Register Real Estate Advisors

When you purchase a new home or a resale home, you will want to make sure your home has sufficient insurance coverage.  You want a homeowner’s insurance policy that will cover your new house and all of your family’s items inside.  To determine how much insurance you need, figure our how much it would cost you to rebuild your house today on your existing lot.  Your personal property coverage should then be anywhere from 55-75% of that amount, according to most insurance salesman.

If you live in Texas, you know there are natural disasters that take place.  Along the coast, we have to be prepared for hurricanes.  In other areas, there are wildfires.  Damage caused by natural disasters such as flooding, earthquakes and hurricanes are not covered by regular homeowner’s policies, so depending on where you live, you may want to consider additional coverage.  Your insurance agent can help you figure out the right amount of coverage and suggest upgrades or additional policies that would be appropriate for your specific situation.  In the Spring and Woodlands area I recommend LaVon da Fletcher at State Farm Insurance.  She and her team are experts at helping homeowners figure out how much insurance they need.

AUSTIN (Dallas Morning News) – State Farm Insurance has filed for higher rates and a new system for
calculating deductibles for Texas homeowners.

Proposed insurance rates are an average of 10 percent higher than current rates. However, State Farm officials said that several
discounts will be boosted to hold the actual premium hike to 2 percent in the Dallas area and 1.4 percent statewide.

Meanwhile, the new system of deductibles would eliminate dollar limits. The deductible would be 1 percent of the home’s insured value or
an optional higher percentage ranging up to 5 percent.

For example, policyholders who now have a $500 or $1,000 deductible would be subject to a 1 percent deductible on property damage or losses. That means the
deductible would jump to $2,000 for a home insured for $200,000.

State Farm’s higher rates and deductibles would take effect Oct. 15 for new customers and Dec. 1 for existing policyholders. The company currently
insures about 1.2 million Texas homeowners.

The article below was written by LaVonda M. Fletcher, State Farm® Agent, Spring, Texas.  Her office is in the same shopping center with RREA and we share some mutual clients.  I trust LaVonda and her staff to insure RREA and I highly recommend you get a quote from her next time you are shopping for home, auto, life, or health insurance.

Water damage can occur almost anywhere in your house.  Water-using
appliances and fixtures, such as refrigerators with icemakers, dishwashers,
washing machines, toilets and water heaters, are common locations of leaks.

Unfortunately, slow leaks at these appliances and fixtures are often times impossible to see until it is too
late.  If it goes undetected, a slow leak can lead to rotting house framing and subfloors, and can be a precursor to a
catastrophic leak that can release several gallons of water per minute, causing
extensive water damage.  A water leak detection system may help prevent these problems.

There are two types of water leak detection systems:  passive and active.

Passive leak detection systems are intended to alert you of a leak.  They generally sound an audible
alarm tone and some may also feature a flashing light.  Passive systems are frequently
battery-operated, stand-alone units.  They are inexpensive and easy to install.  Some simply sit on the floor while others may be wall mounted.  A moisture sensor is located on the floor and activates the alarm when it becomes wet.  Passive leak detection systems are especially useful in locations where
it is easy for someone to hear the alarm, such as near refrigerators, dishwashers, or toilets.

Active leak detection systems usually generate some type of alarm,
but also perform a function that will stop the water flow.  They feature a shut-off valve and some means
to determine that a leak is occurring.   Most devices use moisture sensors to detect a leak.  Other systems use a flow sensor and a timer
to determine that something is leaking and the water needs to be turned off.
An individual appliance system, which costs $50 to $150, detects a leak from a specific appliance, such a
washing machine or water heater and shuts off the water supply to that
appliance only.  You can often install these systems without the use of special tools.
A whole house system, which costs $500 to $1,500, sends an alarm when a
leak is detected and automatically shuts off the main water service.  Some models can also be integrated with a
local or central station security system.

Contact a local contractor,
building official or hardware store for more information about water leak
detection systems.  If you would like
more information about how you can prevent water losses in your home, please
contact an expert, visit statefarm.com, or call LaVonda Fletcher at (281) 350-4800
or stop by her State Farm office located at 1614 Louetta Road, Spring, TX  77388.

With all of the wild fires happening in Texas, many people are filing claims on their homeowner’s insurance.  If you find yourself in that situation, here are some things to keep in mind.

1.  Contact your homeowner’s insurance company as soon as possible after the damage happens.

2.  Take photographs of your loss and make a list of all damages and repairs needed.

3.  If you need to stay at a hotel, keep your receipts so you can get reimbursed.  Some insurance companies will reimburse restaurant expenses, too.

4. Make temporary repairs as needed to prevent further damages.  You will also want to keep those receipts to turn in for reimbursement.

These are just a few tips if you need to file a homeowner’s claim.  If you need an agent to help you find a home or rental property please call us at 281.288.3500 – we have agents standing by ready to help you with all of your real estate needs!

