
Local insurance agents answer questions about trends and offer tips to homebuyers and sellers considering buying or selling a home in or around The Woodlands.
Aaron England Pinnacle Point Insurance
What does homeowners insurance usually cover? What is not covered?
The coverage provided by your homeowners insurance can vary significantly depending on the type of policy form you have. Most policy forms will provide you with coverage for damage caused by claims you’d usually think of, such as fire, lightning and wind/hail. Damage caused by rising water—i.e. flooding—is not currently included within any homeowners policy form. Your home just may not be in a 100-year flood zone—which is when lenders require you to purchase a policy to qualify for the loan. Anyone’s home can flood at any time, which is why we always recommend flood insurance whether your home is in a 100-year flood zone or not.
Does home insurance differ between older and newer homes and if so, in what way?
Homeowners insurance coverage typically won’t differ much between older and newer homes. That said, some do have limitations on the amount of coverage available for sudden and accidental water damage. Rates, on the other hand, can be significantly higher on an older home versus a newer one. All insurance policies include what is often referred to as an age of dwelling discount that slowly goes away until it becomes a surcharge. An older home typically presents more of a possibility for loss than a newer home does which is why home insurance works this way. That’s why homeowners insurance for a newer home can be hundreds of dollars less than older homes.
A basic home insurance policy, which is called an HO-1, covers homes and possessions that can be destroyed or damaged by the following things:
