Katy homeowners’ insurance policies fall into four general categories – HO-A, HO-B, HO-C, and approved alternative policies. The Office of Public Insurance regulates the three HO policies.
HO policies are written the same way, regardless of which insurance company issues them. However, identically-written policies can vary widely in price. Approved Alternative policies offer specialized levels of coverage, but they must be approved by the State Commissioner of Insurance in writing before a company may sell them.
Most Katy homeowners’ insurance coverage is actually a blend of five types of coverage:
Dwelling coverage provides coverage in case of damage to a residence. Personal property coverage will pay for items that are stolen or destroyed.
Liability coverage protects the policyholder in case they are found responsible for injury to another person.
Loss of use and medical payment coverage pay out sums of money if the property cannot be lived in or if the policyholder is injured and requires medical care.
The most basic Katy homeowners’ insurance policies are HO-A policies. They offer very low coverage limits for a house and its contents. Most insured homeowners in Katy have HO-B policies, which include coverage for most types of damage. In general, they offer the best value for your money. HO-C policies are the most expensive, but they offer the highest payout on claims.
B and C policies offer what is known as “replacement cost” coverage. This kind of coverage means that the insurance policy will pay the cost to rebuild a destroyed home at the current market price, up to an upper limit on the policy. HO-A policies provide only “actual cash value” coverage, which means that policyholders only receive the replacement value of a home, minus depreciation. This means that older homes usually get very small values.
In Katy, homeowners’ insurance policies do not include coverage for floods or insurance. Instead, you will have to purchase this type of coverage separately. Because Katy sees both hurricanes and flooding on a regular basis, it is a good idea to purchase this kind of coverage.
If you are looking to get a deal on homeowners’ insurance coverage, or to add flood damage and hurricane coverage call us Toll free at 877-952-1010 today and learn how we can help you protect your investment!.