As Independent Insurance Agents, We sincerely believe that we are the best way to shop for any type of property insurance. Home insurance, auto insurance, and even motorcycle and boat insurance. Why an independent agent? We are authorized to represent many different companies in order to give our clients plenty of options when it comes to their property and liability insurance. So what companies are we authorized to sell?
Homeowners of America
Texas Fair Plan
This is not a static list, as we are always seeking out new insurance companies in order to give our clients even more choices. Contact your insurance consultant today, and take a look at how your current insurance rate stacks up against one of our many insurance companies.
McKinney, Texas put on a great car show on the 4th of July, 2015. As usual we ran into lots of classic car insurance customers, and even some modern collectible car insurance customers. We love going to shows, and nothing makes your heart swell with American Pride on Independence Day more than an incredible lineup of (mostly) American steel.
The last time we got together, I tried to explain how the deductible works, and some things that you should consider when choosing a property deductible. I’ll wait if you want to go back and read it again. Go ahead. Done? Good. Now that you have chosen how much deductible you are going to pay in the event of a loss, we can talk about when to use them.
We will start with the easier of the two – your auto insurance. I want to start the restof this article by saying this; you pay for insurance to protect your things. Sometimes, a claim just needs to be made. With auto insurance, mist claims are worthwhile, because you have had an accident. The only claims we caution clients to consider avoiding are windshield chip claims. While they won’t raise your rates directly, they can be problematic if we need to quote your policy with other companies. Unless your windshield is broken, it is best to pay for the chip repair yourself. With other claims, my personal rule of thumb is to consider the payout – if you have a $500 deductible, do you really need to make a $600 claim? Those types of claims are pretty rare on auto policies, due to the rising cost of auto repairs. Also, remember that most car insurance policies now come with some form of roadside assistance, and if you have to use that service, it does not count as a claim.
The big question you should ask yourself when it comes to homeowner’s insurance claims is whether or not the claim is “worth it” or not. Just like with auto insurance, if you have an $1100 claim and a $1000 home insurance deductible, it’s probably not “Worth it” to make a claim. Most home insurance policies here in Texas have a 1% wind and hail deductible, so if you are in a $130,000 home, then you probably have a $1300 deductible. However, a hail claim doesn’t “count against you” for rate purposes. A water claim or a burglary claim, on the other hand, will increase your rates, so it’s imperative to consider what the claim is worth before you call the insurance company. Your first call should be to our office to chat with one of our consultants about your claim.
In fact, we even have a “claims advocate” here at The Phoenix Insurance to help guide you through the claims process. Hopefully, you will never need the advocate’s help, but if you have a claim and have any questions, concerns, or needs, he is here to help you understand the claims process, and make it a smooth one. Whether you have had an auto accident or a water claim on your home, our claims advocate is here to help you get made whole again as quickly and painlessly as possible.
Car collecting and car shows are really a great family hobby. Everyone can enjoy going out to a show of like minded people, and admiring the work and love they put into either making their car their own, or restoring a tired old car to its former glory. This Mesquite show was a great place to meet up with several of our classic car insurance clients.
Homeowner’s insurance covers things that you didn’t even knew it covered.
Call a Dallas Home Insurance agent today.
I can’t tell you how many times I hear “That’s not what it appraised for” or “That’s not what I paid for the place” when I talk to clients about the amount that the insurance company wants to cover their house for. So I’m going to explain it to you, gentle reader, and help you understand why the insurance company wants to cover your house for “so much money”.
1. Appraisal value and sale value are just numbers.
The appraisal value is what the county thinks your house is worth – and everyone fights that number so they can pay less taxes anyway. Appraisal value is what you could theoretically sell your home for. Sales price is what you actually pay for your house. Sometimes (most times) the appraisal and the sale price are a vastly different number than what you should insure your house for.
2. Replacement cost coverage is there to help you replace your house – it’s what you want.
Unlike when you wreck a car, if you have a house fire or something else happens to your house, you are married to the land it was built on. You don’t just toss them the keys and buy another house; you rebuild. Most people don’t consider the cost of debris removal when it comes to their coverage. When your house burns, you will have to take away all of the burned up house bits and build a new house. I don’t know if you have done any major rennovations lately, but debris removal is pricey. Insurance companies build a lot of houses every year, and they know what it costs to rebuild – and to take away the trash. Every company has a “replacement cost calculator” that they use to make the estimate. They ask lots of detailed questions about the house to arrive at the coverage. If you have bought a replacement cost policy and haven’t answered a ton of questions about your house, your coverage may not be accurate.
3. Actual Cash Value is a fool’s game.
Actual Cash Value (or ACV) coverage is a differnt kind of coverage – basically, you pick the number that you think your house should be insured for, and then get ready to be angry at claims time. This is the kind of home insurance that people who want to “just insure the house for what I paid” get. Well, here you get less than you insure for – and I’ll explain. An ACV coverage covers the home for Actual Cash Value – Less Depreciation. That “less depreciation” is the kicker there – say you have an average house, built in 1974, that you paid $140,000 for – that house is 37 years old, and will be depreciated somewhere beteween one and two percent per year for 37 years. Even if it is only 1% depreciation, it means that your home would be valued at $88,000 – before you pay your $1500 deductible. If the place were to burn down, you would be doing well to put up a trailer where your house once stood.
Your home reperesents a significant investment – but more important, it is your home, a place where you will be dry and out of the cold, where you will hang photos of your kids, your dogs – and photos of your kid’s dogs. When people come to me with lower coverage than they need, or whith an ACV policy, or with a really high deductible, it is because they didn’t take charge of their insurance. Generally, when they have these “bad” policies, the price difference is negligible when compared to a policy that actually covers them well.