• Get your FREE PDF instantly – Essential tips for homeowners!

    Download Now
  • We’re here to help you discover all your options and make decisions with confidence.

Schedule A Consultation
(713) 461-6500
(713) 461-6500
blog
November 8, 2022
Jason McLaurin

6 Things to Know When Buying Homeowners Insurance

Schedule A Consultation
Read Full Post

Most homeowners have little choice about whether or not they should buy homeowners insurance. It’s typically a requirement of mortgage lenders, who are zealous to safeguard their investments. Even for homeowners who own their property outright and aren’t obligated to insure it, it’s prudent to obtain coverage that can mitigate the risk of property loss, whether due to fire, burglary, or natural disaster.

Where homeowners do have some autonomy is in the specific insurance carrier they choose. As you consider your homeowners insurance needs, here are some points that may need clarifying.

What to Consider When Choosing Homeowners Insurance

  1. You’ll need to decide how much coverage to buy. Generally speaking, the more coverage you purchase, the less you’ll have to pay out of your own pocket should your property become damaged in some way. Of course, buying more coverage also means you’ll pay a larger amount on your monthly premiums. Always check with your lender, who may require you to pay for a minimum amount of coverage.
  2. Think about deductibles, too. The deductible is the amount of money you’ll have to pay out of your pocket before the insurance policy kicks in. Always make sure you compare deductibles and choose the one you’re comfortable with. Again, a lower deductible will typically cost you more in terms of your monthly payments.
  3. Weigh replacement cost vs. cash value. You may also have an option to insure your home for replacement cost vs. cash value. Replacement cost refers to how much it would cost to either replace or repair damaged property, with materials of similar quality, without factoring in depreciation. Generally speaking, you’ll want to insure your home for at least 80 percent of its replacement value. Cash value, meanwhile, refers to the amount of money it would take to replace/repair property after you deduct depreciation.
  4. It pays to shop around. Your lender may recommend an insurance carrier, but you are not obligated to use that carrier. Review several policies from different companies, comparing both monthly payment amounts and deductibles.
  5. Your insurance agent can often give you a discount. There are a number of possibilities for getting your rate lowered—for instance, insuring your home and your vehicle through the same carrier; installing a security system; or getting the roof replaced. It never hurts to ask your agent about some of these options.
  6. Know your policy. A lot of homeowners have a “set it and forget it” mindset when it comes to homeowners insurance. It’s wise to actually take the time to review your policy and develop a clearer understanding of what is and isn’t covered. That way, should you sustain any property damage, there won’t be any confusion about your coverage and the level of protection it affords you.

Questions About Coverage?

It’s well worth taking the time to ensure the correct coverage for your home. Doing so can save you money now, and hassle down the road. McLaurin Law is happy to advise on homeowners insurance needs, and we invite you to contact us at your convenience.

Do you have the right level of #homeowners #insurance? Here are some key considerations.

Copyright © 2023. McLaurin Law, PLLC. All Rights Reserved.
The information in this blog post (“post”) is provided for general informational purposes only and may not reflect the current law in your jurisdiction. No information in this post should be construed as legal advice from the individual author or the law firm, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting based on any information included in or accessible through this post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country, or other appropriate licensing jurisdiction.
McLaurin Law, PLLC

4544 Post Oak Place Dr
Suite 350 Houston, TX 77027

(713) 461-6500http://mdlawtex.wpenginepowered.com/

Related Services

Hours of Operation

Office Hours: 8:30 AM - 5:00 PM

Available by Phone: 24/7

Whether you are recovering from a personal injury or attempting to recover compensation with an insurance coverage claim or appeal, our legal team will vigorously advocate on your behalf.
Personal Injury and Insurance Law Attorneys in Houston, TX
© Copyrights 2024. McLaurin Law PLLC. All Rights Reserved.
The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. Contacting us does not create an attorney-client relationship