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Surprising Things You May Not Know About Your Homeowners Insurance

Three lesser-known home insurance facts.

While most homeowners know that they are responsible for securing a home insurance policy, many do not know very much about this type of coverage.  Curious to learn more about your homeowners insurance in Plano, Texas?  Then here are three of the interesting things that you may not know about this policy.

1) Your insurer cannot cancel your policy without good reason.

If your home insurance policy has been active for more than 60 days, then your insurance provider cannot legally cancel it unless they have a legitimate reason.  Legitimate reasons for a cancelation include failure to pay insurance premiums, lying on the insurance application, and instances of fraud.  So long as you avoid these issues, your insurer cannot cancel your coverage suddenly.  Please keep in mind that your insurer can decide not to renew your policy.  Insurers must issue non-renewal notices 30 days in advance and offer a reason for the non-renewal.  Common reasons include the insurer no longer serving the region and your home no longer fitting your insurer’s guidelines.

2) Your mortgage lender can restrict the size of your deductible.

The deductible is the amount that you agree to pay towards an insurance claim before your insurance coverage kicks in.  Insurance deductibles and premiums have an inverse relationship, meaning that the higher your deductible, the lower your premiums will be.  Many homeowners attempt to increase their deductible s as a means of saving on their coverage.  However, mortgage lenders typically cap home insurance deductibles at $1,200.  This is because mortgage lenders have a stake in the property too, and they do not want to risk the homeowner being unable to access their insurance coverage because they set their deductible so high that they cannot afford to pay it.

3) Adding security features can lower your insurance premiums.

Many home insurance providers will offer discounts to homeowners who install additional safety and security measures on their property.  For instance, you may be able to save on your premiums for installing burglar alarms, smoke and carbon monoxide detectors, and water safety systems.  Insurers offer discounts for safety features because they see this as the homeowner taking steps to reduce their risk for fire, burglary, and other perils.

These are some of the surprising home insurance facts that you may not have known about.  Do you have more questions about your homeowners insurance in Plano, Texas?  If so, then contact the experts at Tri-Star Insurance/HUB International.  We are ready to assist you with all your coverage needs today.