Texas Homeowners Insurance Information
Whether you own a house, condo or townhouse, for
most people their home is their most important
investment. Texans Insurance & Financial Group of
Sugar Land, TX offers Texas homeowners insurance
policies that have flexibility to meet your individual
needs and above all, provide you with the security that
comes only from the knowledge that your home is
safe. Insurance for your home is one of the most
popular and important forms of personal insurance
and the typical Texas Homeowners Insurance policy
has two main sections:
Section I - Insurance coverage for your property
as follows in items A through D:
Homeowners insurance is often required by lenders to obtain a
mortgage and nearly everyone, whether you own or lease property,
should have the protection of Texas homeowners insurance.
Texas Homeowners Insurance FAQ
Click on the link below to fill out a secure quote request form for an
affordable Texas Homeowners Insurance policy that will provide
excellent home insurance coverage at an affordable cost. Or you can
speak with our Texas Homeowners Insurance specialist toll free at
(800) 747-6140 to discuss the policy features.
Personal liability in a Texas homeowners insurance policy is also an important part
of having security from accidents that may occur on your property. We suggest
you choose coverage limits that are not less than those on other liability insurance
you own, such as car insurance.
Click on the link below to fill out a secure quote request form for an affordable
Texas Homeowners Insurance policy that will provide excellent insurance
coverage at an affordable cost. Or you can speak with our Texas Homeowners
Insurance agent specialist toll free at (800) 747-6140 to discuss the policy
features in more detail.
We are a Sugar Land, TX insurance agency offering affordable Texas homeowners insurance
policy premiums in the following towns, cities and counties in southeast Texas: Meadows,
Town West, Four Corners, Crabb, Booth, Thompsons, Fresno, Manvel, Pleak, Kendleton,
Eagle Lake, Sandy Point, Beasley, Rosenberg, Richmond, Orchard, Fulshear, Juliff, Arcola,
Needville, Frydek, Rosharon, Bonney, East Bernard, Lissie, Elm Grove, Spanish Camp,
Wharton, Guy, Bellville, Wallis, Pasadena, Deer Park, Houston, Pearland, Galena Park,
Jacinto City, La Porte, Bellaire, West University Place, Cloverleaf, Beaumont Place, Spring
Valley, South Houston, Iowa Colony, Hilshire Village, Humble, Houmont Park, Friendswood,
League City, Alvin, Mission Bend, Stafford, Missouri City, Texas City, Webster, Dickinson,
Baytown, Channelview, Highlands, Seabrook, Bacliff, La Marque, Jersey Village, Lake
Jackson, Surfside Beach, Algoa, Santa Fe, Barker, Katy, Sealy, Dayton, Angleton, Freeport,
Bammel, Kohrville, Bay City, Brenham, Addicks, Brookshire, San Felipe, Hockley, Waller,
Prairie View, New Caney, Beach City, Nassau Bay, North Houston, Hempstead, Tomball, The
Woodlands, Burr, Iago, Boling, Peters, Cat Spring, Burleigh, Waller County, Wharton County,
Brazoria County, Harris County, and Fort Bend County, TX. We can also offer affordable Texas
homeowners insurance policy premiums throughout the Lone Star state, including in
Beaumont, Austin, Waco, Fort Worth, Dallas, and San Antonio, TX.
Texas Homeowners Insurance Policy FAQ
Covered losses under a Texas homeowners insurance policy can be paid on either
a replacement cost basis or on an actual cash value basis. When "actual cash
value" is used, the policy owner is entitled to the depreciated value of the damaged
property. Therefore, the older the item is, the less money you may receive for it. If
you choose the "replacement cost" coverage, the Texas homeowners insurance
policy will reinburse the amount it costs to replace the property with something of a
similar type and quality at current prices.
An "All Risks" policy provides the broadest Texas homeowners insurance
protection because it will cover losses that are due to any peril except those
specifically excluded in the policy. A "Named Perils" policy covers losses that
are due to only those perils listed in the standard Texas Homeowners Insurance
policy and typically include fire, hail, windstorm, and other physical losses.
