If you’re a homeowner, you’ve probably received several home insurance solicitations over your years of home ownership. And if you’re like me, you probably take a look at them to at least see what the rates are in comparison with what you’re currently paying. Unlike me though, you might not know what else to look for to more accurately compare them with your current insurance policy.
Some of my long-standing clients have come from home insurance solicitations that I sent out a few years back so I’m not knocking insurance agents and/or companies for sending them out. On the other hand, what I’d like to do is show you some of the home insurance solicitations that I received this year and give you an idea of what to look for when comparing. I’ve marked through the names of the insurance agents/agencies in order to protect the innocent (or guilty?).
As you’ll see from the solicitation below, this carrier’s rate is assuming that I will also place my auto insurance with them and that I have a monitored burglar alarm. All of the quotes I’ve received include these discounts and since my current policy also includes these discounts, I won’t bring this up again. It’s just important that you are aware of this if you are with an auto insurance carrier that you are happy with that doesn’t also write home insurance.
The most important thing to take notice of in this quote is the 3% wind/hail deductible, which includes hurricanes. This means that if a hurricane or hail storm were to roll through town and damage my roof that the damage would have to be more than $6,133.20 before this insurance company would pay anything. Most insurance companies have a minimum 2% deductible for wind/hail in Harris County, but you could easily find a lower deductible if you live north of Harris County. There are several insurance companies that have broken this deductible down so you could have a 2% deductible for hurricanes/tropical cyclones while having a 1% deductible for wind and hail.
3% Wind/Hail Deductible - Home Insurance Solicitation
In following soliciation you’ll see that this is one of those insurance companies that breaks down the wind/hail deductible so I have one deductible for wind and hail and another deductible for hurricanes. This quote looks pretty competitive, but the hurricane deductible is a very high 5%. I’d have to have more than $11,300 in damage from a hurricane before this company would pay anything. If you live on the coast, you may not have any other options. On the other hand, I have options and I’m pretty sure I could get close to paying for replacing my roof myself before I’d receive a dime from this insurance company. I’d pretty much only have protection from a hurricane if it did significant damage to my house.
5% Hurricane Deductible - Home Insurance Solicitation
The image below is a copy of my current home insurance policy. Note that the rate I’m paying is lower and I still have a 1% deductible for any and everything. This means I’d have to have no more than $1,980 before this insurance company would pay for a claim.
My Current Home Insurance Policy
While having a higher wind/hail deductible can help to lower your home insurance premium, it’s important to compare the deductibles when comparing home insurance solicitations. All are not created equal.
Another thing you’ll want to consider when comparing home insurance policies is the type of policy the insurance company is offering you. In Texas, the policy forms I’ve seen the most frequent are HO-A, HO-A plus, HO-B, and HO-3. An HO-A plus policy will provide you with coverage for most of your typical claims, but an HO-B or HO-3 will give you even more protection. Having a basic HO-A policy is something you’d probably want to avoid unless you really don’t have any other options.
You can compare just about any carrier’s policy in Texas by visiting – http://www.opic.state.tx.us/
Please give me a call or shoot me an email if you’d like to see what we can come up with for your home insurance needs. We’ll be happy to help you compare it to your current policy and walk you through any recommendations.
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