The article below was written by LaVonda M. Fletcher, State Farm® Agent, Spring, Texas.  Her office is in the same shopping center with RREA and we share some mutual clients.  I trust LaVonda and her staff to insure RREA and I highly recommend you get a quote from her next time you are shopping for home, auto, life, or health insurance.  Now that Hurricane Season is here, I incourage everyone to get organized in case of evacuation!
– Shannon

If you were incapacitated, would anyone be able to find your important records and take care of your family’s financial or business matters?  Having
important papers organized and accessible in advance can be very important in an emergency or crisis situation.
Consider the following for organizing your important records.

Location: Options for storage might include a home safe, fire-security box or off-site location such as a safety deposit box.  The storage
container should be securable and fire-resistant.  Shoe boxes or cardboard boxes in the closet or under the bed are not appropriate.

Who knows? Does someone in addition to your spouse know where these papers are kept?  Consider making a list of such papers and
records, and on the list state where these documents can be found.  Then advise a trusted third party—an attorney, CPA, relative, or family friend—where this list is kept.  The general idea is that someone not living in your residence knows about this list and how to access it.  This decision requires a certain comfort
level, and you alone are able to make that determination.

Which papers? Regardless of who knows what, organized records are always a plus.  The following items might be part of your
“important documents” list:

• Safety deposit box key;
• Life insurance policies;
• Deeds, contracts, leases, titles, mortgage(s), loan notes;
• Banking, savings, investment and retirement account(s) records;
• Will;
• Burial arrangements;
• All other insurance policies (health, auto, home, etc.);
• Birth certificates.

Beyond however you decide to store your personal records, and whatever you decide to include, one fact is clear.  If important legal, business and personal documents are organized and accessible, the handling of a crisis situation is made much easier.

Do you know about C.L.U.E. Reports?  If you are purchasing a home, you should be familiar with the term.  A C.L.U.E. Report is a Comprehensive Loss Underwriting Exchange Report that provides details on insurance claims filed in the past five years.  These details may include wind, water, or mold damage.  They are property specific, not people specific, and impact the cost of insuring the home. 

How does this impact buying a home?  If you want to purchase a home and it has had damage in the past five years, you insurance company will know about it before they insure the home.  They may choose not to insure the home for reasons listed above.  So it is possible you could find the home you want and not be able to insure it, even though you have never had an insurance claim on a property.  Not likely to happen, but it could.  Always check into an insurance policy before you purchase a home to make sure it is insurable.

This is a helpful video about homeowner’s insurance. Make sure you compare prices every year to ensure you’re not overpaying for insurance. If you are new in town and need a referral, please call me. A long time Spring resident, I know who to call!

1. Raise your deductible – if you can afford to pay more toward a loss that occurs, your premiums will be lower.
2. Buy your homeowners and auto policies from the same company – you’ll usually qualify for a discount. But make sure that the savings really yields the lowest price.
3. Make your home less susceptible to damage – keep roofs and drains in good repair. Retrofir your house to prtect against natural disasters common to your area.
4. Keep your home safer – install smoke detectors, burglar alarms, and dead-bolt locks. All of these will usually qualify for a discount.
5. Be sure you insure your house for the correct amount – remember, you’re covering replacement, not market value.
6. Ask about other discounts – for example, retirees who are home more than working people may qualify for a discount on theft insurance.
7. Stay with the same insurer – especially in today’s tight insurance market, your current vendor is more likely to give you a good price.
8. See if you belong to any groups – associations, alumni groups – that offer lower insurance rates.
9. Review your policy limits and the value of your home and possessions annually – some items depreciate and may not need as much coverage.
10. See if there’s a government-backed insurance plan – in some high-risk areas, such as the coasts, federal or state governments may back plans to lower rates. Ask your agent.

Reprinted from Realtor Magazine Online by permission of the National Association of Realtors, Copyright 2005, All rights reserved.

1.  Look for exclusions to coverage.  For example, most insurance policies do not cover flood or earthquake damage as a standard item.  These coverages must be bought separately.

2.  Look for dollar limitations on claims.  Even if you are covered for a risk, there may be a limit on how much the insurer will pay.  For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.

3.  Understand replacement cost.  If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient.  This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.

4.  Understand actual cash value.  If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation.  This is called actual cash value.

5.  Understand liability.  Generally your homeowners insurance covers you for accidents that happen to other people on your proprety, including medical care, court costs, and awards by the court.  However, there is usually an upper limit to the amount of coverage provided.  Be sure that it’s sufficient if you have significant assets. 

This information was reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, copyright 2005, all rights reserved.

The Texas Homeowners Policy affords no protection from flooding.  Only homeowners who have National Flood Insurance may recover from damages caused by rising waters.  This Federally subsidized insurance is available under specific conditions in qulaifying communities.  This is quoted from Judon Fambrough’s article published in The Real Estate Center Journal October 2002.  He is an attorney, a member of the State Bar of Texas, and Senior Lecturer with The Real Estate Center at Texas A&M University.  To read the entire article as a pdf document please follow the link below.  It’s a great article about Flood Insurance for Homeowners.    

http://recenter.tamu.edu/pdf/949.pdf