Homeowner’s insurance comes in many different types to fit the needs of those living in Midland, TX. Buying the right kind of policy is crucial to your well-being and that of your family. If you’re unsure of what you need in a homeowner’s policy, Ledford Agency LLC will gladly guide you through the process.

Home Policies Have a Number Designation

Consumers will find eight basic types of home insurance policies, each with the letter HO, a dash, and the numbers 1 through 8. You’ll find this designation on your policy’s declaration page. Each refers to a specific type of coverage.

The following are the different types of policies you may encounter:

• HO-1, providing barebones coverage for only ten specific perils
• HO-2, known as the broad form, provides additional coverage, including dwelling coverage, personal liability, and loss of use
• HO-3, an open peril policy, is the most common type issued
• HO-4, renter’s insurance, for those renting houses and apartments
• HO-5, the highest level of coverage, involving actual replacement costs
• HO-6, for those living in a condo or co-op
• HO-7, similar to an HO-3 but applying to mobile homes
• HO-8, for homes more than 40 years old that may have higher replacement costs

Why Designations Matter

If you purchase the wrong type of policy, you may not receive essential coverage. The best bet is to buy coverage in the amount that reflects your total assets. Anything beyond that will increase your liability protection for accidental injury or property damage.

Don’t Select the Wrong Policy

You may be tempted to choose an incorrect type of policy because it may be cheaper than the one that is right for your needs. Instead of guessing, let Ledford Agency LLC, serving residents in Midland, TX and surrounding areas, help you choose the most appropriate policy to cover your home and its contents.

Just like with everything else, you want to find the right balance when it comes to buying insurance. You want to have enough protection to avoid disaster without paying extra for coverage you don’t need.

At Ledford Agency LLC, we help you find that balance when you insure your Midland, TX home. One of the ways you can make sure you have the right coverage is by following the 80/20 rule.

What Is the 80/20 Rule?

The 80/20 rule is an insurance industry standard. Most insurance companies use this standard, which basically assigns a minimum amount of coverage you need to get when insuring your home.

Under the 80/20 rule, you will need to insure your home for at least 80% of its replacement value in order to make claims. If your coverage is less than 80% of the replacement value, your insurance will only pay a proportionate amount of your claim.

Changes To Your Home’s Value Can Change the Amount of Insurance You Need

As the homeowner, you need to be aware that changes in your home’s value can affect the use of the 80/20 rule. For instance, making major upgrades to your home can significantly raise your home’s value, at which point you may need more insurance. Let your agent know right away when you make improvements to your home. Inflation can also cause your home’s value to increase.  

We Are Here To Help

You need to keep in mind that the 80/20 rule has no effect on your liability coverage. Also, there can be a large difference between the replacement value of your home and the market value. If you have any questions about your Midland, TX homeowners insurance, please feel free to call the Ledford Agency LLC today.

When homeowners have a home insurance policy, they gain a sense of security knowing that their property and possessions are protected. However, homeowners need to understand their responsibilities and duties to ensure the smooth operation of their insurance coverage in and around the Midland, TX area. 

Ensuring Property Safety and Maintenance

Homeowners are responsible for maintaining their property in a safe and well-maintained condition. This includes regular upkeep, addressing potential hazards, and making necessary repairs. 

Notifying the Insurance Provider

Homeowners must promptly notify their insurance provider of any changes that may impact their policy. This includes updates on renovations, additions, changes in occupancy, or the presence of specific risks (e.g., adding a swimming pool or renting out a portion of the property).

Taking Necessary Preventive Measures

Homeowners must take reasonable steps to mitigate loss and damage to their property. This may involve securing the property during an impending storm, promptly repairing minor damages to prevent further deterioration, or implementing safety measures like installing smoke detectors or security systems.

Filing Claims Properly

In case of a covered loss or damage, homeowners must promptly document and report the claim to their insurance provider. This includes gathering evidence, such as photographs or receipts, to support the claim and providing accurate information about the extent of the loss. Adhering to the claim reporting procedures specified by the insurance provider helps ensure a smooth and efficient claims process.

Engaging in the Claims Process

Homeowners must cooperate fully with the insurance company during the claims process. This involves providing requested documentation, responding to inquiries, and working with adjusters or investigators as needed. 

How Ledford Agency LLC Can Help You

At Ledford Agency LLC, we can answer all your questions concerning boat insurance coverage. We assist the Midland, TX region. Contact us today. 

Virtually all mortgage companies require homeowners to have some level of protection through home insurance. These policies typically cover damage and destruction to a home’s interior or exterior, theft, and personal liability. This type of insurance coverage can actually save you hundreds of thousands of dollars in the event of a natural disaster in the Midland, TX area.

When shopping for a policy, there are three vital things that you need to know:

What Items and Events Are Covered

Generally speaking, should your home face a disaster such as a fire, hurricane, lightning, or another natural event, your insurance company will compensate you for repairs. You also need to be aware of how you will be compensated. For instance, you may be paid the cash value of your items or the cost to replace those items.

What Things Aren’t Covered

Though there are many different types of damages covered by most homeowner’s insurance policies, some damages such as those caused by earthquakes and floods are generally not covered. If you live in an area where coverage for these events is needed, you can supplement your policy with other types of insurance.

How Rates Are Determined

As with other types of insurance, rates are influenced by associated risk factors. Each provider has their own unique formula used to assess risk, further varying the rates you may be quoted. The type of coverage you choose, the area your home is in, and your claims history are just a few of the most common factors used.

Get the Coverage You Need From the Ledford Agency LLC

If you’re in the Midland, TX area and need a bit of help determining what type of coverage is right for you, give the team at the Ledford Agency LLC a call today! We can’t wait to speak to you.