-Homeowners Insurance
Replacement Cost or Actual Cash Value: Covered losses under a Texas homeowners insurance policy can be
paid on either a replacement cost basis or on an actual cash value basis. When "actual cash value" is used, the
policy owner is entitled to the depreciated value of the damaged property. Therefore, the older the item is, the
less money you may receive for it. If you choose the "replacement cost" coverage, the Texas homeowners
insurance policy will reinburse the amount it costs to replace the property with something of a similar type and
quality at current prices.
All Risks or Named Perils: An "All Risks" policy provides the broadest Texas homeowners insurance protection because it will
cover losses that are due to any peril except those specifically excluded in the policy. A "Named Perils" policy covers losses that
are due to only those perils listed in the standard Texas Homeowners Insurance policy and typically include fire, hail, windstorm,
and other physical losses.
Coinsurance Penalty: If your policy limit is less than 80% of the replacement cost of your home, you will face a "coinsurance
penalty," which means you'll have out-of-pocket expenses to cover costs beyond the policy deductible you chose. For example
purposes we will assume your home's estimated replacement value (RCV) is $100,000. The co-insurance clause requires you carry at least $80,000 (80% of your RCV). If you chose to purchase only a $40,000 Texas Homeowners Insurance policy you would be
underinsured by half. Therefore, in the example the insurance company would pay one-half of a loss less the policy deductible,
so if you suffered a $10,000 covered loss to your house, condominium or townhouse and had a $500 deductible, your policy would
only pay $4,500.
Personal Liability: Personal liability in a Texas homeowners insurance policy is also an important part of having security from
accidents that may occur on your property. We suggest you choose coverage limits that are not less than those on other liability
insurance you own, such as car insurance.
-Auto Insurance
Collision Coverage: Covers damage caused to the owners auto from a collision caused by another auto or other object. The
deductible is the amount you choose to pay upfront (if any) before the auto insurance policy pays. The higher the deductible chosen the lower the collision coverage cost within the car insurance policy.
Comprehensive Coverage: Covers damage caused to the insured's auto (your automobile) from risks such as theft, fire, falling
objects, earthquake, flood, missiles, explosion, riot and civil unrest. The deductible is the amount you choose to pay upfront (if any)
before the auto insurance policy pays. The higher the deductible chosen the lower the comprehensive coverage cost within the
Texas auto insurance policy.
Liability Coverage (Bodily Injury & Property Damage):
Bodily Injury Liability: Injuries that you (insured) cause to someone else is covered under this part of an auto insurance
policy. The minimum liability insurance coverage available for purchase in Texas is 20/40 and is explained in detail below.
However, we recommend that you choose liability insurance coverage amounts that are much higher than the minimums
listed below. Contact us toll free at (800) 582-4368 to discuss what liability coverage amounts you require to meet your family and personal needs.
Property Damage Liability: Damage caused by the insured (you) to someone else's property, such as a motorcycle, car,
truck, fence, or house, is covered through property damage auto insurance coverage. This coverage also assists in
protecting you if a lawsuit arises from an accident. The minimum coverage amount in Texas is $15,000.
Texas Liability Coverage limits explanation:
20/40/15 20=$20,000 - 40=$40,000 - 15=$15,000
First number = bodily injury liability maximum for one person injured in an accident.
Second number = bodily injury liability maximum for all injuries in one accident.
Third number = property damage liability maximum for one accident.
Medical Payments Coverage: Medical payments coverage pays for the medical and funeral expenses for you or others hurt or
killed in an accident while riding in or driving your car or truck. Claims against this coverage include all reasonable hospital,
surgical, chiropractor, X-ray, dental, professional nursing, prosthetic, and funeral expenses. It will also cover you or members of your
family if you are hit by a car when you are walking or if you are riding in another car or truck. This coverage will pay for your medical
and funeral expenses even if you cause the accident. The coverage is often limited to medical care you get in the first one, two, or
three years after the accident and is limited to a specific dollar amount. This is not a required Auto Insurance coverage in Texas.
No Fault Coverage (PIP): Texas does not require "No Fault" insurance coverage. This coverage pays medical bills for injuries
suffered in an auto accident regardless of who caused the accident.
Benefits Provided Include: Pays 80% of all reasonable expenses for necessary medical, surgical, x-ray, dental and rehabilitative
services, including prosthetic devices, wheelchairs, crutches, slings, neck braces and splints (including necessary travel related
to medical care.)
Necessary remedial treatment (nursing home care or home nursing care).
Pays 60% of gross income loss caused by inability to work because of an injury suffered in an accident.
$5,000 death benefit
Uninsured Motorist Coverage: Covers the insured (you) for your bodily injury caused by a hit-and-run driver or an at-fault driver
who has no auto liability insurance. This coverage is not required for Auto Insurance in Texas. Contact us toll free at (800) 582-4368
to discuss what uninsured coverage amounts you require to meet your family and personal needs.
Example of uninsured motorist limits:
20/40 20=$20,000 - 40=$40,000
First number = uninsured motorist maximum for one person injured in an accident.
Second number = uninsured motorist maximum for all injuries in one accident.
Underinsured Motorist Coverage: This coverage comes into play when an at-fault driver has auto or motorcycle liability
insurance, but the limit of insurance is inadequate to pay for your damages.
Underinsured Motorist Bodily Injury Coverage: This type of auto insurance coverage pays for your medical expenses, lost wages,
and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient auto or
motorcycle insurance coverage. The auto insurance coverage typically pays the difference between the coverage limit you select
and the other driver's bodily injury coverage limit. This is not a required auto insurance coverage in Texas.
Underinsured Motorist Property Damage Coverage: Protects you if your auto is damaged in an accident caused by a driver who
has insufficient auto insurance coverage. This coverage pays the difference between the coverage limit you select and the other
driver's property damage coverage limit. This is not a required coverage in Texas.
-Motorcycle Insurance:
Collision Coverage: Covers damage caused to the owners motorcycle from a collision caused by another vehicle or other
object. The deductible is the amount you choose to pay upfront (if any) before the motorcyle insurance policy pays. The higher the
deductible chosen the lower the collision coverage cost within the car insurance policy.
Comprehensive Coverage: Covers damage caused to the insured's motorcyle (your motorcyle) from risks such as theft, fire,
falling objects, earthquake, flood, missiles, explosion, riot and civil unrest. The deductible is the amount you choose to pay upfront
(if any) before the motorcyle insurance policy pays. The higher the deductible chosen the lower the comprehensive coverage cost
within the motorcyle insurance policy.
Liability Coverage (Bodily Injury & Property Damage):
Bodily Injury Liability: Injuries that you (insured) cause to someone else is covered under this part of a motorcyle insurance
policy. The minimum liability insurance coverage available for purchase in Texas is 20/40 and is explained in detail below.
However, we recommend that you choose liability insurance coverage amounts that are much higher than the minimums
listed below.
Property Damage Liability: Damage caused by the insured (you) to someone else's property, such as a motorcycle, car,
truck, fence, or house, is covered through property damage motorcycle insurance coverage. This coverage also assists in
protecting you if a lawsuit arises from an accident. The minimum coverage amount in Texas is $15,000.
Texas Liability Coverage limits explanation:
20/40/15 20=$20,000 - 40=$40,000 - 15=$15,000
First number = bodily injury liability maximum for one person injured in an accident.
Second number = bodily injury liability maximum for all injuries in one accident.
Third number = property damage liability maximum for one accident.
Medical Payments Coverage: Medical payments coverage pays for the medical and funeral expenses for you or others hurt or
killed in an accident while riding in or driving your motorcyle. Claims against this coverage include all reasonable hospital,
surgical, chiropractor, X-ray, dental, professional nursing, prosthetic, and funeral expenses. It will also cover you or members of your
family if you are hit by a car when you are walking or if you are riding on another motorcycle. This coverage will pay for your medical
and funeral expenses even if you cause the accident. The coverage is often limited to medical care you get in the first one, two, or
three years after the accident and is limited to a specific dollar amount. This is not a required motorcyle insurance coverage in
Texas.
Uninsured Motorist Coverage: Covers the insured (you) for your bodily injury caused by a hit-and-run driver or an at-fault driver
who has no auto or motorcycle liability insurance. This coverage is not required for Motorcycle Insurance in Texas.
Example of uninsured motorist limits:
20/40 20=$20,000 - 40=$40,000
First number = uninsured motorist maximum for one person injured in an accident.
Second number = uninsured motorist maximum for all injuries in one accident.
Underinsured Motorist Coverage: This coverage comes into play when an at-fault driver has auto or motorcycle liability
insurance, but the limit of insurance is inadequate to pay for your damages.
