How to Apply for Homeowners Insurance

The thought of purchasing homeowners insurance may be overwhelming to homeowners the first time they go through the process. Most of us really don’t have the slightest idea what to expect when buying insurance, what paperwork is needed or some of the important aspects to cover when ordering insurance. These tips may give you some insight into the process and at least raise some questions to discuss with your new insurance agent. Before we go on, we would like to give special thanks to for giving the best rates for people seeking Homeowners Insurance in Texas.

The Purpose of Homeowners Insurance

The main purpose of homeowners insurance is to protect against loss (financial risks) for you and the bank. If there is no loan on a home, homeowners insurance is not required. Because most people have such a substantial investment in their home, they normally purchase their own insurance policy to protect their largest asset.

However, if you’re buying a home and intend on paying for it with a loan from a bank, credit union or another source, you’re more than likely required to carry homeowners insurance by the loan company to cover the loss if your home is damaged or destroyed by a natural disaster or other circumstances. This protects the bank’s investment.

Coverage Options

There are several types of coverage options available for purchase, but liability coverage, personal property coverage and the cost of rebuilding are three of the most important to consider.

• Liability coverage covers you for medical payments in the event someone trips on your stairs or falls in your drive for example.

• Personal Property coverage pertains to homeowners insurance on all your personal possessions within the home, tool shed or garage etc. For example, possessions could include clothes, appliances, furniture, stereo equipment and so on.

• Rebuilding costs can be estimated using an online rebuilding calculator. Do not use the market value of a home because it does not represent true building costs. Do not include the cost of the land because it won’t be replaced. Make sure rebuilding costs include the cost for demolishing the last of the structure, debris removal and hauling.

Extra Insurance

It is very important to consider extra insurance coverage based upon the geographical location of the home. For example, if you purchase a home on the coastline in Texas, you more than likely need to ask whether hurricane insurance and flooding coverage are included or need to be purchased as a separate rider in addition to your homeowners insurance policy.

The Application Process

The insurance carrier will require a great deal of personal information including: your birth date, marital status, Social Security number, occupation, history of employment, previous address, credit history, criminal record and your insurance history.

Next, you’ll need to have on hand all the information pertaining to the home you’re insuring such as the value of the house, square footage, age of the house, main building materials used in construction, condition and age of electrical and plumbing systems. You’ll also be asked to supply the distance of the home from the closest fire station and fire hydrants.

Your agent will ask for a list of personal property items to be insured. The best way to handle this request is to create an inventory of all your personal items that need to be insured on your homeowners insurance policy.

The inventory should include a list of the items, purchase price (receipts when possible), condition of the item and the age of each item. It is also extremely beneficial if you photograph or take a video of all the personal property items to be insured.

Use an online insurance website to collect homeowners insurance quotes. Determine which company looks the best, and contact an agent to apply for homeowners insurance Texas statewide.