Texas Homeowners Insurance Policy FAQ
If your policy limit is less than 80% of the replacement cost of your home, you will
face a "coinsurance penalty," which means you'll have out-of-pocket expenses to
cover costs beyond the policy deductible you chose. For example purposes we will
assume your home's estimated replacement value (RCV) is $100,000. The co-
insurance clause requires you carry at least $80,000 (80% of your RCV). If you
chose to purchase only a $40,000 Texas Homeowners Insurance policy you would
be underinsured by half. Therefore, in the example the insurance company would
pay one-half of a loss less the policy deductible, so if you suffered a $10,000
covered loss to your house, condominium or townhouse and had a $500
deductible, your policy would only pay $4,500.
Texas Homeowners Insurance Policy FAQ
**The information, pictures, and other content in this website about particular insurance
services is only provided for informational purposes. Any decisions regarding your
insurance needs should be discussed with a licensed insurance agent.
Replacement Cost or Actual Cash Value
Texas Homeowners Insurance Policy FAQ
All Risks or Named Perils
Coinsurance Penalty
Personal Liability
SSL Secure
SSL Secure
Website Builder InsuranceWebsiteServices.com
Texans Insurance & Financial Group, Inc.
Copyright 2009-2011, All rights reserved
Texans Insurance
& Financial Group
101 Southwestern Blvd.
Suite 230
Sugar Land, Texas 77478
Fort Bend County, TX
Office: (281) 277-7800
Toll Free: (800) 747-6140
Fax: (281) 277-7801
Answer a few questions and
we can provide you with an
insurance quote by phone or
email. Choose a Texas
personal or business insurance
coverage from the menu above.
Texas Homeowners Insurance Policy Information
& FINANCIAL GROUP
TEXANS INSURANCE
Texas Homeowners Insurance Information
Your Sugar Land, Texas Trusted Agent Since 1991
Texas
Personal Insurance
Section II - Personal liability coverage as follows in items E and F:
Coverage A - Dwelling - covers you dwelling
(home), attached structures, built in appliances and
fixtures and permanently installed floor covering.
Most Home Insurance Companies will require you
insure your home to the current estimated
replacement cost of the home as calculated by
nationally recognized experts in this field.
Coverage B - Other Structures - covers other
structures on you premises not permanently attached
to your dwelling such as a detached garage, dog
house, perimeter fence, storage building, etc.
Coverage C - Personal property - covers your
personal property, (e.g. furniture, CDs, stereo and
clothes). You choose a dollar amount limit (what you
think your possessions are worth) when you purchase
a Texas homeowners insurance policy.
Coverage D - Loss of use - covers the additional living expenses you
incur when your home can't be used due to an insured loss. This is
usually a percentage of the dwelling limit.
Coverage E - Personal Liability - covers your personal liability claims
and suits for bodily injury or property damage you are libel for due to
unintentional acts committed by you or qualified family members and
your pets (if not excluded). You choose this limit when you purchase
the Texas homeowners insurance policy.

Coverage F - Medical payments - covers medical expenses for
minor injuries to others even if you were not at fault if they incur injuries
on your property. The policy normally includes limits of up to $5,000
per person.
Home Replacement Cost Estimate Explained
Proper insurance to value is one of the most important considerations in insuring
property. In an effort to assure your home is insured properly we review the
estimated replacement cost of your home on an annual basis. The program we
use to calculate the estimated replacement cost is the Marshall & Swift/Boeckh®
Dwelling Replacement Cost Estimation Program. Marshall & Swift/Boeckh® is a
nationally recognized expert on replacement cost estimates for homes and
commercial buildings.
The program calculates the minimum estimated replacement cost based on:
* Local Labor* Local Material Costs
* Square Footage of Dwelling* Construction Type
* Heating & AC Systems* Additional Features/Enhancements
* Potential Debris Removal* Foundation Excavation & Replacement
* Architect Fees* Structural Engineering Fees
To rebuild a substantially damaged home is much more expensive than to build
new because debris must be removed before repairs can be made. Where as
in new construction there is no debris removal to consider. The cost to remove
debris is considered in the estimated replacement cost estimate because it is
covered under the dwelling limit on your homeowner's insurance policy.
