Homeowners Insurance In Frisco, TX: 4 Things You Need To Know

Homeowners Insurance Frisco TXIf you have just purchased your first home,  homeowners insurance in Frisco, TX is probably one of the parts of the process you think about the least.  However, buying the right homeowners insurance is essential and requires a good deal of research on your part.  As with most types of insurance, there are many levels, layers and nuances you must take into account before you buy insurance, especially before something bad happens that requires you to make a claim.  Here are 4 of the most important things you need to know about homeowners insurance in Frisco, TX:

1 – You Should Contact More Than One Company about Homeowner’s Insurance in Frisco, TX

Not all policies and not all insurance companies are created equal.  Check on prices and coverage with at least three insurance companies before you purchase a policy, but remember to compare the exact same types of coverage for each to make a fair price comparison.  And, because you’ll be making a claim only if something bad has happened, you’re going to need to know that your insurance company has excellent (and reachable) customer service.  If your first impression of any of the companies you contact is that their customer service is less than stellar, move on to another.

2 – You Should Make Sure Your Insurance Payments Are Paid Out Of Your Escrow Account

Most lenders require that they disburse your homeowners insurance payments from your escrow account to ensure that you actually have paid insurance to cover damage to your home.  Most will also pay your property taxes from your account as well.  If you choose this option, you may be asked to pay one year’s worth of premiums at closing so that your lender can begin disbursements right away.

3 – You Should Make Sure You’re Getting The Right Level Of Coverage

The many levels or types of insurance include:

  •   HO1 – This is the most basic and inexpensive type of insurance, but with limited coverage.  Many lenders won’t accept this type of insurance because of its limitations.
  •   HO2 – This has broader coverage than HO1, but limited reimbursements.
  •   HO3 – This is the most popular type of policy in America.  Over 80% of homeowners have this level of insurance that covers “all perils and risks” except those specifically excluded.
  •   HO6 – This covers condominiums, and in addition to providing coverage for personal property, liability and medical expenses, it also covers the inside walls of your unit, which you own.
  •   HO8 – This is similar to HO2, but it is specifically for older homes and only covers the cash value of the home, not the replacement cost.

4 – You Should Learn the Meaning of Important Insurance Terms

You don’t have to learn every insurance term that you’ll find in your policy, but there are some that are important to your understanding of what is expected of you and of your insurance company.  Premium, deductible, liability coverage, personal property, replacement cost, actual cash value, sub-limits and riders are just some of the insurance terms you should understand before you buy homeowners insurance in Frisco, TX.  Ask your insurance agent to explain them to you, or go online.

When you’re ready to purchase insurance for your new home (or you want to switch insurance companies or coverage on a home you already own) call us at the Anthony Blackmon Agency at (469) 291-9006.  We offer homeowners insurance in Frisco, TX from many major companies, and we can find the right product for you.  Visit us online at www.anthonyblackmonagency.com to learn more.

Homeowners Insurance Frisco TX
Anthony Blackmon Insurance Agency
9191 Kyser Way, Suite 200
Frisco, Texas 75034
(469) 362-8484

Comments are closed.