I received a call from a mortgage loan officer in Dallas a few weeks ago. She was working with a couple who was buying a duplex but had not yet obtained insurance. The loan officer wondered if we could help the couple as the purchase was scheduled to close in a couple of days.
Early in my insurance career, I was attending a larger party with a number of friends when a woman came up to me with tears in her eyes. Her husband, who was coming in their other car, had been involved in an accident not far from where we were gathered and she did not know what to do. We left the party together in her car and I drove us to where the accident had occurred, a southbound service road of North Central Expressway in Dallas.
Last week, I outlined the difference between the two broad types of home insurance policies; replacement cost and actual cash value (see http://bit.ly/1qLPE5W). This week, I want to build on that post and outline what goes into determining a home’s replacement cost value.
If you think Texas car insurance rates are on the rise, it’s not your imagination. Based on a report released earlier this year by the National Association of Insurance Commissioners, Texas premiums now rank 11th highest in the nation. Two years ago, we were ranked 14th highest in the nation. The average Texas car insurance premium, based on the 2009 data used for the NAIC report (the most recent nationwide data available), is now $1,022 a year. The national annual average rate is $901.
Broadly speaking, there are two types of home insurance policies; actual cash value and replacement cost. There are multiple forms with various options and coverage, but they all fit into one of these two “buckets.”
A client called me last week with a question about how to handle something. Her teen had been in a little accident with an adult, and it was the adult’s fault. The good news is the teen was unhurt and the damage to her car was minimal; the bumpers simply rubbed together. According to the body shop the client visited, they could either remove, sand, and repaint the bumper or replace it. The difference in cost was minimal.
Most people usually don’t think about their roof unless there’s been a recent hail storm or a damp spot appears on a room ceiling. As long as it’s not leaking, we tend to ignore it even when we see it pulling into the driveway. This past week roofs have been the subject of three conversations, two were with clients and the other with a Dallas realtor on behalf of a client with an offer on a home.
Yahoo posted an interesting article on June 2nd listing 25 Ways to Make Money Renting Your Home, Car, Kitchen and More to Total Strangers. I am always fascinated to see how people make money. In this digital age, it’s possible for anyone to participate in the sharing economy and make a little extra money too. The one thing that’s missing from this article and other blog posts I’ve seen are the insurance implications for the owner of the home or vehicle, and there are some.
There have been some interesting articles in the news related to cars over the past few months. When taken individually they do not appear to be significant, yet when combined together, they paint an interesting picture for many Americans. The pieces of this puzzle involve rising new car prices, the growing length of car loan terms, and vehicle depreciation.
People who live in the counties along the Texas coast usually have a policy that’s unfamiliar to most homeowners in north Texas. In addition to home insurance, most homeowners in the coastal counties of Texas will also have a separate wind insurance policy. This policy specifically addresses damage to a home caused by high winds normally associated with a hurricane.
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