Homeowners

Following is a list of the most frequently asked questions from our homeowner customers. The answers have been designed to give you general information. Each company defines their own coverage, terms, limitations and exclusions, therefore, we recommend you thoroughly review your policy for more detailed answers.

Q1: What is covered on a Homeowner policy?
Q2: What perils does my policy cover?
Q3: How much coverage should I insure my home for?
Q4: What are "Separate" or "Other" Structures?
Q5: How much contents coverage is adequate?
Q6: What is Loss of Use / Additional Living Expenses?
Q7: What does Personal Liability cover?
Q8: What does Medical Payments cover?
Q9: How is the deductible applied?
Q10: How can I lower my premium?
Q11: What do I do if my mortgage company changes?
Q12: Is my personal property covered while I am moving from one home to another?
Q13: Can I transfer my current insurance policy to another property?
Q14: Why do coverage amounts and premiums increase?
Q15: Why should I choose Centex Insurance Agency/HomeAdvantage Insurance Services as my agent?
Q16: Can I keep my policy after I pay off my loan?
Q17: What are the common optional coverages?

Q1: What is covered on a Homeowner policy?

A: A Homeowner's policy is a package type of policy, which means that it includes protection for several types of possible losses, including damage to your structure, your personal property and any liability or medical claims that may arise. back to top

Q2: What perils does my policy cover?

A: The standard homeowners policy covers Fire, Lightning, Smoke, Windstorm, Hail, Theft, Vandalism, Malicious Mischief, Explosion, Aircraft and Vehicle Damage, Riot & Civil Commotion, Falling Objects, Accidental Discharge of Water or Steam and Freezing of Plumbing, Heating and Air Conditioning Systems. back to top

Q3: How much coverage should I insure my home for?

A: The dwelling should be covered for the estimated replacement cost, not including land value. This is generally determined by the average cost contractors in your area would charge to rebuild your specific home in the event of a loss. Do not be underinsured! A company charging you a lower premium does not mean you are adequately covered. back to top

Q4: What are "Separate" or "Other" Structures?

A: The standard homeowner policy provides coverage for "separate" or "other" structures which are not attached to the dwelling such as fences, sheds, pool, and detached garages. This is generally 10% percent of the dwelling amount, but can be increased if the replacement value is greater than this amount. back to top

Q5: How much contents coverage is adequate?

A: Coverage for your contents (personal property) is provided at a percentage of your dwelling amount. This generally ranges between 50% and 75% of your dwelling coverage. There are special limitations on certain personal property items such as jewelry, furs, watches, guns and silverware. Please check these limitations on your policy and be sure the amount is adequate in case of a loss. If not, a Personal Articles Schedule can provide broader coverage for specified items. Ask us for a quote!

Q6: What is Loss of Use / Additional Living Expenses?

A: This coverage pays for increased costs of temporary living arrangements after a covered loss occurs. This includes hotel and food expenses incurred beyond your normal monthly expenses. back to top

Q7: What does Personal Liability cover?

A: This coverage protects you against claims resulting from alleged bodily injury or property damage for which you may be legally liable. You would be covered up to the liability limit stated in your policy for each occurrence. This excludes auto and business related claims. back to top

Q8: What does Medical Payments cover?

A: This coverage pays for medical expenses of guests or others injured at your premises up to the coverage limit. back to top

Q9: How is the deductible applied?

A: The deductible is the amount you pay towards each claim. The company will adjust and settle each claim for the full amount less the deductible. You do not have to pay this in cash. back to top

Q10: How can I lower my premium?

A: There are several things which help reduce your insurance premiums. On premises alarm systems such as fire, smoke and burglar, or Central Station alarms sytems which connect directly to a fire or police department or 24 hour monitoring company will provide discounts. Also, increasing your deductible will lower your premium costs as well. back to top

Q11: What do I do if my mortgage company changes?

A: Call us immediately and we will endorse your policy to reflect the new mortgage company. This is very important especially if your lender pays for your insurance policy through an insurance escrow or impound account. One of the most common reasons policies cancel is due to non-payment because the renewal invoice was sent to the incorrect lender. back to top

Q12: Is my personal property covered while I am moving from one home to another?

A: Yes. Your current homeowner policy extends coverage for 30 days. Personal property coverage may be subject to limitations and exclusions so please review your policy to make sure you know what the limitations are. back to top

Q13: Can I transfer my current insurance policy to another property?

A: No. Your policy is not transferrable. Each policy is issued to cover a specific property address which is shown on the "Declaration" page. When this property address changes, a new policy must be issued. back to top

Q14: Why do coverage amounts and premiums increase?

A: Your dwelling coverage amount may be adjusted annually to reflect the current replacement cost of your property. As your policy renews, certain new home credits may be reduced also. Higher deductibles or alarm credits are available which can help lower your premium. back to top

Q15: Why should I choose Centex Insurance Agency Insurance Services as my agent?

A: We offer insurance in more than 40 states and we pride ourselves in the insurance experience that our licensed representatives have and also our affiliation with top rated insurance companies who provides you with coverage for both home and auto. back to top

Q16: Can I keep my policy after I pay off my loan?

A: Yes. Please notify us immediately when you pay off your loan so we can delete the lender from your policy. back to top

Q17: What are the common optional coverages?

Optional Coverages

Several optional coverages can be purchased to meet your insurance needs.

Earthquake

This provides coverage for earthquake damages that exceed specified earthquake deductibles.

Excess Personal Liability

This provides additional coverage beyond the liability limits stated in your Homeowner's and Auto policies.

Personal Articles Schedule

This provides coverage above standard limitations for certain items (i.e., jewelry, furs, fine arts, silverware, etc.)

Building Code Upgrade

This provides coverage for the extra cost required to bring your house "up to code" in the event of a covered loss, i.e., replacement of a wood shingle roof with a composition roof.

Flood Insurance

The Homeowner's policy excludes coverage for damages due to surface floodwaters. A separate policy can be written to obtain coverage for floodwater damage.

Loss Assessment Coverage

For condominium owners, this is a valuable coverage. This coverage will pay for your share of the loss charged by a corporation or association of property owners (i.e. HOA) up to the specified limits of the policy.