash flooding is a major problem. There’s a good reason for those low water crossing warning signs. Water can make a road impassable in a matter of minutes, so when in doubt…turn around. Find an alternate route, or wait it out. Water often builds up along the sides of highways and curbs in residential areas, meaning if you’re in the lane near the shoulder you run the risk of hitting pockets of deep water that can spray up, temporarily blocking your view or even worse, causing you to hydroplane. So once again, go slow.
Finally, don’t forget to turn your headlights on and keep the AC pointed at your windshield to avoid fogging. If it’s raining so hard you can’t even see the car ahead of you, consider pulling over to wait it out. It probably won’t be long – after all, as the old saying goes, “If you don’t like the weather in Texas, wait 5 minutes.” Rainstorms may not last long, but they do make driving much higher risk, so be careful out there!
[:de]
There’s no doubt about it – spring has been in full force for awhile now here in central Texas. Like the fall, it’s a mercurial time where the weather is concerned: a perfect, sunny 72 degrees one day, steamy and humid the next, followed by torrential rainstorms (all this within the same week, mind you.) It’s the last that concerns most drivers. Although we desperately need every drop of rain we can get, often the downpours happen in the wrong places – namely, not over Lake Travis in the middle of the night, but rather over I-35 and Mopac, during Austin’s morning and evening commutes. When this rain occurs, the whole game of driving changes, and since the vast majority of our days throughout the year are hot and dry, we often forget the new rules. With storms forecasted over the next week, take a minute to brush up on these rainy day driving tips:
Drive slow. We’ll start with the most obvious. We always advise to go the speed limit, but depending on the severity of the rain you make need to take it down 5-10 MPH or more. Stormy days are the time to become hyper-aware of your surroundings – slick roads make it extra important to keep adequate distance between you and the driver in front of you. Yes, this means you’ll probably get cut off by more reckless drivers changing lanes, so that you’ll continually have to slow down to allow a safe distance to open up again, but the minor inconvenience is certainly worth it. In order to accommodate these speed changes, avoid using cruise control.
Be aware of hydroplaning. Hydroplaning occurs when water builds up in front of the tires before the car’s weight can push it out of the way. This causes your car to skid uncontrollably. To try and avoid this, don’t slam on your breaks – rather, alternate applying and releasing the breaks. Never hit the gas hard when taking off from a stoplight: accelerate slowly. Finally, be sure to slow down amply when making turns. If you do start to hydroplane, it’s also important not to jerk the steering wheel – just release the gas and steer straight until you regain control.
Watch for water on the road. In central Texas, flash flooding is a major problem. There’s a good reason for those low water crossing warning signs. Water can make a road impassable in a matter of minutes, so when in doubt…turn around. Find an alternate route, or wait it out. Water often builds up along the sides of highways and curbs in residential areas, meaning if you’re in the lane near the shoulder you run the risk of hitting pockets of deep water that can spray up, temporarily blocking your view or even worse, causing you to hydroplane. So once again, go slow.
Finally, don’t forget to turn your headlights on and keep the AC pointed at your windshield to avoid fogging. If it’s raining so hard you can’t even see the car ahead of you, consider pulling over to wait it out. It probably won’t be long – after all, as the old saying goes, “If you don’t like the weather in Texas, wait 5 minutes.” Rainstorms may not last long, but they do make driving much higher risk, so be careful out there!
[:fr]
There’s no doubt about it – spring has been in full force for awhile now here in central Texas. Like the fall, it’s a mercurial time where the weather is concerned: a perfect, sunny 72 degrees one day, steamy and humid the next, followed by torrential rainstorms (all this within the same week, mind you.) It’s the last that concerns most drivers. Although we desperately need every drop of rain we can get, often the downpours happen in the wrong places – namely, not over Lake Travis in the middle of the night, but rather over I-35 and Mopac, during Austin’s morning and evening commutes. When this rain occurs, the whole game of driving changes, and since the vast majority of our days throughout the year are hot and dry, we often forget the new rules. With storms forecasted over the next week, take a minute to brush up on these rainy day driving tips:
Drive slow. We’ll start with the most obvious. We always advise to go the speed limit, but depending on the severity of the rain you make need to take it down 5-10 MPH or more. Stormy days are the time to become hyper-aware of your surroundings – slick roads make it extra important to keep adequate distance between you and the driver in front of you. Yes, this means you’ll probably get cut off by more reckless drivers changing lanes, so that you’ll continually have to slow down to allow a safe distance to open up again, but the minor inconvenience is certainly worth it. In order to accommodate these speed changes, avoid using cruise control.
Be aware of hydroplaning. Hydroplaning occurs when water builds up in front of the tires before the car’s weight can push it out of the way. This causes your car to skid uncontrollably. To try and avoid this, don’t slam on your breaks – rather, alternate applying and releasing the breaks. Never hit the gas hard when taking off from a stoplight: accelerate slowly. Finally, be sure to slow down amply when making turns. If you do start to hydroplane, it’s also important not to jerk the steering wheel – just release the gas and steer straight until you regain control.
Watch for water on the road. In central Texas, flash flooding is a major problem. There’s a good reason for those low water crossing warning signs. Water can make a road impassable in a matter of minutes, so when in doubt…turn around. Find an alternate route, or wait it out. Water often builds up along the sides of highways and curbs in residential areas, meaning if you’re in the lane near the shoulder you run the risk of hitting pockets of deep water that can spray up, temporarily blocking your view or even worse, causing you to hydroplane. So once again, go slow.
