Best Homeowners Insurance Agencies in Amarillo

Frequently Asked Questions

• Introduction

  Homeowners' insurance is a type of property insurance used by private property owners to protect their home and property from a range of risks and liabilities. It is also called home insurance.
  

  
  

  All homeowners' insurance policies cover the primary home on a property, meaning that most damage from weather, accidents, vandalism, and other events will be at least partially paid for by the insurance company. Many policies also include coverage for other structures, personal property, and some premises liability.

  
  

  It is not required by law that a homeowner purchases insurance for their property. However, if you have a mortgage, the lender will usually make purchasing a homeowners' policy a mandatory part of the loan process. Since the mortgage lender is essentially selling you the home, they require you to protect the investment.
  

• Does the age of your home affect the cost of homeowners' insurance in Amarillo?

  Yes, the age of your home can affect the cost of your homeowners' insurance. Older homes in Amarillo have higher insurance rates than newer ones. A one-year-old home, for example, may have an average annual insurance rate of $1,678, whereas a 35-year-old home may have an average rate of $2,611. This means that homeowners with older homes may have to pay up to $933 more in insurance each year.

• Are homeowners liable for trees on their property causing damage to their neighbor's structure in Amarillo?

  Homeowners are not liable for damage caused by a tree on their property that falls on a neighbor's home or structure due to circumstances beyond their control, such as weather events. However, if the tree damage is caused by the homeowner's negligence, such as failure to maintain the tree or improper trimming, they may be held liable. Homeowners should review their insurance policy to see if it covers negligence-related liability.

• What factors do insurance companies typically consider when determining homeowners' insurance rates in Amarillo?

  Insurance carriers in Amarillo calculate rates based on a variety of factors, including claims history, desired coverage amount, local crime rates, and weather-related risks such as hurricanes or tornadoes. Furthermore, home details such as construction type and square footage, roof age and condition, remodeling history, and proximity to fire stations or bodies of water such as coastlines may be taken into account.

• How long does additional living expense coverage last if your home in Amarillo is uninhabitable due to a covered loss?

  The typical duration in Amarillo for additional living expense coverage, which assists homeowners when their home is rendered uninhabitable due to a covered loss, is typically up to 24 months. This coverage provides financial assistance while the damage is being assessed and the home is being repaired or rebuilt, including temporary housing support and related expenses.

• What events or situations are typically excluded from homeowners' insurance in Amarillo?

  Situations and events such as earthquakes, floods, termite infestations, mold growth, sewer backup, and certain water damage causes are frequently excluded from Amarillo homeowners' insurance. Acts of war and nuclear accidents are also excluded. Because of the specialized nature of such risks, homeowners may require separate insurance policies to protect against them.

• What determines the price of homeowners insurance premium?

  The premium, or monthly cost, of your homeowners' insurance policy depends on several factors, including the value of your home and amount of coverage you choose. Your credit history and whether the property is in a higher risk area also play a role.