Home Insurance

Why You Need to Purchase Home Insurance

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Whenever you take a mortgage to purchase a home in Dallas, TX or elsewhere in DFW, the lender will direct you to buy a home insurance policy to protect their interests. Unfortunately, most of the homeowners who purchase homeowners’ insurance policy from Thompson Insurance Services don’t understand its features and how it can save them in the event of a disaster.

Do not allow the excitement of purchasing a new home be cut short by the numerous unforeseen risks that can put you in a financial crisis. Make sure that you have the right policy to protect your biggest asset. Here is all that you need to know about home insurance.

What Does a Homeowners’ Insurance Policy Cover?

A standard home insurance policy offers coverage for the house structure and other structures that are attached to it such as your car garage, gazebo, or shed. It also covers your personal property such as clothes, furniture, and electrical equipment in case of theft, fire, wind, or hail.

The liability coverage offers protection against lawsuits that may be filed against you if an accident occurs in your home. Your standard home insurance also covers loss of use meaning that if a disaster such as fire happens and your home is rendered uninhabitable, the coverage will cater for things such as hotel costs.

There are Different Types of Home Insurance Policies

The home insurance coverage can either be an HO-3, HO-5, or HO-6 policy. However, the most common type is the HO-3 which offers you coverages against the common disasters that are covered by the policy. It insures personal property against all named perils. The HO-5 covers both your home structure and personal property while the HO-6 policy is meant for condo or co-op owners.

It’s Mandatory

All mortgage companies require you to purchase home insurance for you to access financing. If you don’t have home insurance at the time of closing the deal, the lender will be forced to get one for you through a provider of their choice.

Are you a homeowner in the Dallas, TX area? Contact Thompson Insurance Services today for your home insurance policy needs.

Five Facts about Home Insurance

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Thompson Insurance Services wants to help homeowners around the DFW area learn more about home insurance information. A wide variety of policies are available to homeowners which can range from structural protection to liability protection. Here are a few facts about home insurance.

Five Facts on Home Insurance

The first fact to know about home insurance in Dallas, TX is that there are different levels and types of coverage. Tailoring your coverage to your needs is important. The first type of home insurance policy is the named the perils policy which only covers what is explicitly described. The all-risk policy is a very common variety of coverage which safeguards your residence from many kinds of damage.

The second fact to know about home insurance in Dallas, TX is what is covered by your policy. Even all-risk policies, which insure your home against many types of damage, usually does not cover it against every type of damage, such as earthquake damage, flooding damage, and damage due to insects or pests like rodents or mice.

The third fact to know about home insurance is the maximum amount of money an insurance company must pay if your house is damaged beyond repair. It is important to check that this amount is high enough to pay for any damages. Eighty percent of a home’s replacement cost is what most insurance companies have as a requirement.

The fourth fact to know about home insurance is that most insurance companies will not replace stolen, damaged, or broken items. The insurance company will pay you the cash value of any such items in the event they suffer damage or are stolen. That way, you can repurchase the same item.

The fifth fact to know about home insurance is most home insurance policies do not cover flood damage. Therefore, if you live in a flood-prone area, it is a good idea to buy flood insurance. If you are interested in finding out more information or purchasing home insurance, the agents of Thompson Insurance Services are more than happy to help you.

Thompson Insurance Services offers a wide range of insurance policies so that you can find one suited to your needs. Reach out to our agents to get a quote and get started, or try our online rating tool for quotes from home on home insurance.