Is Your Home Fully Protected? How to Make Sure You Have Enough Homeowners Insurance

It’s not a matter of if something will happen, but a matter of when and what, especially in the Houston area. From hurricanes, to freezes, to endless rain, being prepared is key.

Part of that preparation is making sure you have the right coverage, from the right company, and at the best possible price. If you’re moving to Texas from out of state, homeowner’s insurance can cause sticker shock, so it’s essential to start that research sooner than later.

Homeowner’s insurance is a collection of a variety of coverage, including fire, theft, liability, and windstorm all collected into one policy.

Whether you’re a current homeowner who may need to upgrade your coverage, or a potential new buyer purchasing home insurance for the first time, these steps can help make sure you have the right coverage for you and your home.

How Do You Determine Coverage?

Coverage should be based on the square footage of your home, but it will also factor in how much it would cost to fully rebuild the home in case of disaster. Costs to build in the Houston area are pretty reasonable right now, but be sure to discuss this with your insurance agent. Your insurance company will most likely require you to purchase coverage that covers at least 80% of the replacement value of your home. Cutting coverage amounts to save money can cost you in the long term if the worst happens. Be sure to also take into consideration everything in your home that would need to be replaced in the event of a disaster. You may also need to consider adding extra personal property coverage if you have lots of jewelry or art.

Do You Have Enough Coverage?

Find out current information about what your home is worth today, and how much it would cost to rebuild it. Make sure your deducible is set at a price that you can afford in the event that you must trend or do extensive repairs. For example, most policies have a 1% deductible on all perils, but 2% on windstorm claims. In Houston, that windstorm insurance is especially important.

What About Flood Insurance?

Being covered for water damage due to a leaky pipe isn’t the same as flood insurance. While that leaky pipe is covered by your homeowner’s policy, flooding due to conditions outside the home (hurricanes, storms, etc.) wouldn’t be covered. You’ll need a separate flood policy for that. A former FEMA administrator famously said that anywhere can flood, so you may consider getting a flood policy just in case. It’s relatively inexpensive, and can save you tens or hundreds of thousands of dollars if the worst happens.

What About Windstorm Insurance?

Depending on where your home is, you may need separate windstorm insurance to cover your home in case of a tropical storm or hurricane. This is in addition to coverage in your regular homeowner’s policy. In the Houston area, Brazoria County and all areas to the south will need windstorm insurance to cover hurricane damage. Be sure to check with your insurance agent if this is additional coverage you’ll need.

Do You Need to Upgrade?

For current homeowners, meet with your insurance agent to discuss your current coverage as well as any improvements you’ve made, including things like a new roof. Some policies will not cover roof damage if the roof is over 15 years old, so keep that in mind. Also discuss any additional items you may have purchased that should be taken into account. Your insurance company will come out and document these upgrades, take photos, and let you know if you need additional coverage.

Don’t take risks when it comes to protecting what is probably the biggest investment you will ever make.