Straight Answers from the Front Porch
Plain answers to the questions Texans actually ask us — written from our porch in The Woodlands, in the same language we'd use if you were sitting on it. No scare tactics, no fine print without a translation. Pull up a chair.
What most people don't know about Texas Auto Insurance
Texas requirements for auto insurance VS Our recommendations for auto insurance?
Texas requires 30/60/25 liability limits. This means $30,000 for each person you injure, $60,000 total per accident, and $25,000 for their property. That's the legal floor, not a recommendation. One hospital stay or one wrecked truck can blow past those numbers fast. We usually recommend higher liability limits and adding uninsured/underinsured motorist coverage, because plenty of drivers on Texas roads are carrying the minimum or nothing at all.
What does "full coverage" actually mean?
Just because you have "full coverage" it does not mean you have all the coverage possible. It usually means liability (required by law) plus comprehensive (the non-crash stuff like hail, theft, the deer that came out of nowhere) and collision (crash damage). Depending what what liability limits and deductibles you choose there are different levels to full coverage. Each coverage type carries its own deductible that you choose, so two "full coverage" policies can protect your family very differently. We advise that you think through different scenarios of what you want to use your insurance for and pick the limits and deductibles that best suit you and your family.
Am I paying for coverages I don't need?
Sometimes people come to us with coverages on their policy that they would never use. Here are a few suggestions: Some insurance companies will mark Roadside service as a separate claim and you can us loose your claim free discounts. We recommend using Triple A or calling the towing service on the back of your Texas drivers license to make sure that you are not accidentally making another claim to raise your rates. Sometimes people have a spare car and if their car was in the shop they would use it to get around, but are still paying for rental car coverage. We advise that you go over each line item in your policy and make sure you know what you are paying for every renewal.
What most people don't know about Texas Home Insurance
Why doesn't my coverage amount match what I paid for my house?
When you buy your house, the price is evaluated by the location, land, and current market value. However, insurance does not take all of that into account when they come up with the amount to insure your house. They are only calculating the materials to rebuild the house and the cost of labor. Plus some carriers will place an inflation guard on the policy to make sure you have enough coverage. Sometimes this leads to a large difference in the value of the home from one insurance carrier to the next.
Replacement cost vs. actual cash value on my roof — what's the difference?
When your roof is insured at replacement cost, you simply pay your deductible and the insurance covers the rest of the cost of the roof. When your roof is insured with an actual cash value endorsement (some carriers call it roof payment schedule) the value of the roof depreciates each year(typically by 2-3 percent each year). Meaning if you have a 10 year old roof, first you will pay your deductible, then the insurance company will pay 70-80 percent of the remaining balance and you cover the rest of the cost. The only benefit to actual cash value coverage is that it lowers your home insurance premium.
Why do I need liability coverage on my home policy?
Texas is an at fault state. Meaning, anybody on your property, invited or not, that gets injured is legally allowed to sue the homeowners. Your liability coverage covers any legal fees or loss settlements in the event of a lawsuit. Liability coverage is very cheap compared to the overall premium, and that's why we always recommend the max coverage.