When you are looking for mortgage rates to buy your own dream home, a lot of people forget about home insurance policies. Texas insurance policies require lots of attention. If you are a new homeowner, the right kind of Texas home insurance can protect your investment in the long run. With this being said, here are few important facts you should know about home insurance.
As mentioned previously, homebuyers should treat insurance from texasinsurancequotes.net as a basic part of their investment and obtain coverage for their entire home! With home inspection, you should request for a Comprehensive Loss Underwriting Exchange report (CLUE). You can obtain this report from LexisNexis Risk Solutions. They will give you a detailed document of all claims filed against the home (or property) in the past five years. The report will help you verify the property’s insurability and calibrate a suitable premium.
Different Types of Texas Home Insurance
In general, home insurance policies will cover your property and belongings. There will be liability for any property damages or injuries you, your dear ones and pets’ cause. Texas home insurance policies are following the standards in many other states. Yet, there are some policy definitions unique to Texas. Here are few common home insurance types in most states:
- “Bare Bones Policy” alias HO-1 protects homes against 10 different perils.
- “Broad Policy” alias HO-2 covers the property against 16 types of disasters.
- HO-3 covers disasters that are specifically excluded. This includes nuclear accidents, earthquakes, floods, government action and war.
- Co-op and condominium owners can use the HO-6 policy to take care of structural parts, liability and personal properties.
- If your home is very old, you need the HO-8 policy. This policy will reimburse all replacement costs with depreciation. However, your home has to be evaluated carefully. Some older homes don’t quality for any
Know Your Policy
As you buy Texas home insurance, you should be aware of things the policy doesn’t cover. Standard insurance policies don’t cover many things. For example, earthquakes and floods are not covered by standard insurance. To get coverage against these disasters you must purchase a separate policy. The need for these policies depends on your region and financial status.
Finally, you should have an insurance to rebuild the property and not the current market value. The cost to rebuild will not include your land value. The final value depends on material and labor costs.