Have you noticed that monthly premiums for homeowners insurance policies in Texas have exploded? Particularly in the Dallas-Ft Worth metroplex? If you are in Collin or Denton counties, it feels like you are needing to sell a kidney just to satisfy the premiums being requested by the insurance carriers. The numbers have become outrageous. The independent insurance agents at Insurance For Texans certainly understand your frustration and feel the pain along with you. We're all looking for dollars in our budgets right now as a result of the inflation that has gripped our economy over the last two years. But here's the thing - while it's understandable that you want to save money, we have heard story after story of Texas homeowners either having claims denied or non-paid because they did not understand what their homeowners policy actually said. And sadly, there are insurance agents out there pulling some tricks in the name of saving money that could end up costing you a lot more in the long run.
If you've got three minutes to spare, we will shed light on three important factors you must consider if you're looking for price relief on your home insurance policy. Let's make sure you're not caught off guard, and see how True Texas Home Insurance can save your ass-ets instead of a few dollars a month.
Top Three Tricks Pulled To Save You Money That Cost You Thousands
We have noticed a trend with agents that worry more about making a sale than they are about making sure that your house is going to be ok. Home insurance is this thing that no one really wants to buy, but we all do either because we have to because of mortgage lenders or because we don't want to pay to replace our house or things. Seems simple enough until the homeowners insurance becomes a car payment rather than a minor additional cost. But now that we are in the car payment phase of this scenario, people are less concerned with coverage limits and more concerned with their limits to pay premiums. But this is where homeowners get in trouble. Talking to an insurance adjuster after a homeowners insurance claim has been filed is not when you want to finally understand exactly what your insurance provider does and does not cover. With that in mind, here are the top three things that we see less than ethical insurance agents make adjustments on that end up with a disgruntled Texan on the other end.
1. Watch Out For Your Wind/Hail Deductible Going Up!
Traditionally, most homeowners policies in Texas had a 1% wind and hail deductible so long as you did not live on the Coast. However, now things are changing. In the last few months, some insurance companies are increasing that percentage to 2% or even higher. It's important to understand that this directly impacts your financial responsibility in the event of a hail claim. The 2% is not your portion of the claim cost. It's 2% of the rebuild value of your home which is going to make that number several thousand dollars.
For instance, if the dwelling value on your house shows that you would need $300,000 to rebuild it and you have a 5% wind and hail deductible, you'd be responsible for $15,000. That's because 5% of $300,000 is $15,000. We aren't trying to give you flashbacks to high school algebra, but this is reality. Unfortunately, that means you won't receive any money for the property damage on a hail claim if your deductible is too high. Given the way hail falls in North Texas, it's easy to understand why this is the number one problem Texans have with homeowners insurance claims.
2. Beware of roof payment schedules:
Another trick we're seeing more frequently is the use of roof payment schedules by insurance companies. This is a phrase made up by a sly marketing agency that means they assess the actual cash value of your roof instead of covering the full replacement cost. Insurance providers love this one because they are reducing how much money that they will have to pay you for each year your roof is on your house while your premiums keep going up!
If your roof is older, they may subtract a significant amount from your claim, leaving you to cover the lion's share of the replacement cost. For most insurance carriers, if your roof is seven years old you will be getting a check that is less than 50% of the cost to replace your roof. While this tactic may slightly reduce your premiums, it will ultimately cost you a substantial amount of money when it comes time to replace your roof. Don't let your roof leave you exposed to unnecessary expenses in the event of claim.
3. Ensure you have adequate dwelling coverage:
It's easy to believe that a total loss of your home will never happen to you. No one expects a tornado the day after Christmas, but we all remember that natural disaster in Garland a few years back. And since we have a lot of tornadoes in this state compared to others, you definitely don't want to find out that you're underinsured. Some agents may tempt you with lower premiums by shortchanging the dwelling coverage, the amount needed to rebuild your home entirely. But be cautious; skimping on this coverage could lead to major financial complications down the road. Building materials and labor costs have inflated with everything else, so it's essential to properly account for these factors. While it may only save you a few pennies per day, the consequences of being underinsured can be financially devastating.
Texas Home Insurance Policy Options For You
We understand the desire to save money on your home insurance premiums. We think that the homeowners insurance companies have lost their minds just like you do. But it's also vital to navigate your choices wisely when it comes to your biggest investment. Don't fall victim to these three deceptive tricks being offered by insurance agents that offer short-term relief but leave you exposed to higher financial risks. It's why we offer our True Texas Home Insurance guarantee regardless of which Homeowners insurance company that we end up placing you with. We want you to understand what home insurance coverage that you do have prior to the conversation with the claims adjuster.
At Insurance For Texans, we work for you and not some big home insurance company. That means that we have your best interests at heart. Stay smart, stay informed, and protect what matters most!
Give us a call at 469-789-0220 or click that button below and let us help you avoid any surprises.