What to Look for in a Homeowners' Insurance Policy

If you’re shopping for the right Houston home insurance policy, the first thing you need to know is that, in the world of insurance, there’s no such thing as one size fits all. Every insurance policy is different, so it’s crucial to find a policy that’s tailored to your individual needs. The best way to find your perfect policy is to ask plenty of questions before you sign a contract.

Find Out What’s Covered

A standard homeowners' policy typically doesn’t cover flood damage, so if you live in a hurricane-prone coastal area, you may want to invest in flood insurance. A standard homeowners' policy also doesn’t include damage due to “earth movement” disasters such as earthquakes or sinkholes — although a handful of states have now made sinkhole coverage mandatory.

If you have any specific concerns about certain contingencies that may not be covered, ask your agent how you can get the coverage you’re looking for.

Reimbursement: Do You Want Cash Back?

Although many insurers offer cash reimbursements, some companies prefer to replace the lost items instead, even if the timing isn’t convenient. For example, if you’ve had a house fire and you and your family are temporarily living in a small apartment, you won’t want to take delivery on a new 60-inch television. Be sure to find out if your policy replaces the cost of the item, or the item itself.

Replacement Value

If you expect to receive full value for your lost or damaged items, then you may be in for a surprise when you find that you’re only compensated for their as-is value in their used condition.

Two terms to remember are Actual Value Coverage (AVC) and Replacement Value Coverage (RVC). The most desirable of these is RVC, which gives you approximately the entire replacement value of your items in new condition. An RVC policy usually costs 25 percent more, but if you want to receive full replacement reimbursement, you’ll find it’s worth it.

An AVC policy will give you the current depreciated cost of the items. For example, you may get only $300 back to replace a laptop that you paid $800 for three years ago.

If you own luxury items such as jewelry, furs and expensive musical equipment, you may need to get a floater policy to provide extra coverage beyond your policy’s limitations.

Liability Insurance: How Much is Enough?

A standard homeowners' insurance policy offers liability coverage worth at least $100,000. If you prefer more, then talk with your agent about purchasing an umbrella policy offering more liability protection.
For more information about finding a homeowners insurance policy that’s right for you, give Reliable Insurance Managers a call at 713-227-7283. and we’ll be glad to answer all your questions.

4 Ways to Make Claims Easier

No one wants to be in a position that necessitates an insurance claim. Not only is it frustrating to deal with the loss of your property after an insurable incident, but filing an insurance claim can also be a daunting task if you aren't prepared. By following these four tips you can make your insurance claims process much easier.

1.     Take pictures. By having before pictures of the assets you have covered by insurance you clearly communicate the condition of the items you owned which allows the insurance company an easier time interpreting their value. But it's also important to have pictures taken of the damage as well. By showing the amount of damage done you can help the claims adjuster determine if you suffered a total loss and in some circumstances, such as after an auto accident, your pictures can illustrate fault.

2.     Know what you lost. It's important to have a pre-incident inventory of your home, RV, office and vehicle so that, in the event you suffer an insurable incident and must make a claim, you know exactly what you lost. Without an inventory you may find that you forget to list certain items and your claim is insufficient to replace them.

3.     Call early. In the event that the insurable incident had a widespread effect on homes in your area make sure that you call your Houston home insurance company as soon as possible. Claims processing may be sorted based on severity, but within your level of severity it will likely be first come, first serve. Even after an individual incident such as a house fire, calling early is important to ensure timely payment.

4.     Have your documents together. Keep your insurance policy, property receipts, pictures, inventory, and all other relevant documents together. Make sure that the insurance company’s phone number and your insurance agent’s phone number are with your other documents. 

Having an experienced insurance agency at your service is one of the most useful tools to have both before and after your claim is paid. We can help you design an insurance portfolio that fully protects your assets and your family and we can help you fine-tune your claims process. Give us a call at 713-227-7283 and schedule your appointment today.

The Role of the Insurance Adjuster

Insurance has a fairly simple purpose: help make policy holders financially whole, up to the limits of the policy, after losses experienced during an insurable event.

While the goal of insurance is simple, its execution doesn’t always follow the same clean lines. After all, to control insurance costs you have a limit on your policy that spells out the maximum benefit you can receive. You will also have deductibles which are out-of-pocket requirements that you must meet, and finally, there is a process of examination that can follow a claim in order to ensure that everything works accurately and appropriately based on the loss you suffer.

When you submit a claim to an insurance company, your insurer owes it to all of their clients to investigate each claim. They do this for several reasons. First, they want to verify the incidents behind the loss. This helps ensure that the incident was insurable under the policy contract. Next, they want to determine the extent of the damages. This assures your carrier that they’ve awarded you the amount you deserve in order to be made whole after a qualifying insurable incident.

An insurance claims adjuster is the individual who works in the role of investigator. He or she may interview witnesses, review records, and even come out to the location of the incident to explore the damages. This can be an especially helpful exercise as the adjuster may meet with you, at the incidents location, to go over details. This may prompt you to remember items you otherwise would have forgotten...

Contact us at (713) 227-7283 to learn more about Houston auto insurance as well as home, business and car insurance in Houston, Katy and surrounding areas in Texas, or continue reading "The Role of the Insurance Adjuster"