2 Questions for Fellow Texans? re: homeowners ins. and alarm companies (wood floors, renting)

[Texas4Good]

What insurance companies did you guys use for homeowners insurance?

Also, what alarm company did you guys go with? and what do you pay if you don't mind me asking? thanks!

[SkyeAnjel]

I have nationwide, I think it's around 1,000/yr. and I have counterforce alarm system for 21.00 per month, big mistake though, I'm stuck with a 3 year contract and my system came with the house so theres no reason to sign for 3 years...grrr..next time, will go with brinks,my friend swears by them..

[ayannaaaliyah]

I have Nationwide homeowners and I use Brinks for my alarm system.

[grifsmom]

I was shopping around and was going to go with Nationwide, but didn't because they wouldn't insure my house for what I believed to be the realistic replacement cost. The factor the agent used for cost per square foot to completely rebuild seemed wayyyyy low to me. I pay through the nose for USAA ($2500, then $300 for flood) but I'm adequately insured. I'm a stickler for these things since I'm in the insurance business and understand how their underwriters work, which, is of course not in your best interests. But if your agent tells you that for replacement cost he can rebuild a 2,000 sq foot house for $150K (this includes finishing it it out--which adds up if you want to replace the granite counters, actual wood and not 'engineered' molding, have solid wood floors, etc) you're undersinsured--most people are, actually. Your purchase price, current market value, and cost to replace are all different. Also keep in mind that for a type B policy the deductible is required to be 1% for wind/hail/storm claims. Be sure to read policies very carefully and question anything you don't understand--the recent judgments in Mississippi and Louisiana were for the insurance companies. Not understanding your policy and being underinsured could potentially add up to a devastating loss should the worst happen.

[mjewell]

I've got State Farm and Dana Long has been my agent for more than 10 years now, even back when I was renting. I've been told by friends who have shopped around more recently than me that it's the best coverage but not the cheapest. I pay $2400/year including flood (an optional $300) for $250,000 dwelling and $100,000 personal property.

[texasdreamin]

Originally Posted by grifsmom

I was shopping around and was going to go with Nationwide, but didn't because they wouldn't insure my house for what I believed to be the realistic replacement cost. The factor the agent used for cost per square foot to completely rebuild seemed wayyyyy low to me. I pay through the nose for USAA ($2500, then $300 for flood) but I'm adequately insured. I'm a stickler for these things since I'm in the insurance business and understand how their underwriters work, which, is of course not in your best interests. But if your agent tells you that for replacement cost he can rebuild a 2,000 sq foot house for $150K (this includes finishing it it out--which adds up if you want to replace the granite counters, actual wood and not 'engineered' molding, have solid wood floors, etc) you're undersinsured--most people are, actually. Your purchase price, current market value, and cost to replace are all different. Also keep in mind that for a type B policy the deductible is required to be 1% for wind/hail/storm claims. Be sure to read policies very carefully and question anything you don't understand--the recent judgments in Mississippi and Louisiana were for the insurance companies. Not understanding your policy and being underinsured could potentially add up to a devastating loss should the worst happen.

grifsmom, can you give an example of replacement cost vs market value. I thought I was underinsured. I called my State Farm insurance company and was told that I am insured at 106%. I have replacement cost. It shows that I would be covered at $234,000. The market value of my house is $650k. Does that coverage sound right? They are allowing 180k for personal item replacement.

[grifsmom]

Texasdreamin, hard to answer since it depends on what type of construction it is. Brick? How many square feet? My guess would be that brick, up to 2,500 square feet with mid-grade finishing, you could rebuild for that. You're probably more than good on personal property. I would ask my agent if we could go to 125%, just to be sure. The cost isn't going to be that much more.