Texas Auto Home Insurance Archives - 7/2006
News, questions and answers about Texas automobile and home insurance. To have your question featured here, click here to submit your inquiry.
CLAIM DOCUMENTATION
Tuesday July 25, 2006Unfortunately, most questions regarding the proof of contents arise after the claim has been filed on your homeowner policy.
Having proper records of existing contents can be cumbersome considering the numerous amounts of small appliances and trinkets most insureds owned. Simply using a video camera to photo all contents in the home will be of great help in proving the existence of these items. This will prevent lengthy waiting and aggravation in claim handling.
MORE ABOUT FLOOD INSURANCE
Tuesday July 18, 2006Most homeowners are aware that FLOOD INSURANCE is not a part of the standard Texas homeowner policy.
These simple points are mainly intended to be reminders rather than new information. 1. Flood insurance that is not mandatory, has a 30 day waiting period before it's effective date. 2. Endorsements such as replacement cost coverage do not apply to your flood policy unless the provider agrees to make it so. 3. If your mortgage company has a escrow account that pays your standard homeowners policy, it will not escrow for your flood policy if the flood insurance is not considered mandatory by the mortgage company.
Ask your agent about additional endorsements to be certain you have the necessary coverage.
REINSURANCE
Tuesday July 18, 2006If this seems confusing don't feel as though you are misinterpreting the facts.
Insurance carriers do buy insurance to protect against extreme exposures that they insure. This coverage is called REINSURANCE and these investors charge a sizeable premium to cover high risks such as hurricanes along the Gulf Coast during peak season. After Hurricane Katrina, reinsurance has become more difficult to find, we should all expect our base homeowner premium to be affected in the Gulf Coast area if the meteorologist are only semi-accurate on this years hurricane predictions.
Word to the wise, be careful about changing carriers in the midst of high exposure seasons.
CARS AND HIGH WATER
Monday July 17, 2006Flood insurance normally brings to mind coverage for homes and other property structures.
Summer storms in Texas however, can create street and highway flooding that will reek havoc on your personal transportation toy. Should you find yourself in high water remember, do not back up as this forces water up the tail pipe of the car into the engine. Secondly, exit the automobile as quickly and safely as possible. Your car is covered under the comprehensive portion of your Texas auto policy, you aren't.
USING PERSONAL AUTOS IN BUSINESS
Friday July 14, 2006There has always been a thin and wavy line determining whether Texas autos driven for business on a part time basis should be classed as commercial vehicles or personal vehicles.
Many factors come in to play here starting with how the vehicle is titled, for example if it is titled in the name of a business, it will be virtually impossible to classify it primarily for personal use. There are so many other issues here that involve different insurers underwriting guidelines, meaning one insurer's business classification rules may qualify as personal with another carrier, certainly call your agent to be very clear on this issue.
TYPES OF CARS
Friday July 14, 2006One of the most common questions regarding new car purchases is, the cost of the insurance.
On a standard automobile policy, meaning in this case, one with a premium written at or lower than the state benchmark, the premium will not be affected hardly at all by the type of car, but greatly by the cost of the car.
However be sure in case of exotic cars, that the carrier will cover it as some carriers do exclude certain exotic autos on standard policies.
DRIVING SOMEONE ELSE'S CAR
Thursday July 13, 2006Texas auto insurance rules extend coverage from your policy to a legal operator using your car.
The question is, what happens when you drive someone else's car, do you need to verify their coverage or will your policy pay for damages you cause while operating their car. In Texas the primary insurance follows the car, meaning the owner of the car is responsible for the liability insurance on that car and the damage it causes while being operated with legal permission. Be sure to confirm that the vehicle you borrow is insured. Your policy may provide secondary coverage, however this could be a coverage question depending on circumstances.
CORRECTLY CLASSIFIED
Thursday July 13, 2006We are all tempted to hasten thru the questions we are asked on applications and sometimes they are trivial and redundant, but when it comes to getting and maintaining the proper auto insurance rate, please be very methodically in answering the rating questions.
For example you would not want to indicate your vehicle is not driven to and from work if you do drive to and from work on rainy days as oppose to riding the bus. Give additional details on the quote forms and call the agent and make record of classification changes having to do with usage and location of vehicles. This not only protects you in the event of a claim but also in many cases can create a lower rate.
HARD QUESTIONS
Saturday July 8, 2006In reviewing your auto policy you will find one section of your policy that may bring some interesting discussing to the dinner table.
Do you really need the
Personal Injury Protection coverage shown on your auto policy? We're certainly not advising you to discontinue the coverage, we're simply raising the point that if you and your family are fully covered on a comprehensive major medical policy after evaluating cost and coverage this may be a area of saving.
YOUR AUTOMOBILE'S TERRITORY
Friday July 7, 2006In general terms one's territory would mean the location you reside at, or your common area of travel.
This is not the case in regard to your automobile insurance since your premium is strictly determined by the location your car is garaged at. This is known as it's rating territory. Most rating territories are based on zip codes. Realizing this, may save you money if you have a vehicle garaged in a area of lower exposed area such as a farm vehicle are a young driver going to school in a smaller town. Split rating your policy because of different rating territories can greatly affect your
auto insurance rate.
KEEPING YOUR AUTO RATES LOW
Thursday July 6, 2006Low cost auto insurance is a highly pursued commodity.
New tip, Texas auto insurers must now disclose the process used to arrive at you insurance financial score. Call your representative
and determine the components involved, stability factors, inquiries, open accounts and late pays to name a few. You may be able to improve your rate by simply correcting some minor credit issues.
TOWN CLASS RATING
Wednesday July 5, 2006No, this is not the average scholastic score of the town's population.
Town Class ratings are applied by insurance company's to your
homeowner policy's base premium. This rating may increase or decrease your rate as it is determined by your home's distance to the nearest fire department. It is important if you live in a newly developed subdivision, to verify if you have a new fire department in the area. The fire department official can give you the town class rating, you can then contact your agent and confirm if the correct town class is being used.
INSURANCE INSPECTIONS
Tuesday July 4, 2006Insurer reserve the right to evaluate the property they insure, prior to binding coverage and during the policy period.
Reasons for inspections may range from roof condition to types of pets. Knowing the condition of the home or rental property allows the carrier to determine if the property will withstand normal perils and if there are liability hazards, posing a risk to neighbors and other visitors.
Protect your
Texas home insurance by being aware of hazards and making necessary repairs.
GIVE ME A NEW ROOF
Monday July 3, 2006One very common misconception is, if hail damages one neighbor's roof, the house next door must have suffered damage as well.
Although this is true some of the time, there are times due to age and different types of roofs, homes side by side may encounter very different degrees of damage. In our opinion it is essential that a reputable professional roof contractor analyze the roof before making a claim. This will protect your
home insurance policy and allow you to decide how to initiate the repair.
BEFORE YOU SAY GOODBYE
Sunday July 2, 2006Before you cancel your policy in your prior state, confirm the grace period and termination date for residents moving out of state.
Being
new to Texas, take a reasonable about of time to become acquainted with your new surrounding if you are choosing a local agency.
TEXAS RULES
Saturday July 1, 2006New to Texas residents should be sure to confirm the following facts before and during the securing of new auto insurance.
Make certain the automobile ownership links with the new auto policy so you can prove insurance when you get your new Texas Drivers License. If the ownership of the auto and the insurance policy do not recognize you as a driver you could have problems proving liability coverage and obtaining Texas registration documents and driver license.
