Ins and Outs Of Homeowners Insurance – Part I

Congratulations!  After a long search, you have finally found “the” home, your offer has been accepted, and you’ve signed innumerable documents.  Now what?  Before you begin to actually move, you need to find a homeowners insurance policy that protects your large investment and meets all the needs of your Magnolia TX real estate.  At this point a wise purchaser will make another investment–one of time–to find the right policy in terms of cost, coverage, and service.

COST:

  • The amount of your insurance should cover the cost of replacing or rebuilding your Magnolia TX real estate. That amount is not the same as market value (or even what you paid) since you already own the land.  Most policies include coverage for up to 125% of replacement cost.
  • Personal property. Most policies cover personal property at 50% to 75% of the value of the home.  If your insurance pays actual cash value, you will not be reimbursed for the current value.  However, replacement cost is usually available as an endorsement to your personal property insurance.
  • Explore consumer guides, online sites, and agent interviews for price quotes.  Check here to ascertain financial stability of the companies you’re considering.
  • Don’t consider price alone.  Look for quality service and a solid track record.  Registered complaint information can be found at NAIC.com, or you can click here for your state’s insurance department website.
  • Discounts. Many companies will give you a discount if you insure both your car and your Magnolia TX real estate with them.  Ask about other discounts for adding preventative devices such as smoke detectors, deadbolts, security systems, storm shutters, roof reinforcement, and modernized plumbing, heating, and electrical systems, etc.  In addition, over-55 retirees often receive discounts.
  • Credit rating. Since insurers are increasingly using credit information to influence the price of policies, the higher your credit rating, the lower the cost.
  • Long -term customers sometimes qualify for discounts, generally 5% for a 3 to 5 year relationship and 10% for 6 years or more.
  • Deductibles. The higher the deductible, the lower the premium.  Insurers are currently recommending a $500 deductible, but if you raise that figure to $1000, you can save as much as 25%.  Your financial situation will be the deciding factor here.

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Whether you are new to the Magnolia Texas real estate market, thinking of moving up, or you’re an experienced investor, Pam Sitterly has the expertise, proven track record, and resources to help you buy Magnolia TX real estate for sale or market Magnolia TX homes for sale. Enthusiasm, knowledge of the area and personal concern for her client’s interests combine to make Pam an outstanding resource for your real estate transactions.

Pam works extensively to help Buyers and Sellers meet their Magnolia Texas real estate goals. For more information about buying or selling your Magnolia TX home, please call Pam at 281-723-0324 or via email with this convenient contact form.