When it comes to buying a house, picking the right home insurance is one of the essential items to keep in mind.
In Texas, most insurance policies cover the dwelling itself, personal property, and other structures not attached to the house. Plans typically also cover living expenses should you be forced to move, as well as personal liability to cover court costs and medical payments for anyone hurt on your property.
According to the experts at Robnett Integra Insurance Services in Brownwood, TX, there are generally two types of insurance plans available for homeowners in Texas, an all-risk policy and a named perils policy.
The all-risk policy, which is also called comprehensive or open perils coverage, is the broadest plan available. It generally covers all losses regardless of the cause, unless your plan happens to exclude a particular cause. The named perils policy, which is also called specified perils coverage, protects against loss resulting from causes stipulated in the plan. In addition to the policy, homeowners must choose whether they want a plan that includes “actual cash value” or one with “replacement cost” coverage.
A replacement cost plan picks up the full cost of rebuilding or repairing your home, based on current construction costs. This option, however, differs from market value and does not take into account the amount of the land. On the other hand, actual cash value covers the cost to rebuild or reconstruct your property at its current value. This option takes into account depreciation, which decreases the value based on the dwelling’s age and level of deterioration.
Homeowners insurance plans cover personal belongings including furniture, clothing, and electronics. But, plans may put limits on certain items, such as jewelry and art, but supplemental coverage options are available.
Call the team at Robnett Integra Insurance Services in Brownwood, TX to discuss which home insurance coverage option is best for your needs. Also, try our online rating tool for quotes on home and auto insurance.