Is It Necessary To Keep Home Insurance Coverage If Your Home Is Paid Off?

Every homeowner that finances is required to provide adequate home insurance coverage until their home is paid off. After your home is paid off, you may be wondering if you should continue to keep your home insurance coverage.

Protection

Your home is one of the most valuable assets most people will own in their lifetime. The average home today is worth over $100,000 and is filled with thousands more in furnishings and other personal items. If you neglect to carry home insurance to protect your home and its belongings against a covered event, then you stand to lose it all if there is a catastrophic event such as a fire. Old and new homes alike are susceptible to fires and other damage, which is why you should always maintain your homeowners’ insurance.

Adequate Coverage

When you purchase home insurance, you want to make sure that you are not overpaying to help you stick to your budget. One of the most effective ways to get the right insurance is to consult an experienced insurance agent. They can help you take inventory of your belongings, as well as correctly assess the value of your property to be included in the insurance policy. To contact an authorized insurance agent representing Austin, TX, The Policy Source is ready to answer your home insurance questions and address any concerns.

If you are looking for high-quality home insurance products in or around Austin, TX, The Policy Source is ready to assist you. From purchasing home insurance to submitting a claim, they are there to help you every step of the way.

 

 

Dealing With a Pest Infestation

A homeowners insurance policy is primarily intended to protect the structure and restore it after certain types of damage. That can include fire, weather, accidents, and loss of value from damage. Also, such policies include a set amount for restoring personal property inside the Austin, TX home as well. However, homeowners insurance policies and pest infestations present an odd situation. Some pest situations can affect the structure, such as termites, for example. On the other hand, while irritating and needing an immediate response, many other pest infestation types have nothing to do with the structure and more to do with the homeowner’s responsibility to keep the home clean.

First, the homeowner has an obligation to do something right away when a pest infestation is found, according to the Policy Source. That means eradication and calling in a service to get rid of the pests adequately, so they don’t cause further damage. This is not the insurance provider’s responsibility.

Second, there may be damage found once the pests are removed, and the area cleared out. In most cases, a policy won’t cover such expenses for repair. There are limited instances, though, where it could be involved. For example, if termites have damaged a load-bearing beam in the home’s frame, and it has caused secondary damage to the home, the secondary damage may be covered but not the beam replacement. A lot depends on the actual language of the policy and the circumstances of the pest infestation. 

The expert insurance staff at the Policy Source can help parse between different situations and the most likely types of pest problems in Austin, TX and the surrounding areas. If you’re worried about a potential pest issue in the general region affecting your home, work with our agents to craft the right protection for your home.

Call our office or visit us to have your questions answered and find the help you need when crafting a homeowners policy.

Homeowner Tax Deductions

If you’re a homeowner, it can pay off at tax time. We want homeowners in the Austin, TX area to take advantage of your tax deductions. Make sure you are taking all the home tax deductions you’re entitled to receive. Here are some homeowner related tax strategies and deductions that may help lower your year’s tax bill. 

  • One of the best deductions is your mortgage interest deduction. Even if your loan was for something other than your home, like college tuition, as long as your home secures the loan, you could deduct the mortgage interest.
  • Any property taxes paid are deductible.
  • Deduct the cost of PMI or FHA mortgage insurance premiums.
  • Use the Nonbusiness Energy Tax Credit for upgrading your home to be more energy-efficient.  Sample upgrades are a Biomass stove, heating and air conditioning systems, adding insulation, roofing of metal and asphalt, non-solar water heaters, adding energy efficient windows and doors.
  • Vacation home tax deductions can be tricky, but you may be able to deduct the mortgage interest and real estate taxes.
  • Prepaid interest, or points, paid for the initial mortgage are 100% deductible.  If you refinanced, you might be eligible for a portion of the tax deduction. 

Not all of the tax deductions are straightforward and it may pay to work with a professional to make sure you properly claim all deductions you’re entitled to each year. Keep records of expenses over the year to help you claim all deductions you’re eligible to claim.

The Policy Source

The Policy Source provides homeowner’s insurance coverage for the Austin, TX area. Like annual tax deductions, your home insurance may cover things you never thought about, and we want you to be informed.  Work with one of our agents to use your home policy to its full benefit.

Does Home Insurance Cover Damage From Break Ins?

When it comes to home insurance there are plenty of things that your policy might cover that you never thought of. Knowing what your policy covers is going to make a huge difference in how easily and quickly you select the policy that is right for you. For those in the Austin, TX area, the agents with The Policy Source can help you find the policy that works best for you.

Your home policy certainly does cover damage from break-ins. If you can properly document the break in and if you turn it in to the police, you can turn the report in on your home insurance for a claim. Often when someone breaks into a home they tend to destroy things like door frames in an attempt to enter the home, they may also damage windows, and often damage walls and other areas in the process of taking things.

