Cheap Home Insurance

Looking for Cheap Home Insurance? Well, if the price sounds too good to believe, here are a few red  flags when making a buying decision.
1. If you are offered The Texas Fair Plan, be warned. This is a state funded bare bones policy, that usually doesn't include coverage for falling objects and sudden discharge of water, to name some. To qualify for the policy, you must have been denied coverage by three other companies first. Sure, the price might be good, but you are sacrificing coverage. And if this type of home policy isn't being explained to you by the Agent, beware!
2. The Dwelling Reconstruction coverage is not only to rebuild or repair your home at the current cost of labor and materials, not including discounts a builder might get, but also the cost to remove debris, including the slab and driveway.
3. Often times the lender will request that you purchase a home policy with dwelling coverage that is equal to or more than the loan. However, the policy only covers the cost to rebuild or repair and it's very possible that cost will not be enough to cover the loan. The bank would never be paid directly from the insurance company to pay off the loan. Plus, the land will always be there and is often the most expensive part of the home purchase. So, discuss this issue with your lender.

For more information about David Lorms, visit www.lormsinsuranceservices.com