What is Replacement Cost and why do I need it?
Replacement cost is what it cost to rebuild your home exactly the way it is now with NEW materials. In the event of a total loss (your home completely destroyed) the insurance company is responsible for building you a brand new home on the same exact site your home was before the total loss. Replacement cost is usually higher than you might expect. This is because replacement cost also includes debris removal (we have to get the debris off the slab before we rebuild the home). Also included in replacement cost is the cost of building permits. This is why the replacement cost is more than the appraised value of the home or the market value of the home. Replacement cost is necessary because without it you would be paying your current mortgage plus rent or a new mortgage. How, you say? Well, the Actual Cash Value of a home, in most cases, will not pay off your current mortgage. This means you will still be paying that mortgage after the insurance company pays you the actual cash value of your home.
How much liability should I carry on my auto policy?
That is an easy question to answer. Carry as much liability as you can afford. Liability protects YOU not the other person. If you cause damage to another person YOU are held responsible. Think about the last time you were driving down the freeway. What vehicles were sharing the road with you at that time?. Would $25,000 be enough to replace the Ford F-350 Supercrew? No. Would $50,000 be enough to cover the BMW? No. I know, I know, you can't get blood from a turnip!! You are right, if you don't have $50,000 then you can't pay someone $50,000. But they can force you into a SR-22 until the debt is paid. They can place settlements on your credit report. The person you hit can make life very difficult for YOU.
Do I need flood insurance?
Everyone needs flood insurance. Not because of rain or because of the frequency of flooding in your neighbor but because the cost is low. Flood insurance will cover you if the above ground pool floods your home. Your homeowners policy will not. Flood insurance will cover you if the street drain is obstructed and your home floods. Homeowners insurance will not.
Can I pay my windstorm policy through TWIA monthly?
Yes, we can offer monthly payments on TWIA policies through CG Premium Finance, Inc.
What is included in my Homeowner’s Insurance policy? What should I keep in mind before buying a policy?
Your homeowner’s insurance covers your house, permanent fixtures and fittings, garden walls, gates, fence, pool, and your personal belongings.
This policy protects you from specific types of home-related accidents and incidents. The most common types are fire, theft, and vandalism. In case you are unable to stay in your home due to accidents or other incidents, the policy provides additional living expenses, such as hotel expenses.
It also provides liability protection. Ideally, the amount of coverage should be sufficient to replace your home and property, and also cover your liabilities. If you stay in a flood or earthquake-risk area, you should separately purchase flood/earthquake insurance, because homeowner’s insurance usually doesn’t cover floods and earthquakes.
Can I increase or decrease the amount of insurance on personal items in my home?
Your personal property coverage usually reflects 50 percent of your home insurance coverage. It may be increased or decreased, depending upon state requirements.
Can I lower my home insurance premium?
Yes, you can lower your homeowner insurance premium by asking for discounts on your current policy, holding multiple insurance policies with your insurance carrier, and raising your deductible.
What happens to me if I drive without auto insurance?
If you are involved in an auto accident and found to be driving without car insurance or proof of financial responsibility, you will be subject to penalties specific to Texas. That could include a fine, or even loss of driving privileges. If you are uninsured and in an accident that involves property damage or injuries to people, you will be required to pay on your own for any damages assessed by a court. You will also be required to carry an SR-22 on your auto policy until all the damages are paid in full. This will affect your ability to get a job, to get a loan and will adversely affect your credit score.
What do I do if I meet with a car accident?
First, you need to notify the police and take pictures of any damages to all vehicle involved in the accident. It is also helpful to write down or record all statements made by the other parties involved." You should also exchange information with the other driver(s) involved in the accident. Next, you should immediately contact your insurance company, and do what the insurance company advises you to do. Please do not ever admit fault. Who is at fault is for the police or the claims adjuster to decide. An accident can bring immediate emotional responses that can change your perspective. Let an unbiased third party determine fault.
Why do different people pay different levels of premium?
The amount you pay depends on the level of risk you provide to your insurer. The price you pay for life insurance depends mainly on your age, health, lifestyle, and occupation. So if you are older, have health problems and smoke, and happen to work in a dangerous environment, you will have to pay more for life insurance than someone who is younger, healthier, a non-smoker, and in a low risk occupation.