I love discounts! If those discounts are on something I want, that’s wonderful! If they are on something I have to have, such as home insurance, that’s even better! Why pay more if you don’t have to?! Let’s take a look at discounts organized by category to help guide us.
I spoke to a group of realtors last week. It was the monthly meeting for the JB Real Estate Group (www.jbrealestategroup.com), and the topic I presented was, How To Keep Home Insurance from Derailing the Closing. We had a great discussion and I thought it would be beneficial to share what I presented here. I believe this information is helpful whether you are a home buyer, seller, realtor (listing or buying agent), or even a mortgage loan officer.
Insurance Journal published an interesting article based on the results of a survey undertaken by Trusted Choice and the Big I earlier this month. The results were very interesting and point out that most Americans are ill prepared financially for a major disaster, think their home policy will cover them in the event of a disaster, and may not have enough home insurance coverage to replace their home should they encounter such a disaster. With us being at the height of hurricane and wildfire seasons, let’s examine the survey’s findings.
A client called me two weeks ago. Their air conditioner died and they wanted to know whether or not it was covered by their home insurance policy. Given the cost of replacing an air conditioning system, I would ask the question too. The answer though, is it just depends on how they answer my next question.
Every once in a while, I’m asked by a mortgage loan officer or processor if the home insurance policy a client has selected includes guaranteed replacement cost coverage. In most instances, the answer is no, however, there are a few carriers that still offer this. I thought we’d take a look at that as we conclude this series on home insurance coverage and forms.
I was talking with a person the other week about home insurance. They asked whether the policy I had proposed was a named peril or all risk, or open peril, policy. It’s an excellent question and one we should delve into to expand on last week’s post, The Three Home Insurance Form Types (see https://wiseinsurancegroup.com/three-home-insurance-form-types/).
Insurance companies write home policies based on industry standard forms or policy types as outlined by the Insurance Standards Office. These standard forms are used to define how policies will be written and what coverage is included. There are 6 home insurance policy types including home, renters, and condo policies. This post, however, will focus on the 3 most common ones written in Texas
I’ve had a number of conversations with people about home insurance over the last few of weeks. Based on those conversations and the questions I’ve addressed, I wanted to write a series on the different types of home insurance policies to provide a foundation for home buyers and owners to reference.
A client called me a few weeks ago. We’ve written several insurance policies on some rental properties he and his wife own. They are all traditional single family homes in the Dallas / Fort Worth area. The conversation was interesting because they are looking at selling several of their properties and replacing them with mobile homes. I thought it would be interesting to write about mobile home insurance and how it’s similar yet different from a home insurance policy on a traditional home.
In order to answer my question whether home insurance would cover a home on Airbnb or VRBO, I talked with underwriters from each of the companies I represent. Each underwriter gave me the same answer, that their home insurance policy would not cover a loss if the homeowner is providing temporary lodging via any of these services. The reason is there is too much risk exposure for the home insurance company for any type of loss.
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