Texas homeowners insurance rates are going through the roof

Houston, TX – Homeowners insurance rates in Texas continued to increase in the fourth quarter of 2022 after state regulators approved four of the top five most impactful rate hikes during the period, according to an S&P Global Market Intelligence analysis. The approved increase requests are expected to boost industry-wide premiums by $425.5 million, the largest projected increase for any state for the quarter. There’s more bad news for Texas homeowners. Knowledgeable Houston home insurance claim lawyers warn people to read their policies carefully as they may discover they are underinsured. When the next storm hits the Lone Star State and damages your house, you may have a very nasty surprise. You thought you were covered, but the insurance adjuster may offer you only a fraction of the money you need to repair your house.

Actual cash-value Vs. Replacement value

If these two terms don’t ring any bells you must have a look at your policy right away. 

Replacement value means that the insurance company will cover the cost of repairing or replacing a damaged insured asset. For instance, if your laptop was damaged by the rain pouring through the torn roof, your insurer will cover the cost of getting a new one with similar characteristics. 

Actual cash-value means that the insurance company will take depreciation into account. If your laptop was five-year-old, the insurance adjuster will calculate what it would be worth today – how much money you’d get if you tried to sell it – and that’s how much money you’ll get. 

The same principle applies to all insured assets. 

What type of insurance coverage do you have?

Knowledgeable Texas home insurance claim lawyers say that in recent years more and more local insurers have been pushing clients into getting actual cash-value policies and this impacts sensitive issues, such as roof repairs, a major problem in a storm-prone state. 

Actual cash-value policies have lower premiums which makes them more attractive. Insurance guys use this to convince people to buy such policies while glossing over the fact that you may get very little money when you make a claim and they take depreciation into account.

The storm season is just a few months away, so the smart thing to do would be to examine your policy carefully. You should shop around for a replacement value policy while there’s still time.

What to do if a storm damages your home

There is no time to waste if a storm sweeps through your town.

Report claims immediately – all your neighbors will have claims to make so you should try to be first in line

Document all damage – take photos or videos of the damage inside and outside your house. You should also capture the destruction in the neighborhood as this will strengthen your claim.

Save receipts – this refers to immediate storm-related expenses, but also to the receipts for items that were damaged or destroyed and you need to replace. 

Be there for the inspection – make sure to take the day off for the insurance adjuster visit. You need to be there to show them all the damage the storm caused and see to it that they include everything in their report.

If you have problems getting a fair settlement from your insurer, reach out to a trustworthy insurance claim attorney at McClenny, Moseley & Associates, PLLC in Houston. They’ll help get the money you need to fix your house.

Contact info:

McClenny, Moseley & Associates, PLLC

1415 Louisiana St., Suite 2900

Houston, Texas 77002

Toll-Free: 844 662 7552