If you’re like most people you’ve probably been spending significantly more time at home over the past several months.  If the crowds at home improvement stores are any indication, many are taking advantage of that extra time to perform maintenance and complete projects intended to protect our homes from inclement weather or other risks, increase their value, or allow for a more comfortable living environment.

That’s not too surprising- your home is likely to be your biggest asset, and represents your biggest expense.  You want to enjoy it, and protect it.  It is where we raise our families, and provides refuge from the outside world. While none of that is news, it might surprise you to know that more than 30% of homes are estimated to be uninsured or underinsured, and wouldn’t be adequately covered for damage resulting from a significant weather event, fire, or other loss.

Aren’t all home policies essentially the same?  The short answer is a definitive “No”!  So what factors would result in a home being underinsured?  Home policies that appear to be similar on paper can provide substantially different coverage in a claim, even if the insured values are identical.  The price on those policies can vary widely, and some agents do a poor job of informing customers about the differences, resulting in the selection of a policy based solely on price.  Price is important, but you should always make an educated decision when it comes to protecting your home.  A few of the factors to consider when evaluating your current policy include the insurance limit you select (insurance to value), what losses are covered (perils covered/excluded), and how those losses are valued (loss valuation). Here’s a breakdown:

1. Insurance to Value:  To be fully protected, you should be insured for at least 100% of your home’s replacement cost.  That isn’t the market value, or the appraised value- and can differ significantly from those numbers in many cases.  Those values matter for other purposes (resale value and taxable value, etc), but the goal of your insurance policy is to repair or replace your home if it is damaged or destroyed.  With that goal in mind, a home is properly covered when it is insured at a value sufficient to completely repair or re-construct it in today’s market, taking into account local and regional factors (labor cost and availability, material cost, etc).  Your insurance agent can help determine your estimated replacement cost using a variety of tools and a discussion with you about the characteristics of the home.  If your home was just constructed, you may have a good idea about the cost to rebuild already. It is important to remember those numbers can change quickly, especially when labor and materials are in high demand (i.e. a tornado or large wildfire that damages many homes in the area).  For that reason, we recommend insuring at 100%, and purchasing a policy that includes the benefit of extending your home’s coverage by at least 25%, often referred to as “extended replacement cost” or “extended dwelling coverage”, or a similar provision.  This may help to cover the "what if" scenarios that can make prices go up quickly, and are difficult to predict.
2. Perils Covered:  The types of losses covered and/or excluded on your policy can mean the difference between a payout of tens of thousands of dollars, or nothing, leaving you with the full burden of repairing your home.  The best home policies are often referred to as “all-risk” or “open peril” policies.  That type of policy provides the broadest level of coverage (for the structure normally, but may also be available for your personal property) , as it would typically cover any “accidental direct physical loss” that isn’t specifically excluded.  A “named peril” policy will cover only the loss types that are specifically listed as being covered, and excludes everything else by default.  This is common for personal property on many policies, and often the structure itself on budget oriented policies.   If the direct cause of loss isn’t 100% clear, or there is any doubt, the open peril/ all-risk coverage will likely provide more comprehensive coverage. It is important to understand what types of losses are specifically covered and excluded on your home policy to make sure you have the desired level of coverage.  Some loss types are almost always excluded by default:  Earthquakes, sinkhole collapse, mold, mold remediation, flood, water backup, continued or repeated seepage or leakage of water, foundation damage, and certain other exclusions.  Many companies will provide an option to purchase an endorsement to cover some of these risks, or you may be able to purchase a stand-alone policy if coverage is desired or required.  Unfortunately, policy quotes rarely list how perils are covered, making it even more important that you deal with an agent dedicated to making sure you are able to make an informed decision, and you aren’t just comparing policies based on their price.
3. Loss Valuation:  Losses can be valued using different methods from policy to policy, and even within the same policy!  To be adequately protected, you’ll probably want your policy to include “replacement cost” coverage for your home, and also for the contents of your home (your personal property).  You’re better off steering clear of loss valuations labeled “actual cash value”, “functional replacement cost”, “replacement cost- common construction”, or a similar valuation method.  These methods of valuation either provide a depreciated value (i.e. will pay to replace your 10 year old television with a 10 year old television), or a lower quality replacement valuation on your property (i.e. will pay the full cost for a new countertop, but not necessarily the same kind and quality that you have currently).  Many companies cover your personal property/home contents at actual cash value by default, but give you the option of adding replacement cost coverage.  Many companies will also cover your roof or other structures at “actual cash value” or depreciated value.  This is especially common with older roofs (over 15 years old), and “replacement cost” may not always be available in those circumstances.  It is important to understand how your loss will be valued in a claim, or you may end up bearing a larger percentage of the financial burden after a loss.

​If you purchased your home policy, and don’t recall discussing any of the above considerations with your agent at the time, you may benefit from a policy review or a quote to make sure you will get the value you expect from your home policy in the event of a claim.  We’d be happy to provide you with a free, no obligation review and quote of your policies to make sure your priorities are being met, and can shop the insurance market to find you the best policy for the money.  Give us a call at 830-992-3460, submit the form below, or stop by our website to request a quote and we'll get the process started!
 
