A homeowner’s insurance policy is almost always required by the mortgage company is you finance your home purchase. Though the mortgage company may demand that you have a policy, you have options in the type of coverage that you purchase as long as your policy meets the mortgage company’s minimum limits.
Many first time home buyers select an actual cash value policy. This is the simplest type of homeowner’s insurance in Conroe TX and offers the lowest level of coverage. If you have an actual cash value homeowner’s insurance policy and your home is a total loss, your policy will only cover the current value of the home and the contents. In many cases, this kind of policy is not sufficient to rebuild a similar structure at current building costs.
Another type of homeowner’s insurance is a replacement cost policy. When you buy a replacement cost policy, you don’t have to worry about depreciation. Your policy will cover replacement of your home and its contents, regardless of the current costs. A replacement cost policy can give a homeowner peace of mind but is more expensive than an actual cash value policy.
A third homeowner’s insurance type is called a guaranteed replacement cost policy. This kind of homeowner’s insurance in Conroe TX will cover the replacement costs of your home and its contents even if doing so would exceed the limits of the policy. Guaranteed replacement cost policies are the most comprehensive and the most expensive. Before you purchase a guaranteed replacement cost policy, review the limitations with your insurance agent.
There are many discounts available to homeowners to help lower insurance premiums. One of the best ways to decrease the cost of your insurance is to increase your credit score. Other ways to lower your premium include purchasing a home near a fire hydrant, installing a security system, moving into a community with a neighborhood watch group and purchasing your homeowner’s insurance from the same company as your auto and life insurance.
Metro Allied Insurance offers a variety of insurance products to meet the needs of home and business owners and can insure cars, trucks, motorcycles and boats.