New to Texas - Affordable Homeowners Insurance (Part 2)

As important as it may be to obtain adequate coverage for ones home and personal property, it is equally important for most people to find a policy they can afford.  For this reason, those new to Texas, who are looking to buy homeowners insurance for their new purchase, would do well to research the various factors that come into play when insurance companies calculate your premium.  It is also a good idea to learn about the types of discounts that may apply to homeowners in the state of Texas.  Finally, there are a few basic guidelines one should follow when shopping for homeowners insurance in the state of Texas, which will make the odds of finding a good, affordable policy all the more likely.

• Factors Affecting Texas Homeowner Premiums
• Discounts available Texas home owners
• Shopping for homeowners insurance in Texas

Discounts available to Texas Home Owners 

Discounts can help you save money on your insurance. Companies may offer premium discounts if you take steps to reduce the chances of a loss. Each company sets the amount of the discounts if offers to its policyholders. Some of the more common discounts are listed below:

• Impact-resistant roofs
• Noncombustible roof
• Age of house (companies set own standards)
• Premises in good condition (companies set own standards)
• Good claims experience for three consecutive years
• Other policies with same company or group
• House insured to full replacement cost
• Senior citizens discount
• Burglar, fire, and smoke alarm systems
• Automatic sprinkler systems
• Fire extinguishers
• Home security devices

Shopping for Homeowners Insurance

Rates vary widely among companies, so it pays to shop around. Following are some useful tips to help you find the best deal for your money:

• Decide before shopping the specific coverages and coverage amounts you need.
• Choose the highest deductible you can afford. Your deductible is the amount you must pay yourself before the insurance company will pay. Higher deductibles will lower your premium, but remember that you´ll have to pay more out of your own pocket if you have a claim.
• Because rates vary, ask several companies and agents for price quotes. When comparing rates, make sure they are for the same coverages. TDI publishes a homeowners rate guide that can help you shop. The rate guide lists companies and their annual premiums for policies with $100,000 coverage on the house, $40,000 on its contents, and a 1 percent ($1,000) deductible.
• When getting a price quote or applying for insurance, answer questions truthfully. Wrong information could cause you to get an incorrect price quote or could lead to a denial or cancellation of coverage.
• Consider factors other than price, including a company´s financial rating and its complaint index. Financial ratings indicate a company´s financial strength and stability, while the complaint index indicates a company´s customer service record. Buy only from licensed companies and agents. You can find out whether a company or agent is licensed and learn a company´s financial rating from an independent rating organization and its complaint index calling TDI´s Consumer Help Line or by visiting the TDI website

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