Homeowners insurance - a quick and dirty summary of how it is done in Texas?

[ROckjaw]

I figure I will pay about $3600/yr with HO, Umbrella liability and for riders to cover the nanny and valuables that need separate coverage

Compare that the $1750/yr I paid for the same coverage in Ohio, Indiana, North Carolina, Georgia and Minnesota, for full replacement coverage and contents, under the same circumstances....

Each of those areas noted above had risks for hail, tornado, fall out from hurricanes, ice storms, etc, so I still can't see where the additional costs come from, other than the state insurance commission is not a strong advocate for the citizens of this state....

It is what it is I guess

[loves2read]

the fact is that IF my 25 yr old home (2600 sq ft, 3/2.5/2) home in a nice neighborhood in Bedford burned to the ground AND I rebuilt it with basically the same sq ft and design I would price the house out of the market so that I could not sell it for the reconstruction cost...

I know that insurance would supposedly cover the cost to rebuild but still--try selling a home that is probably priced 50% or so above what homes in any neighborhood sell for...

Part of what we are paying for when we are made to pay steeply increased premiums is the failure of insurance companies to meet their projected returns on their invested funds--
the monies they invest in stock market and other venues that are supposed to earn them enough money to cover factors like high damage claims that the policies premiums fail to cover...and they do this with monies from their polcies--they don't just stick it in a bank account and let it sit there...

people forget that some of the largest investors on Wall St are insurance companies--
when the market sank like it did in 2008 unless insurance companies were extremely smart--they lost money just like everyone else--
and with no margin for error in investments any more (there are not SAFE 4% returns) more companies are driven to make riskier investments
if they don't pan out then insurance companies have to make up the difference on the backs of people they are selling policies to...since they are the ones that will be filing claims...

I think this is one area that most people don't take into account when they think about how ins companies operate--
I think all of them operate investments with at least a portion of the money from policy holders for any type of policy--
car insurance/home/life/annuity

[getmeoutofhere]

Out of curiosity (and I bet I know the answer), you aren't eligible for USAA, are you?

[synchronicity]

So, let's say, theoretically, one were to purchase a 450K house in Colleyville with a pool. Any idea approximately what the homeowner's insurance costs would be, assuming the normal caveats that it depends on deductibles and whatnot? Approximate ranges are fine.

[nsumner]

I have no idea the formula insurance companies use to compute their premium. However, I have 2 closings next week with one client who got a binder from Geico for $750 on a 230K home and another one for 550K with a pool and a high liability coverage with Germainia for $1800. Both have a 1% deductible.

Naima

[escanlan]

Originally Posted by synchronicity

So, let's say, theoretically, one were to purchase a 450K house in Colleyville with a pool. Any idea approximately what the homeowner's insurance costs would be, assuming the normal caveats that it depends on deductibles and whatnot? Approximate ranges are fine.

You can obtain approximate prices at the TDI WEB site. They have a link to a function that will calculate it for you, and allow you to compare the policies and rates between various insurance providers. These are the rates for "Admitted" carriers here in Texas.

[BstYet2Be]

Originally Posted by escanlan

You can obtain approximate prices at the TDI WEB site. They have a link to a function that will calculate it for you, and allow you to compare the policies and rates between various insurance providers. These are the rates for "Admitted" carriers here in Texas.

Here is the Texas HelpInsure TDI site mentioned by escanlan, where you can compare sample insurance rates and policy provisions for both home and autos.

[loves2read]

I have read other positive posts about Germania--which I don't personally know anything about--and had never heard of until the last year or so

[Pete53FR]

Texas went from low insurance rates and good coverage until the Republicans took over. With our high rates guess how they pay claims.

I have had good luck with Safeco and Travelers at least they are better with customers. If you can get USAA they are cheap but hard to get your claims taken care of without a lot of fighting.

Car Insurance is even worse

[pinipig523]

So car insurance is also bad? Is this all a recent change within these past few years?