Homeowners Insurance
Homeowners Insurance Coverage
Homeowners insurance is an essential component of any homeowner's financial plan. Many lenders require proof of insurance prior to issuing a mortgage policy and treat lapsed homeowners insurance as mortgage default. But what are the right questions about homeowners insurance to ask when you are shopping for policies?
Questions to Ask About Homeowners Insurance
What Does Homeowners Insurance Cover?
Homeowners insurance typically includes dwelling coverage, personal property coverage, and personal liability coverage. Not all policies will include all of these coverages, and different policies will likely offer different limits and deductibles for each of these categories.
When you review a homeowner's insurance policy, make sure that the coverage offered for each of these parts of the policy fit your needs.
What Is Dwelling Insurance?
Dwelling insurance covers the physical structure of your home. Structural elements of a home such as the foundation, walls, and roof would be included under this part of the policy. This part of the policy would also specify covered losses such as fire or storm damage.
Flood insurance is typically not included in a home insurance policy, but can be purchased as a separate policy add-on. Ask your Guardify agent about potential flood insurance or earthquake insurance add-on policy options.
What Is Personal Property Damage?
Personal property damage covers personal property items (for example, furniture or technology items) that could be lost or destroyed in a covered loss incident. When reviewing the personal property damage coverage included in your policy, consider how the policy specifies replacement value of items for potential settlement purposes in the event of claims.
Actual Value vs. Replacement Cost
Most policies calculate settlement cost based on "actual value," which calculates current value of a lost item based on the item's original purchase price minus depreciation.
Other policies calculate the insurance settlement cost based on "replacement cost," which calculates a lost item's value relative to what the cost to replace the item would be according to current market prices.
If you prefer to select the "replacement cost" policy option, you may be able to purchase this as an add-on or policy upgrade to complement your homeowners policy.
What Is Personal Liability Coverage?
Personal liability coverage offers limited liability coverage for claims that result from an injury to someone (not someone who lives at your home) that occurs on your property. It can also cover certain claims as a result of damages that someone who is covered under your policy caused to someone else's property.
Personal liability coverage does not cover claims that could result from injuries that one covered member causes towards another covered member or intentional injuries.
Homeowners Insurance vs. Landlord Insurance
Homeowners insurance covers a dwelling or property, but it does not cover the professional activities, contracts, or potential damages of a non-homeowner resident that lives at a homesite per a landlord-tenant agreement. Landlord insurance can help to protect a landlord as far as commercial activities that relate to renting and leasing. Your Guardify agent can help you to develop a custom package for landlords that will cover both the property, as well as landlord company activities.
Homeowners Insurance vs. Renters Insurance
Homeowners insurance may cover a dwelling, property, and personal liability for a homeowner, but it does not cover these items on behalf of a tenant or renter. Renters insurance can help to cover the renter's personal property, and often includes personal liability for the renter. Renters insurance typically also includes some coverage for living expenses if a renter has to relocate suddenly due to a covered loss.
What Types of Property Are Covered in a Homeowners Policy?
A homeowners policy can be purchased for the following types of residences. Coastal homeowners and coastal property owners should purchase a separate coastal home or coastal property policy due to the unique environmental risks of coastal locations.
- Homes and standalone dwellings
- Condos
- Older homes
- Historical homes and 100-yr old homes
- Townhouses & townhomes
- Rental property
- Rural homes
Coastal properties are typically not covered under standard homeowners insurance due to the unique environmental risks of coastal living. Learn more about coastal home insurance.
Farm, Ranch & Ecotourism Insurance
If you own a farm or ranch, or if you utilize a portion of your property for ecotourism activities, it may be possible to obtain a specialized farm or ranch policy to complement your homeowners insurance. A Guardify agent can help you determine what aspects of your property and activities are covered under a commercial policy vs a personal policy, in order to make sure that you and your family are protected against claims.
Looking for ranch or farm insurance? Discuss farm and ranch property coverage add-ons with your Guardify agent.
Homeowners Insurance Quotes Texas
If you're looking for homeowners insurance in Texas, comparing policies from different companies can help you get the best coverage for the best price. Guardify agents compare homeowners insurance quotes from different insurance companies and carriers, so you get the right homeowners insurance policy for your needs.
Guardify can help you find homeowners insurance throughout Texas, including Houston, Corpus Christi, New Braunfels, San Antonio, Fort Worth, Dallas, Waco, El Paso, Lubbock, Amarillo, and Austin, for both metro and rural homeowners insurance needs.