Finally, don’t forget to turn your headlights on and keep the AC pointed at your windshield to avoid fogging. If it’s raining so hard you can’t even see the car ahead of you, consider pulling over to wait it out. It probably won’t be long – after all, as the old saying goes, “If you don’t like the weather in Texas, wait 5 minutes.” Rainstorms may not last long, but they do make driving much higher risk, so be careful out there!
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Why did my premium go up?
Beyond requirement by law, we all recognize the value in carrying auto insurance: an appropriate policy could save you thousands in the unfortunate event of an accident. That doesn’t stop most people from sighing a little with each monthly payment, or from being a little miffed when renewal comes around with an unexpected premium increase. The concept of insurance premium is a little abstract – it’s hard to wrap your mind around. While most insurance companies won’t explicitly release every factor that goes into calculating premium or even what those formulas are, there are several key ingredients that are often the culprits of premium increases. Although your insurance agent is always the best source for in depth explanation of rate increases as they apply directly to your policy, below is a brief explanation of some common culprits.
Driver changes. Did you add a new driver? Did somebody have an accident? All of these can have very big impacts on your premium. The current trend in the insurance world is to rate premium on a household, rather than individual, level. Older models would pair one vehicle to one driver under the expectation that each person has their own car that is solely driven by them. So your spouse’s driving record and vehicle would affect only their policy, not yours. This was fairly unrealistic as in most families drivers share cars between them. So now, when a new driver is added to your household, it will often increase the premium for every vehicle on your policy, as each vehicle is now considered ‘higher risk’ by having another driver. The biggest changes are generally seen when added a new, 16 year old driver. Even if your teen has his own car, insurance companies see the potential risk of him occasionally using your car, and will increase the rate across all vehicles accordingly. The same principle applies when one driver in your household has an accident – they are now considered a ‘high risk’ driver who will be rated on every vehicle in the household.
Location changes. Did you move? Zip code is another factor that goes into rate determination. In general, city dwellers can expect a higher premium due to the higher risk of increased traffic. The further you live from the city hub, the lower your risk.
Age changes. Did you have a birthday? We all know that the highest risk drivers are the very young (16-21) and the very old (65+), but what happens in between? Often insureds will be divided into age brackets which are then scaled into highest and lowest risk groups. So it’s possible to see a rate increase when you move from being considered the lowest risk age of one group (age 24 in the group 16-24) to the highest risk age of the next group (age 25 in the group 25-34).
Statewide changes. Insurance is all about shared risk, so unfortunately it’s also common for the premium increase you see to have nothing to do with you personally at all. Sometimes there must be blanket, statewide premium increases to help compensate for high loss frequency and high claims payouts in the state. Fortunately these increases tend to be the smallest when compared to other culprits.
Vehicle changes. Did you pull your convertible out of storage status for the spring and summer months? Buy a new car? Obviously changing a car’s status from storage to active will increase the premium on that vehicle, and a whole other car will certainly see an increase in premium, but sometimes these acts can prompt the entire household to be re-evaluated. What does that mean? It means if your policy renewed before one of those statewide increases discussed above took place, and this re-evaluation is taking place after, you could get hit with the increase in the middle of your 6 month term. Ouch!
There are so many factors that go into the “black box” for determining insurance premium that’s impossible for even the company underwriters to break down every dollar into exact risks. But 95% of the time, if you’re seeing an increase, blame one of the culprits above!
Homeowner’s Insurance Overview
Most people consider homeownership to be a real “rite of passage” into the adult world, and not without reason. Although the search for and purchasing of the perfect new home can be exhilarating, owning your home comes with a whole new slew of responsibilities and considerations. New home owners may feel like they’re drowning in a sea of seemingly useless paperwork as they creep slowly toward closing on their dream home. All of this paperwork has a purpose, however, and one of the most important steps in closing on a home is choosing a home insurance provider and adequate coverage. Home insurance coverage options and terminology may be new territory for fledgling home owners, but it’s not as complicated as one might think. Consider the following common coverages: many insurance companies will package them all together based off the home’s value, but it’s good to know what they mean regardless.
Dwelling coverage is for your actual home and separate structures, such as a detached garage. Premium is determined from a number of different factors, from the very obvious (appraised home value, roof age, construction materials, foundation type) to the slightly more obscure (trampoline in the backyard, Laundry room location); this type of coverage is what most people think of when they think “home insurance”. If your house is destroyed by fire, this is what will be used to rebuild it. It’s important to clarify with your agent what perils are covered: usually, policies that protect against flood damage must be purchased separately, and if you live in certain regions (usually coastal) you may be asked to exclude coverage from wind/hail perils, so make sure you really are being covered for everything you need.
Personal property coverage includes anything you’d take with you if you were to move (furniture, electronics, clothes, etc.) and often comes as a fixed percentage of your home’s value, meaning if your home was valued at $200,000 and the fixed percentage was 10%, you’d have up to $20,000 for replacement of your personal possessions in a total loss situation. Check with your agent to make sure you’ve got enough coverage for your possessions– you can usually raise the amount for additional premium. If you have one or two items of extraordinary value, you may also consider scheduling personal property (also known as adding a floater). This is often used for valuable jewelry, furs, paintings, or antique guns.
Liability helps when accidents result in personal or property damage to someone else on your property and you are legally obligated to pay for the damage. This does include the actions of pets, and dog bites/attacks are one of the most common liability claims. Accidents may seem unavoidable, but you can do your best as a homeowner to prevent them by keeping pets secured and your lawn/sidewalk obstacle free by putting toys & garden tools away.
This is just a basic overview of the three main coverages for a home policy: every insurance company does things differently, and may have different rules/fine print, so we cannot stress enough the importance of good communication with your agent. It’s their job to know the ins and outs of the business, not yours, so as long as you have a basic knowledge of what you need and the value of your home/possessions, an agent will do the rest!