 
 
 

In light of recent events, social distancing efforts, and closure of non-essential businesses, we are all doing our best to stay at home when possible, in the interest of public health.  The resulting side effect is significantly fewer miles driven as a society, and a corresponding reduction in auto insurance claims.  This has resulted in substantial savings for auto insurance companies across the board. 

Over the past week many of the biggest and best-known auto insurance companies have announced they will be passing the savings along to their customers; refunding a portion of the auto insurance premiums collected this spring; and providing much needed financial relief right when many need it most.   The timing, refund amounts or percentage, and refund method vary by company. Several companies will make a direct refund, while others will issue a return of premium through dividends or policy credits.  

Most personal auto policyholders can expect to receive between a 15% and 25% refund or credit of our auto insurance premiums if insured with one of the companies offering relief.

Companies that have announced refunds include: The Hartford; Liberty Mutual (& Safeco); Progressive; Nationwide; Allstate (& Encompass); Travelers; GEICO; Farmers; State Farm; and USAA.  This list isn’t all inclusive, and additional companies are likely to make similar announcements soon.  

Many companies are taking additional measures to help customers struggling financially- often by suspending cancellations or working with customers facing financial difficulties to guarantee coverage can remain in place.  If you are having a hard time making ends meet in these challenging times, we encourage you to reach out to your agent to see what your current insurance company may be doing to help. 

At Texas Insurance Advisers we are proud to represent most of the companies listed above, and many more.  If you don’t have an agent, can’t reach them due to office closures, or your company isn’t listed, we are happy to provide general information about the efforts many companies are taking to assist their customers.  Feel free to reach out to our office for more information. 

If you’re stuck at home, looking to save money, or both- this is also a great time to consider evaluating other insurance options.  As an independent insurance agency, we can shop auto, home, business, and life insurance on your behalf, compare coverage and price between companies, and provide you with a quote for a new policy that meets your needs.  Almost all of our new customers save money when they switch to our office- typically hundreds of dollars per year, but often more- often while increasing coverage! Savings depend on a number of factors and available discounts, but there is only one way to find out how much you could save! 

We can assist you remotely, so you won’t have to leave your house to keep more of your hard-earned money.  Give us a call at 830-992-3460, submit the form at the bottom of this post, or fill out the quote request form at www.texasinsuranceadvisers.com, and we’ll begin the process of shopping the insurance marketplace on your behalf. 

​Thanks, and stay healthy!

As recent public health concerns continue to evolve, and the economic impacts of social distancing recommendations, shelter in place orders, and mandatory business closures increase, businesses everywhere are adapting their operations to accommodate the changing needs and shopping habits of customers.

Those changes have resulted in a dramatic increase in delivery services being offered by businesses of all sizes.  Restaurants, grocery stores, and other merchants are working hard to keep their businesses operating, to accommodate varying levels of demand, and to better serve their customers by offering alternatives to traditional, in person shopping.   

This is great for consumers, and will have an immeasurable impact on public health, but it can have negative consequences for business owners, their employees, and independent contractors who haven't considered the potential impacts of these decisions on their insurance coverage.  

While coverage and exclusions differ between insurance carriers, we highly recommend local business owners contact their agent or insurance company to discuss any recent changes in operations that have added delivery service. This is especially important if your employees are making deliveries in their personal vehicles on your behalf.  Luckily, there are endorsements that can be added to many policies to enhance coverage and reduce risk.  At a minimum, you'll want to make sure your commercial liability coverage extends to your modified operations.

Employees and independent contractors that have taken on delivery work as a way to make extra money, or have been reassigned to duties involving use of their personal vehicles for business use should also consider contacting their personal insurance agent to verify coverage will not be negatively impacted.  Your insurance coverage could be reduced in a claim, with coverage for your liability or physical damage to your vehicle being excluded. 

While coverage provided and exclusions vary by policy and insurance carrier, it is best to avoid surprises by consulting with a professional prior to experiencing a claim.  If we can do anything to assist please feel free to reach out to us with your questions at 830-992-3460, via email at [email protected], or by visiting www.texasinsuranceadvisers.com.  We'll be happy to provide general guidance, or can build you a quote for your home, auto, or business to make sure the things that are most important to you are adequately protected.  We may also be able to find you a better value on your insurance, so you can put that savings to better use elsewhere.

Thanks, and be well!

Welcome to our new insurance agency blog!
 
This is our very first post. We're not quite sure what we're going to write about here, but the plan is to create helpful content for customers and prospective clients about information that is relevant to you.
 
We hope you'll come to view this as a top resource for keeping your family and your finances safe.
 
Here are a few of the topics we may be writing about:

• Answers to clients' frequently asked questions.
• Helpful information about insurance shopping.
• Safety and Health Tips and Ideas.
• Local Community Information.

 
Stay Tuned!