Comparing estimated replacement cost to current local new construction costs
is not a good comparison either because new homebuilders typically are building
many homes at once, which allow economies of scale. They purchase large
quantities of materials giving them discounts and share labor on several homes,
which allow for lower labor costs per home.
Many compare the value of their home to the current market value, or what you
could sell your home for in the current real estate market. This is not an
accurate comparison because if your home is substantially damaged the
repairs will be made at current labor rates and materials costs including debris
removal. Market value is what you can purchase a used home at in the current
real estate market, which is not an indicator of cost of neither new construction
nor reconstruction.
The program does not consider the value of your land. It is considering your
dwelling only. Our agency utilizes data on your home, which we retrieve from the
county's tax appraisal database. This information provides us with your homes
square footage, type and materials of construction and features. If there are
errors in this information we will be happy to make adjustments where
necessary. If your home is new we will acquire this specific data from your or
your appraisal.
We advise you to insure to at least the minimum estimated replacement cost.
You should even consider insuring above the minimum. If your home were
substantially damaged wouldn't you like to rebuild it back to the size and quality
it was? After all your home is probably the largest investment you will make.
Over the years we have had a few clients suffer major losses whereby their
home and contents were substantially destroyed. They were happy we had
advised then through the years about insuring to proper values and were able to
recover from their losses without financial hardship.
What is my home worth? Market value versus reconstruction costs
Many homeowners equate the "worth" of a home to its market value, especially if
the home was a recent purchase. While market value is a valid calculation of a
home's worth for buying and selling, it has little to do with the cost of rebuilding. The
estimate you are providing is the amount to reconstruct the home at today's costs.
Why is reconstruction cost more expensive than new construction?
Rebuilding a home includes many factors and expenses not considered in new
construction.
Economies of scale:
It costs more for a contractor to build one home at a time because materials are not
purchased in bulk. A single household item that matches the one that's been
destroyed will nearly always cost more than if it had been part of a larger purchase.
Top-down versus bottom-up:
Repair work for a partially destroyed home is done from the top of the home down.
This is more time consuming and labor-intensive.
Demolition and debris removal:
This step is necessary before reconstruction can begin and adds to the total cost.
Use of labor:
When a builder constructs many homes at once, they can efficiently schedule labor
for carpenters, plumbers, electricians and other workers. For a single rebuild, labor
is not as efficient and contributes to higher costs.
Access to worksite:
Worksite access is easier for brand new construction. For reconstruction,
obstacles such as neighboring homes, trees, lawns, fences and other landscaping
prevent easy site access. This makes it difficult to transport materials and can drive
up labor costs.
Building code changes:
Changes to building codes may require costly updating, even for undamaged parts
of a home. This could include updating wiring or other utilities and is costly,
especially for older homes.
Natural disasters:
After a natural disaster, the costs of building materials and labor rise because of
increased demand. Over the past 20 years, there has been a significant increase
in the frequency and severity of weather events, resulting in a high number of
losses that require repairs.
Protecting undamaged parts of the home and contents:
Keeping a partially destroyed home from further damage until permanent repairs
can be made adds to the overall cost. This could involve covering a damaged roof
or holes in walls.
Specialized labor is more costly:
Reconstruction is often completed by contractors who specialize in rebuilding as
opposed to new construction contractors. Their specialized labor tends to be more
expensive.
Replicating old construction methods and materials:
A standard homeowners policy provides for replacement with like kind and quality,
which means replicating a home as it stands today. In older homes, interior walls
are often made of plaster instead of drywall and exterior brick walls are made of
solid brick instead of modern brick veneer. Homes constructed prior to 1940 were
built with full dimensional lumber, which is larger and more costly than typical
modern lumber. Because of features and materials such as these, older homes,
especially those built prior to 1940, cost more to replace. In addition, the rising cost
of commodities contributes to higher reconstruction costs. For example, petroleum
based materials such as shingles have increased in cost dramatically.