BASIC THINGS YOU SHOULD UNDERSTAND ABOUT HOME INSURANCE

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Many of the benefits of Homeowners insurance are known to a great number of people, but we can’t deny the fact that many of us think we can get away without it. Talking about home insurance, a prestigious writer, Laura Ingalls Wilder, once commented that, “Home is the nicest word there is.” Most of us feel that way about the place we call “home”. It is quite disheartening to hear stories of damaged to or loss of a house, which is someone’s home. It is even worse when the homeowner didn’t have the house insured or chose to improperly insure it. Those of us who own a house that we call “home” need to protect it as well as we can afford to both for our own sake and that of our families.

Homeowners Insurance Company Dallas

THE BASIC CONCEPT OF HOME INSURANCE

Homeowner’s insurance companies exist to protect your house and your personal belongings in case they are damaged from a covered peril. This is a shared resource. The reason it works is because many of us come together to insure against losses that will only happen to a few of us over a given period of time, like a year. The pool of money that is collected provides the resource by which insurance companies can pay claims for the few who have covered losses. The bigger the pool of money and the fewer the claims it must pay helps to establish the cost of insurance to us. These are not all the factors involved. Some others are credit scores, prior loss history of the owner and of the property to be insured, as well as the actual cost of replacing the lost property, if that should be required. The loss of an $80,000 house would not be priced the same as the loss of a $500,000 house.

HOME INSURANCE COVERAGE

Earlier I made reference to the term “covered peril”. And you might ask, “what is a covered peril”? A covered peril is the type of loss the company is insuring your property against. An example of a covered peril would be losses occurring from a fire. Not all homeowner policies are made the same. Some specify the types of peril that they cover while others are classified as “all risk” policies. Named peril policies will only cover your property if the cause of loss was one of the perils that they stipulate in their policy, while an “all risk” policy covers all the eligible risks associated with loss under that policy. Some of us a driven by price, and, yes there are cheaper policies out there, but do you know if they actually cover as much as you might need? Talking to a knowledgeable agent about the policy you have and what is available in your area can have great advantages for you both in coverage and in pricing. It is worthy of note that ‘home insurance’ is a generic term. A person, who searched for house insurance companies Dallas because he wants to insure his small home with little items in it, will definitely pay and cover less than someone who searched for the same thing to insure a 5 bedroom mansion, with gold bars in it and superfast cars parked outside. It is however better to think of the coverage as either buildings or contents insurance.

PHYSICAL BUILDING INSURANCE COVERAGE

This type of insurance typically covers the structure of your house. The structure can generally includes things like interior and exterior walls, roof, windows, and doors. Permanent fixtures and fittings, such as bathrooms, kitchens, central heating storage tanks, and permanent solar panels, are also covered in this type of insurance

CONTENTS INSURANCE COVERAGE

Quite simply, this coverage provides for the contents of your house. Therefore, if you are planning to insure the contents of your new house in Texas, and have just contacted some homeowners insurance Texas companies, you should be expecting to get coverage for items like furniture, household goods, expensive or high risk items, as well as some of your other personal belongings. It is quite shrewd to insure these items against loss or damage, for no one knows when these abominable events may transpire. Have you just contacted some homeowners insurance companies, and still find it difficult to identify a good homeowners insurance policy or are still confused about what it covers? If the answer is yes, give Texas P&C Insurance Agencies, Inc. a call and we would be happy to discuss the policy you have and help you find the policy you want and need, at no cost to you.