Hi, I’m Jeff Shropshire with Shropshire Insurance of Texas, and welcome back to our Personal Lines Quick Facts series!
Today, we’re diving into one of the most important coverages you’ll ever have—your homeowner’s insurance policy, specifically the property insurance portion.
If you’re shopping for a new homeowner’s policy or comparing quotes, here are a few key things to keep in mind to make sure your home is properly protected.
Replacement Cost vs. Actual Cash Value
When reviewing your homeowner’s quote, check the valuation of your home. With rising inflation, replacement costs may seem high—but they’re based on the current cost to rebuild your home using similar materials and construction quality.
Always choose replacement cost coverage rather than actual cash value, which factors in depreciation and could leave you underinsured after a total loss.
Policy Forms: HO3 or Better
Ask your agent to confirm that your policy form is an HO3 or higher. These forms offer the broadest protection for most perils. Anything below HO3 provides more limited coverage—often cheaper, but with significant restrictions.
Foundation and Water Coverage
Not all policies automatically include foundation coverage or water damage coverage. Foundation coverage usually applies to tearing out and repairing plumbing leaks beneath your slab—not to natural settling or shifting.
Also verify that you have both water damage coverage (for burst pipes, etc.) and water or sewer backup coverage, which protects against overflow from drains or toilets. These are often added by endorsement.
Deductibles and Roof Endorsements
Your homeowner’s policy likely includes two deductibles—one for wind and hail, and one for all other perils. In areas like Lubbock, 1% to 2% wind/hail deductibles are common.
Be aware of roof settlement schedules or actual cash value roof endorsements—these can lower your premium but also reduce your claim payout, especially if your roof is older.
Additional Optional Coverages
Ask your agent about valuable add-ons such as:
Buried utilities coverage – protects against damage to underground lines.
Identity theft protection – covers expenses to restore your credit after ID theft.
Equipment breakdown coverage – helps cover repairs to systems like your A/C unit.
As you can see, homeowners insurance has become increasingly complex, but the right policy can make all the difference when the unexpected happens.
At Shropshire Insurance of Texas, we’re here to help you review your current policy, answer your questions, and find coverage that truly fits your family’s needs.
📞 Call us today at (806) 763-7311 or visit https://shropshireinsurance.com
to request a personalized quote.
