Home Insurance Quotes
Bee Cave Insurance Agency
Shopping for homeowners insurance? Be careful, homeowner policies are Not the same and not understanding the differences could cost you thousands of dollars at claim time. Three primary things to watch for to help you avoid Gotchas! These include home policy type (HO-2, HO-3, HO-5), roof settlement type if your roof is damaged from wind or hail (RCV or ACV), and cosmetic hail damage exclusions. The items in the illustration below in red text are some of the Gotchas.
Many people only look at the coverage limits and the annual premium when choosing a policy to protect one of their largest assets. Does it make sense that the cheapest policy will provide the best coverage when something unexpected happens? Give us a call, we'll provide an evaluation of your insurance needs and better options to protect your family & home.
Illustration - Home Insurance Quote
If The Policy Limits Below Are The Same, Why Are The Premiums So Different?
While shopping for home insurance pay attention to policy type, endorsements,
exclusions, insurance company credit rating, and complaints to Avoid Gotchas!
IHome Policy Limits & Policy Types HO-2 Policy HO-3 Policy HO-5 Policy.
Dwelling Limit 750,000 750,000 750,000
Other Structures 75,000 75,000 75,000
Personal Property/Contents 375,000 375,000 375,000
Personal Liability 500,000 500,000 500,000
Covered Perils - Named Perils or Open Perils Named Open Perils Open Perils
Perils Dwelling Dwelling & Contents
Wind/Hail Roof Damage Settlement: Payment RCV to 2035 Replacement
Replacement Cost (RCV) or Payment Schedule (ACV) Schedule Cost
Cosmetic Hail Damage Coverage - Metal Roofs Not Covered Not Covered Covered
Annual Premium $3,592 $4,580 $5,290
Home Insurance Policy Types: HO-2, HO-3, HO-5
The HO2 policy (most basic) is a “named peril” policy that covers your home and personal property for about 15 named perils. The HO3 policy provides better “open peril” coverage for your home and named peril coverage for your personal property. The HO5 policy is the most comprehensive policy providing open peril coverage for both your home and personal property. Open peril policies provide coverage for any sudden & accidental loss unless specifically excluded in the policy vs. the specific 15 "named perils" because there are more than 15 things that can damage your home. Call today, we're here to help you navigate home policy differences, limits, and options.
Types of Roof Coverage
Wind & Hail damage to your roof can be paid based on a Replacement Cost Value (RCV) basis, or Payment Schedule / Actual Cash Value (ACV) basis. RCV policies pay the total cost to replace your roof minus your deductible. Payment schedule or ACV policies pay the total amount to replace your roof, minus depreciation (based on the age of your roof), and then minus your deductible. Some policies provide RCV coverage for a number of years and then the insurance company changes the policy to ACV coverage - usually after your roof is 10 to 15 years old.
Example: roof replacement cost is $40k, depreciation is $20k, and deductible is $10k. With RCV coverage you would pay $10k for your new roof. With ACV coverage you would pay $30k for your new roof. Some policies include a cosmetic hail damage exclusion - no coverage if the hail damage to your roof is only cosmetic. A dinged up roof could cost you at resale and could make your home uninsurable if you decide to switch to a different insurance company.
Home Insurance Discounts
Home insurance policy discounts include: age of home, multi-policy, gated community, claim free, newer roof, hail resistant roof, monitored alarm system, and fire sprinkler system.
Frequently Asked Questions
Which home insurance policy is best? The best home insurance policies in Texas are the HO-3 & HO-5 policies that include "open peril" coverage. Give us a call, we'll help you choose the best policy options to protect your family and home.
Open Peril coverage vs. Named Peril coverage? Open peril coverage is more comprehensive and covers your property for any sudden & accident loss unless specifically excluded in the policy. Named peril coverage is more basic and covers your property for about 16 named perils. Unfortunately, there are many more than 16 things that can damage your home. The HO5 policy (best) provides open peril coverage for your home & personal property, the HO3 policy (better) provides open peril coverage for your home and named peril coverage for your personal property, and the HO2 policy (good) provides named peril coverage for your home & personal property.
How much home insurance do I need? Insurance companies use replacement cost estimators to estimate the replacement cost value of your home. This includes characteristics of your home like size, construction type, interior quality and more. Make sure the dwelling limit on your homeowners policy is up to date, as it's estimated that over 60% of homeowners are underinsured. We review your policies every year, and will help you keep an eye on the big picture.
How much home insurance costs? The cost is different for every home, but the main rating factors are location, age of home, exterior construction type, roof type & age, insurance score, and distance to responding fire department. We have many options to choose from in order to find the best fit to protect your family and home.
Are you near me? Yes, we're located West of Austin, Texas in the Bee Cave & Lakeway areas. Local zip codes include: 78738, 78734, 78733, 78735, 78746, 78620, 78669.
Why home insurance rates increase? This is usually because of three items. First, most insurance companies increase the amount your home is insured for each year to keep up with inflation. Second, some of the discounts on homeowner policies decrease each year - age of home, and age of roof. Third, home insurance rates can increase based on increased frequency & severity of claims. In Texas, we're experiencing more catastrophic storms, and the cost to repair homes based on building materials & labor is going up. We'll help you find a good balance between quality coverage for one of your biggest assets and cost.
Where to buy home insurance? Online shopping is becoming more prevalent, but attempting to navigate insurance policies & coverage limits without a licensed professional could cost you thousands at claim time. We have found that many people using online insurance companies end up with inadequate coverage and higher rates. Give us a call, we make finding the right coverage easy and painless.