Underinsured Motorist Bodily Injury Coverage: This type of motorcycle insurance coverage pays for your medical expenses, lost
wages, and other damages when you or your passengers are injured in an accident caused by a driver who has insufficient auto or
motorcycle insurance coverage. The motorcycle insurance coverage typically pays the difference between the coverage limit you
select and the other driver's bodily injury coverage limit. This is not a required motorcycle insurance coverage in Texas.
Underinsured Motorist Property Damage Coverage: Protects you if your motorcycle is damaged in an accident caused by a driver
who has insufficient auto or motorcycle insurance coverage. This coverage pays the difference between the coverage limit you
select and the other driver's property damage coverage limit. This is not a required coverage in Texas.
-Boat Insurance
Collision Coverage: Covers damage caused to the owners boat from a collision caused by another boat, vehicle, or other object. The deductible is the amount you choose to pay upfront (if any) before the boat insurance policy pays. The higher the deductible
chosen the lower the collision coverage cost of the Texas boat insurance policy.
Comprehensive Coverage: Covers damage caused to the insured's boat (your boat) from risks such as theft, fire, falling objects, earthquake, flood, missiles, explosion, riot and civil unrest. The deductible is the amount you choose to pay upfront (if any) before
the boat insurance policy pays. The higher the deductible chosen the lower the comprehensive coverage cost of the Texas boat
insurance policy.
Liability Coverage (Bodily Injury & Property Damage):
Bodily Injury Liability: Injuries that you (insured) cause to someone else is covered under this part of a boat insurance policy. The
minimum liability insurance coverage available for purchase in Texas is 20/40 and is explained in detail below. However, we
recommend that you choose liability insurance coverage amounts that are much higher than the minimums listed below. Contact us
toll free at (800) 582-4368 to discuss what liability coverage amounts you require to meet your needs.
Property Damage Liability: Damage caused by the insured (you) to someone else's property, such as coverage. This coverage
also assists in protecting you if a lawsuit arises from an accident. The minimum required coverage amount in Texas is $15,000.
Texas Liability Coverage limits explanation:
20/40/15 20=$20,000 - 40=$40,000 - 15=$15,000
First number = bodily injury liability maximum for one person injured in an accident.
Second number = bodily injury liability maximum for all injuries in one accident.
Third number = property damage liability maximum for one accident.
No Fault Coverage (PIP): This coverage pays medical bills for injuries suffered in a boat accident regardless of who caused
the accident.
Benefits provided: 80% of medical benefits for all reasonable expenses for necessary medical, surgical, x-ray, dental and
rehabilitative services, including prosthetic devices, wheelchairs, crutches, slings, neck braces and splints (including necessary travel related to medical care.)
80% of necessary remedial treatment (nursing home care or home nursing care).
60% of disability benefits for any loss of gross income and loss of earning capacity from inability to work because of an injury suffered in an accident.
Uninsured Boater Coverage: Covers the insured (you) for your bodily injury caused by a hit-and-run driver or an at-fault driver
who has no liability insurance.
Example of Uninsured Limits:
20/40 20=$20,000 - 40=$40,000
First number = uninsured boater maximum for one person injured in an accident.
Second number = uninsured boater maximum for all injuries in one accident.
-Flood Insurance
Flood Perils Include:
Unusual & rapid accumulation of runoff or surface waters from any source
Overflow of inland or tidal waters
Mud slides caused by flooding
The washing away, collapse, or subsiding of land along the shoreline due to erosion or undermining of waves or currents exceeding the cyclical levels
Sewer backup caused by flooding
Outside of fire, flooding is the most widespread natural disaster. According to the National Flood Insurance Program, two adjacent
properties have to be under water to call the situation a flood. In a rural area, at least 2 acres must be submerged.
The two primary types of Flood Insurance Policies are listed below.
Actual Cash Value Policy: The value of property as figured by determining the cost to replace the damaged or destroyed
property and adjusting the replacement value by subtracting an amount that reflects depreciation. Or in other words, replacement
cost minus depreciation. Homeowners are entitled to a replacement cost value if they live in their homes at least 80% of the time and
have flood insurance coverage for at least 80% of their home's market value. Commercial and apartment buildings will be covered
only for actual cash value.
Replacement Value Policy: The amount it costs to replace or rebuild a damaged property. Replacement cost coverage is
available only for the building portion of a condominium insurance policy. Owners of single-family homes may be able to buy
replacement cost coverage on the building portions of their flood insurance policies. A Texas flood insurance replacement value
policy will pay only the replacement value up to the coverage limit. For example, if rebuilding your home will cost $400,000, but you
only purchased $300,000 in coverage, your insurance policy will pay you only $300,000.
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