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Blog / FAQ's
Bee Cave Insurance Agency - Better Coverage, Service & Rates!
 Proudly Serving Bee Cave, Lakeway, Dripping Spring, and Austin areas

Hard Insurance Market 2023

A hard insurance market happens when claims and operating costs exceed the amount of premiums taken in by insurance companies, and there is uncertainty of future loss levels. I have not seen this type of market since the early 2000’s when mold claims dominated the insurance industry.
Our hard market is due to a range of factors – an increase in frequency & severity of claims, increase in jury awards, stock market performance, inflation, fraud, availability & affordability of reinsurance, and climate change to name a few.
In a hard market premiums increase, underwriting becomes more selective, companies suspend writing new policies, and the overall capacity to offer insurance policies decreases. In extreme hard markets insurance companies can stop writing new policies, non-renew existing policies and leave the state like in Florida, California, and Louisiana.   

Hard Insurance Market

Do I need a Personal Umbrella Insurance Policy?

If you're ever sued, your auto or homeowners policy may provide you with enough liability coverage to pay for judgments against you, up to your policy limit. However, in our litigious society you may want to have an extra layer of liability protection. A severe accident could easily exhaust your underlying liability limits leaving you responsible for the balance. An umbrella policy kicks in when a judgment exceeds the underlying liability coverage on your auto or property policies.   

Umbrella Insurance

How to stop sewer from backing up into my home?

On occasion, a city sewer line or septic system may become blocked, causing wastewater to back up into your home with very unpleasant results. Install a wastewater relief valve in your PVC clean-out riser, normally located outside your home near the slab. This easy fix will help discharge the backup outside, rather than inside your home.

Sewer Backup

Is lost jewelry covered by my homeowners insurance?

Most homeowner policies do not cover accidental jewelry loss unless the item is scheduled. Scheduled Personal Property insurance provides broader protection for items like jewelry and fine arts up to the insured & appraised amount. Scheduled jewelry can also provide higher limits for theft.   

Scheduled Jewelry

When should my kids get their own car insurance?

Once your kids no longer reside in your household, they need their own auto insurance policy. This does not apply if they're under age 25, temporarily away at college, and consider your address as their permanent address. While your kids are on your auto policy, you are responsible for any accidents they're involved in. When it's time, transfer the vehicle title into their name and have them purchase their own auto policy. This will also cut the liability trial back to you.

Young Drivers

What are the most common home insurance claims?

After wind & hail, the most frequent claim is water damage, and most are preventable. Add these to you to do list: 1) Replace washing machine hoses every 5 years with steel braided hoses. 2) Draining your water heater tank annually removes sediments that cause rust & will prolong it's life. 3) Replace water supply lines to toilets, sinks, and ice maker. 4) Install a waste water relief valve in your waste water clean out. This will discharge sewer backup outside, rather than inside your home.

Water Leaks

How do I fix a chip in my windshield?

Most windshield dings can be repaired if addressed quickly, and repairs are free with your comprehensive coverage. Once the damage spreads, windshield replacement is subject to your deductible.

Windshield Repair

Is life insurance coverage from work enough?

Consider life insurance at work a supplement, and not your main protection. A medical condition that forces you to leave your job could mean the end of your coverage when your family needs it the most. The cost of group plans usually goes up every year as you age, but you can lock in your rate with your own plan for a longer period of time.

Life Insurance

Do I need to update my home insurance when remodeling?

Yes. Adding a room or upgrading your kitchen & bathrooms increases the value of your home, and could leave you short in a claim if we don’t upgrade your insurance protection also. We would need to increase the dwelling limit on your homeowners policy.


What does homeowners insurance cover?

Homeowners insurance is a packaged policy that provides coverage for your home, other structures on your property, personal property, loss of use, personal liability, and guest medical. Give us a call for a comprehensive assessment of your needs, and to make sure you receive every possible discount. 

Home Insurance

How does my credit affect my insurance cost?

Most insurance companies use an insurance score “IS” that’s derived from your credit data as a factor in determining your premium. To improve your IS start by calling 877-322-8228 for a copy of your free annual credit report from all three credit bureaus. Obviously you will want to work on any derogatory items with your credit, but how do you improve a good IS? Cancel all inactive credit accounts listed on your credit report, and try to consolidate your active credit cards to two. It seems that two is a preferred number of credit cards for some insurance companies. 

Rising Insurance Costs

Got Tenants?

We recommend that you require your tenants to purchase renters insurance to cover their stuff, and personal liability issues. Also, make sure they name you as an Interested Party on their renters policy, so that you will be notified if they cancel the policy.

FYI – many insurance companies do not insure properties with aggressive dog breeds.  

Renters Insurance

What does auto insurance cover?

Auto insurance covers your liability in case of an accident, uninsured & under-insured motorist, personal injury, physical damage to your vehicle, loss of use, and roadside assistance. Give us a call for a comprehensive assessment of your needs, and to make sure you receive every possible discount. 

Auto Insurance

What’s the difference between Texas homeowner policies –            HO2 (good), HO3 (better), and HO5 (best)?

The fundamental difference is open peril coverage vs. named peril coverage. Open peril policies cover any sudden & accidental damage unless specifically excluded. Named peril policies cover only specific perils listed in the policy like wind, hail, and fire. The HO2 policy provides named peril coverage for your home & personal property. The better HO3 policy provides open peril coverage for your home, and named peril coverage for personal property. The best HO5 policy provides open peril coverage for both your home & personal property and is the most comprehensive policy.

Homeowners Insurance Policy

What’s the difference between Market Value & Replacement Cost?

Market value is the estimated price that your home would sell for on the open market. Replacement cost is the estimated cost to reconstruct your home based on current labor & material costs, and the cost of debris removal of the old home after a loss. Market value and replacement cost are two different concepts, and are usually two different numbers. Replacement cost calculators are used by your insurance agent to estimate the replacement cost of your home.

Home Replacement Cost Estimate
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