When we talk about homeowners insurance for North Texas, we always begin with the most important foundational element. Dwelling amount coverage is the single most important thing to get right.
Without having the proper amount to rebuild, you're going to find yourself in a precarious situation and possibly in a financial pickle. Grapevine homes are not cheap and without enough coverage, that's not much of a policy.
People often wonder if they have too much or too little when it comes to dwelling amount. It is an estimate after all, and there's really not a justification for trying to inflate the amount or leave you without in the case of a need to build again.
When a homeowner asks us to lower this number, we get nervous. We think you'll understand why.
How Do We Determine the Estimate?
Square footage is square one. The age of the home always factors in. Size helps to determine the necessary amount of construction and gives an idea of what will be used in regard to materials. Foundations today are not the foundations of the 1960's. This requires different methods and materials to be used. Neighborhoods and zip codes make actually factor in. A two-story home in Silver Lake will probably have different construction than an older ranch home build in Hurst.
No, this method isn't perfection but it does help us start on a solid estimate.
The second thing we do is fill in more holes by plugging into our estimating tool the stories, bedrooms and bathrooms that are included in your home. Flooring materials, ceiling height, built-ins, high end finishings and lighting, there's a lot of detail we enter in, including the cost to prep the site of a rebuild.
Show Me the Number!
Now that you see what goes into producing the number, what gives us the assurance that it will be enough? In general, you can count on rebuilding a home to at least be done for $90 to $100 per square foot. It is going to be a one-off build and not the high-volume build of tract home builders, so factor in the extra expense.
If you are adding fancier finishing, which let's face it, are found all over Grapevine homes, the cost per square foot can easily climb faster than you can say hand-scraped hardwood or Italian marble counter tops.
Is There Anything Else I Should Know?
Numbers to rebuild fluctuate. Building booms come and go. Cost of materials can increase and decrease with demand. This will play a part on deriving an estimate.
Catastrophic events add complexity. Hurricane Harvey cause materials and labor to be routed toward the Gulf Coast in the months following the wide-spread destruction. Prices skyrocketed and though those numbers have decreased, it shows what an event like that can do.
Lastly, not every insurance company is the same in regard to what the put importance on in an estimate. There are commonalities, yes, but some operate differently in how they weigh certain factors.
One of the many things we feel confident about here at Insurance For Texans, as a local, independent insurance agency, we know the carriers we partner with very well. It helps us determine what options work best for homeowners as we look to secure coverage for you.
You may be wondering what to do. If this has brought up questions for you, we want to talk with you. Coverage for the right value is our concern and we work for you to gain that while not working for the big insurance company.
