 Summertime and the living is easy, right? Well, if you have kids, dogs, cats and an active lifestyle, accidents are sometimes hard to avoid in the summer. While having a first aid kit and a pitcher of ice-cold lemonade handy are probably a good idea, it's also a wise move to make sure your homeowner's insurance is up to date and still meeting your family's needs.
Homeowners insurance is basically designed to bring your home and possessions back to the same condition they were in before the loss occurred. That means you probably won't get to throw a spa in if you didn't already have one. There are also several different types of homeowners policies offered by a huge variety of insurance companies - and not all coverage is the same or available in all states. You should speak directly with your insurance agent about your specific coverage needs.
Coverage you don't want to be without: the basics
Imagine your house on moving day...empty, waiting to be filled. This empty space waiting to be turned into a home is usually referred to as Coverage A: your physical home (rooms, fireplaces, tile floors, carpeting, etc.) and any buildings attached to it, such as an attached garage.
The coverage you buy for your home should reflect the amount it would cost to completely repair or rebuild should you suffer a covered loss. This amount is determined by your home's purchase price plus inflation, but if you live in a hot neighborhood where resale values are skyrocketing, it's a good idea to factor that in, too. If it's been some time since you last updated your policy coverage or if you're not sure that your house has the basic coverage it needs, check with your insurance agent.
Coverage B usually refers to structures that don't necessarily exist on your property or are actually attached to your house. This type of coverage offers insurance protection for items like a detached garage, gazebo, or even storage shed.
Coverage C is usually used to protect your personal property, such as furniture, clothes and appliances. Most people don't think of such items when considering homeowners insurance, but you don't want to be without clothes for yourself and your family if a fire should burn down your house. This type of coverage has limits and doesn't include all personal property, such as animals, birds or fish; motorized vehicles (such as scooters or motorcycles); and CB radios, tape decks, CD players, etc., that are in a car or truck. These items are usually covered under other policies, like auto insurance or other special coverage.
Coverage you'll wish you had (if you should ever need it)
Have a beautiful diamond engagement ring and wedding band? Or an old watch given to you by your grandfather or other relative? What about all that antique jewelry your grandmother gave you?
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Certain classes of property such as these have specialized limits of coverage. In other words, if it's irreplaceable, get it appraised and purchase what's called a rider. This is a type of coverage especially popular for jewelry, since it will replace the dollar value of the piece based on an appraiser's estimate - instead of your own. A rider is also good for that signed Babe Ruth baseball, the coin collection you've been hoarding since you were a kid and any other valuable property.
If your home is ever burglarized - or you lose your wedding ring scuba diving in Belize - you'll be happy you have the added coverage. Keep in mind, too, that separate coverage is usually necessary for boats and other watercraft, including trailers and related equipment, since your homeowners insurance won't cover the cost of replacing those. Coverage that's nice to have…just in case
Say your house suddenly burns down while you're at work and the kids are at the pool for the day. While this is certainly an incredible loss, knowing you are covered will offer some peace of mind. Beyond that, what's next? Where will you stay if there's nowhere to go?
Coverage D, sometime called additional living expense, will pay for your housing and other living expenses like meals and laundry if a major loss makes your house uninhabitable and you have to live elsewhere while it's being repaired or rebuilt. It's something that hopefully you will never need, but nice to have just in case you need it.
Texas weather is another issue. All in all, Texas is a great state with nice people and lots of opportunities. The cost of living is still relatively low, housing is still fairly affordable and summertime living is generally relaxed - well, except for the 100-plus-degree heat every once in a while.
But Texas storms are one of the endearments of the state that are a simple truth for residents. It's just about guaranteed that you'll have to take your car in to repair the hail damage from a freak storm on a sunny day, or that your roof will need to be replaced because of high winds.
Luckily, an updated homeowners insurance policy provides coverage for these and other perils, including: fire or lightning; windstorm or hail; explosions; aircraft (for example, if one ever used your home as a landing strip); vehicles (if, say, someone ran into your front porch); riot or civil commotion (the ice cream man runs out of Neapolitans, for example); smoke; theft; vandalism/malicious mischief; glass breakage; or even a volcanic eruption (not too much chance of that happening in Texas, but you never know).
The important thing to remember in all of this is to call your insurance agent, review your policy, and make sure you're covered. In Texas, as with most places, it pays to be safe than sorry.
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