You’ve spent months looking at various houses for sale in the Lone Star State. Finally, you find the one that meets most of your criteria. It’s the one place you can see yourself living in for a long time and even where you could raise a family. This is a big step that comes with a lot of responsibility, but at the same time, it’s an exciting new venture.
Before you can close on the house, you must purchase homeowner’s insurance in Texas. Otherwise, no lender will loan you the money needed to buy it. This type of insurance serves as protection for both you and the lending institution. The policy covers the lender’s asset, and it gives you peace of mind that if something happens to the residence, you can have repairs done or the entire house rebuilt.
When to Get Homeowners Insurance in Texas
So, when’s the best time to purchase homeowner’s insurance? The answer depends on whether you’re buying a house or renewing an existing policy. Okay, you know you must have this kind of insurance before you can officially buy the home you fell in love with. However, you’ll need to maintain the insurance for the entire time you own the property.
Buying a House
The bottom line is that if you’re buying a house, you’ll want to start looking at various policies several weeks to months out. That way, you can compare several companies to see what they offer and what they charge for premiums. Then, as soon as the home seller accepts your bid, meaning you know the actual selling price, you’d contact an agent with a preferred insurance company.
Renewing an Existing Policy
As for renewing your homeowner’s insurance in Texas, as soon as you receive a renewal notice from the company that currently holds your policy, you need to take action. More than likely, you’ll receive the notice in the mail 30 to 45 days before the policy expires.
Most renewals contain a lot of valuable information, including the cost of future rates. Sometimes, these increase, and other times, they don’t. So, rather than rush to read the details in the renewal notice, go over everything line by line.
If you see a big jump in premiums or the amount of coverage, or you notice new inclusions or exclusions, talk to your agent. That’ll give them the chance to clarify any confusion and possibly, bring things in line with what you want and need.
Even if you like everything about the company, the agent, and the policy you have, the world of insurance continually changes. In just a year, coverage and premiums can change dramatically. So, if there’s nothing your agent can do to improve the policy, it’s time to start comparing what other companies have to offer.
When it comes to renewing homeowner’s insurance in Texas, give yourself ample time to shop around. That way, you’ll enjoy some specific benefits. For one thing, you’ll get the most recent copy of the declarations page. If you haven’t been happy with the insurer you have, this allows you to make a clean break. By shopping before the renewal date, you might also come across several insurance companies that can provide you with discounts that you might’ve otherwise missed out on.
Shop When You Want
When buying a house, there’s only one time to shop for homeowner’s insurance in Texas after you have the purchase price locked in and before closing. As for renewing a policy, remember that you don’t have to wait until it’s close to the time the policy expires to start looking elsewhere.
Usually, once you’ve had this kind of policy with an insurer for three to four months, you wouldn’t have to worry about getting penalized. That means you have free reign to start comparing policies and premiums associated with different companies whenever you want.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.