Are you paying too much for Homeowners Insurance?

A peril is an event, like a fire or break-in, that may damage your home or belongings. There are two ways perils are covered in a homeowner policy. named perils and all risk or open perils.

A named peril policy is a policy that specifically names the perils that will be covered. Often times, things such as fire, lightning, explosion, smoke, wind, hail, vandalism, riots, and certain types water damage are covered. Depending on the policy, what is covered will vary but if it’s not listed, it will not be covered.

An all risk or open peril policy will cover any peril that is not excluded from the policy. Common exclusions for a homeowner policy are war, earth movement, floods, and nuclear hazards. Again, each all risk policy will have different exclusions, but unless it’s specifically excluded in the policy, it will be covered.

Replacement cost insurance pays for the full replacement cost of your items, whereas actual cash value insurance only pays for the depreciated value. With replacement cost insurance, you’ll have enough money to replace your belongings.

Water damage is the number one non-weather related claim in Texas. There are four primary water coverages available; sudden or accidental discharge, continuous and repeated leakage, sewer backup and overflow and foundation/slab leak.

No! Depending on the carrier and type of homeowner policy coverage for water damage can very. Be sure to question your agent and ask to verify. Simply put, if it is not listed in the policy it is not covered.