Is There Such a Thing As Liability Home Insurance?

Home insurance is something that we all have to have on our homes if we have a mortgage or other types of loans out against the value of the home. This means that home insurance also comes in a wide range of sizes and a wide range of policy types that fit each home. For those that live in the San Antonio, TX area, the agents with Versatile Insurance Planners can help you find your perfect home insurance policy.

There are virtually thousands of different types of home insurance policies to choose from. This means that there are also thousands of different coverage types and different levels of coverage. There is no such thing as a liability only policy when it comes to home insurance. There is, however, a base amount of insurance that a home must be insured for. This base number is factored based on the amount of the loan that you have out on the house. This means if you have a $200,000 loan on the home, you have to have at least $200,000 home insurance.

Though you only have to have the home covered for the amount of your loan, it is always best to have your home covered for the value of the house rather than just the amount of the loan. If your home is destroyed and you only have it insured for the amount of the loan, you are going to have no money to buy another home or rebuild. It is always best to make sure you have your home assessed and covered for its full value and for the value of the contents of the house as well to make sure you can both rebuild or buy another home, as well as purchase the contents of your home again.

For those that live in the San Antonio, TX area, the agents with Versatile Insurance Planners can help.
 

When Is it Time to Cancel Home Insurance?

As a diligent San Antonio, TX, homeowner, you’ve always had a great insurance plan. Even so, there comes a time when you might need to cancel a policy. Versatile Insurance Planners has made a guide for dealing with the most common reasons to cancel a policy.

You Need a New Deal

Even if you aren’t changing homes, there are compelling reasons to cancel a policy. If your current arrangement is too expensive, lacks coverage you want or you simply haven’t had a good relationship with the company, it makes sense to shop around. If and when you find yourself in this situation, be sure that you have the new policy ready to go before you cancel the old one. It’s better to have an overlap between the plans than a gap in coverage.

Refinancing

Updating or making changes to your mortgage does not automatically necessitate a change to your insurance policy. But, there are situations where it could be an issue. The terms of the new loan might require specific coverage that you are currently lacking. When this happens, you can usually contact your provider and have the necessary changes made without much hassle. If, however, you do need to cancel an old policy, follow the golden rule and don’t let the old plan end until the new one is confirmed to begin. Many people run into trouble when final dates get changed at the last second.

Moving

This is the most common reason to cancel a policy. If you’re changing homes, you probably won’t be able to transfer the old plan to the new place. This is because homes tend to vary wildly in value and coverage needs. That said, you don’t always want to cancel the old plan as soon as the new one starts. What is more important here is to wait until you no longer have an ownership stake in the old home. For many people, this means insuring an empty house while you wait for it to sell. If that is the case, talk to your insurance agent. They may offer unique coverage options that are better suited for an empty home.

If you have any doubts about the best way to proceed, contact your Versatile Insurance Planners agent. They can help guide you through coverage for your San Antonio, TX, home or even your future home to be.