Your home policy will cover the cost of repairs and will also help you to pay for the items that were stolen as well. Your home insurance policy does also cover contents of your home and you can make a claim about what was stolen to help you recover your items. Your home policy will require proof of break in and in some cases if you have an alarm or security system, the company will pay your home owner’s deductible if the alarm was armed when the break-in occurred. No matter, your home insurance does a great deal to make sure you are protected from top to bottom.

For those in the Austin, TX area, the agents with The Policy Source can help you find the policy that is going to work best for you and for your individual needs and requirements.  

Why do I need Living Expenses Coverage with my Home Insurance?

A home is frequently someone’s most valuable investment and deserves to be protected with home insurance. While most people understand that they need home insurance to cover the structure and value of the home, many people neglect important additions that they might need with their home insurance. For example, many people neglect to ask whether or not their home insurance policy covers living expenses. Some people might even wonder what living expenses coverage means. Some of the most important information regarding home insurance and living expenses coverage is below.

Home insurance is important because it provides financial support for people whose homes are damaged or lost for a wide variety of reasons; however, sometimes a home is damaged beyond repair. The home might not be safe to live in due to severe damage of total loss. In this scenario, the individual or family will be forced to live on the road as they search for a new place to go. The price of eating out and staying in a hotel room for an extended period time can cause the bills the pile up quickly. This will place a substantial amount of financial stress on a family. Therefore, people should ensure that their home insurance policy covers living expenses. This is an additional layer of coverage that will provide funds for families forced to stay in a hotel or an apartment for an extended period of time in the event that their home is damaged beyond the point of livability.

Everyone living in Austin, TX should ensure that their home insurance policy includes living expenses. People should contact an experienced insurance agent serving Austin, TX with any questions. The Policy Source will make sure that every family’s most valuable assets are protected.

Steps to buying your first home

Whether you are buying a home in Austin, TX or the surrounding areas The Policy Source is the place to go for all your insurance needs and even offer great advice. The Policy Sources even offers steps to buying your first home so you can avoid buying mistakes.

The first step is to research the real estate in the areas you are wanting to buy in. See how long the homes stay on the market in certain areas and check the housing trends. Then you should determine how much you can actually afford. Determine what your financial situation is and try not to choose a home that is more than three times their annual household income. Try to save for a down payment. Next, get pre-qualified and pre-approves for credit for a mortgage. This can be a tricky spot, just because a person gets approved for a certain amount does not mean they can really afford it, but that goes back to creating a budget. This step is important to see what your price range is before you start looking.

Then you can find the right real estate agent. You want one who is informed with the housing market and has knowledge of the home buying process. Once you and your realtor find a home you can make an offer. It is smart to check the plumbing, electrical, open windows and doors, traffic, and things that it is near. If these work for you then you can make an offer. Then you will need to get a home inspection to decide if anything needs to be fixed before closing. If things go well you can work with a mortgage banker to select the loan that is right for you.  

The lenders will set up the home to be appraised to make sure it is worth their investment and if so you can then coordinate the paperwork and close the sale. Don’t forget about insurance, so call The Policy Source in the Austin, TX area so we can get you the homeowner’s insurance coverage you need.   

3 Mistakes Homeowners Make When Purchasing Home Insurance

Home insurance in Austin, TX is a complex subject, but it is one in which you must understand to ensure you have the coverage you need for your home. Without understanding your home insurance policy, you could be placing your home and your family at risk. At the Policy Source, we’ve noticed many homeowners make similar mistakes when purchasing home insurance.   

Owners Purchase Too Little Home Insurance  

All too often, homeowners purchase the least expensive option for home insurance coverage in Austin, TX. For many homeowners, the least expensive policy will help them maintain their monthly budget. Although a cost-effective policy helps people maintain their budget, it may not help them cover their replacement costs completely if they experience a loss to their home. The best way to avoid this problem is by talking to your agent about your coverage.

Homeowners Choose High Deductibles for Home Insurance  

At the Policy Source, we’ve noticed a lot of clients choosing home insurance policies that have high deductibles. Of course, a home insurance policy with a high deductible will reduce monthly premiums, but if these homeowners don’t have the deductible in savings, just in case they experience a loss, then it places them at a disadvantage.  You can avoid this problem by choosing a deductible you can pay with ease.

Owners Fail to Understand the Home Insurance Policy  

Home insurance from provider to provider isn’t the same. In fact, many home insurance companies determine what they will cover, and it can be different from another provider. Homeowners shouldn’t assume they know exactly what is in their policy without taking the time to dissect their policy.  To avoid this problem, talk to your agent about the details of your policy.

At the Policy Source, we want to ensure you have the home insurance coverage you need to cover you in the event of a loss. If you are just purchasing a home or it’s time to renew your policy, then we encourage you to give us a call today. The longer you wait, the more you jeopardize your home and your family’s lifestyle.