Category: Home Insurance

One of the most common insurance areas to be overlooked by homeowners is the sewer line. With homeownership, most owners are concerned with the home itself, which makes sense. However, other aspects of homeownership are less visible and buried deep beneath the surface. We’re talking about the sewer line, which can cause future trouble. That’s why you should buy a sewer line addendum through your insurance representative at Ledford Agency LLC, serving Midland, TX.

What is a Sewer Line?

The sewer line is the pipe that carries wastewater from your home to the municipal sewer system or a septic tank. It serves as the main exit route for all the waste from your plumbing fixtures, including toilets, sinks, showers, and appliances like dishwashers and washing machines. For most homeowners, the municipal sewer system starts at the property line on the street. From there to the actual house is the sewer line. Many homeowners don’t realize it, but the sewer line is the homeowner’s responsibility.

Where is it, Exactly?

The sewer line is buried several feet below the ground and exits the home through the foundation, sloping downwards to ensure gravity helps the wastewater flow away from the house. The exact location and depth of the sewer line vary based on the layout of the home, the type of foundation, local building codes, and the geography of the area.

Adding a Sewer Line Addendum

Adding a sewer line addendum to your home insurance policy is simple and affordable, especially compared to repairing or replacing this line. Talk to your insurance representative at Ledford Agency LLC, serving Midland, TX, to learn more.

We are here for all your home insurance needs, from the sewer line addendum to everything else. Contact us today to discuss your home insurance policy!

Understanding why floods are not covered in standard home insurance policies requires examining the nature of flood risks and the insurance industry’s approach to managing them. Home insurance typically protects against various perils, but floods around Midland, TX present unique challenges that standard policies do not address.

The High Cost of Flood Damage

Floods can cause extensive and costly damage to homes and properties. Unlike isolated incidents such as fires or theft, floods often impact large areas simultaneously, leading to a high volume of claims in a short period. The costs associated with repairing flood damage, including structural repairs, replacing personal belongings, and addressing mold and mildew, can be astronomical. Insuring against such widespread and severe damage would require significantly higher premiums, making standard home insurance unaffordable for many homeowners.

Catastrophic Risk Management

Insurance companies manage risk by spreading potential losses across many policyholders. However, floods represent a catastrophic risk that can overwhelm this system. When a flood occurs, it typically affects many policyholders in the same region at once. This concentration of risk makes it difficult for insurers to pool and diversify the risk effectively. As a result, insurers exclude floods from standard policies to avoid the potential financial instability that could arise from covering such extensive and simultaneous losses.

Availability of Specialized Flood Insurance

In the United States, the National Flood Insurance Program (NFIP), managed by the Federal Emergency Management Agency (FEMA), offers flood insurance to homeowners, renters, and businesses. This program helps manage the high risks associated with flooding and makes flood insurance more accessible and affordable.

Ledford Agency LLC Is There For You

Ledford Agency LLC is here for you when you need insurance information. Our services are available in Midland, TX, and the surrounding areas. Call today.

When you buy a home, you have to furnish it and get appliances if the builder doesn’t provide them. You’ll come across a home warranty as you purchase items for your house, including upgraded HVAC systems. Home warranties cover items like broken-down appliances and other things that wear out over time. They sound good, but are they worth it? Ledford Agency LLC in Midland, TX wants you to take a good look at the pros and cons of these warranties before you buy one.

Just How Much Is Covered?

When you get a home warranty, you pay a yearly fee and a smaller fee whenever you have something inspected. The good part is that if the warranty pays for the repairs you need, your financial outlay may be a lot easier to handle; you pay only the amount that the warranty states you’ll pay rather than the entire repair cost. That cost can run very high for larger systems, so a warranty stating you’d pay only a small amount can be excellent.

As with any warranty, though, there are some cons to consider. One is that the warranty may not pay out, a risk you take with any coverage. Another is that the warranty may cover only repairs and not replacement, leaving you on the hook for the whole cost if repairs are deemed useless. And you may be limited to using only those repair companies the warranty company deems acceptable.

A home warranty can be good, but it’s not for everyone. You may want to discuss whether or not to buy a warranty with an insurance agent at Ledford Agency LLC in Midland, TX.

Homeowner’s insurance comes in many different types to fit the needs of those living in Midland, TX. Buying the right kind of policy is crucial to your well-being and that of your family. If you’re unsure of what you need in a homeowner’s policy, Ledford Agency LLC will gladly guide you through the process.

Home Policies Have a Number Designation

Consumers will find eight basic types of home insurance policies, each with the letter HO, a dash, and the numbers 1 through 8. You’ll find this designation on your policy’s declaration page. Each refers to a specific type of coverage.

The following are the different types of policies you may encounter:

• HO-1, providing barebones coverage for only ten specific perils
• HO-2, known as the broad form, provides additional coverage, including dwelling coverage, personal liability, and loss of use
• HO-3, an open peril policy, is the most common type issued
• HO-4, renter’s insurance, for those renting houses and apartments
• HO-5, the highest level of coverage, involving actual replacement costs
• HO-6, for those living in a condo or co-op
• HO-7, similar to an HO-3 but applying to mobile homes
• HO-8, for homes more than 40 years old that may have higher replacement costs

Why Designations Matter

If you purchase the wrong type of policy, you may not receive essential coverage. The best bet is to buy coverage in the amount that reflects your total assets. Anything beyond that will increase your liability protection for accidental injury or property damage.

Don’t Select the Wrong Policy

You may be tempted to choose an incorrect type of policy because it may be cheaper than the one that is right for your needs. Instead of guessing, let Ledford Agency LLC, serving residents in Midland, TX and surrounding areas, help you choose the most appropriate policy to cover your home and its contents.

Just like with everything else, you want to find the right balance when it comes to buying insurance. You want to have enough protection to avoid disaster without paying extra for coverage you don’t need.

At Ledford Agency LLC, we help you find that balance when you insure your Midland, TX home. One of the ways you can make sure you have the right coverage is by following the 80/20 rule.

What Is the 80/20 Rule?

The 80/20 rule is an insurance industry standard. Most insurance companies use this standard, which basically assigns a minimum amount of coverage you need to get when insuring your home.

Under the 80/20 rule, you will need to insure your home for at least 80% of its replacement value in order to make claims. If your coverage is less than 80% of the replacement value, your insurance will only pay a proportionate amount of your claim.

Changes To Your Home’s Value Can Change the Amount of Insurance You Need

As the homeowner, you need to be aware that changes in your home’s value can affect the use of the 80/20 rule. For instance, making major upgrades to your home can significantly raise your home’s value, at which point you may need more insurance. Let your agent know right away when you make improvements to your home. Inflation can also cause your home’s value to increase.  

We Are Here To Help

You need to keep in mind that the 80/20 rule has no effect on your liability coverage. Also, there can be a large difference between the replacement value of your home and the market value. If you have any questions about your Midland, TX homeowners insurance, please feel free to call the Ledford Agency LLC today.

When homeowners have a home insurance policy, they gain a sense of security knowing that their property and possessions are protected. However, homeowners need to understand their responsibilities and duties to ensure the smooth operation of their insurance coverage in and around the Midland, TX area. 

Ensuring Property Safety and Maintenance

Homeowners are responsible for maintaining their property in a safe and well-maintained condition. This includes regular upkeep, addressing potential hazards, and making necessary repairs. 

Notifying the Insurance Provider

Homeowners must promptly notify their insurance provider of any changes that may impact their policy. This includes updates on renovations, additions, changes in occupancy, or the presence of specific risks (e.g., adding a swimming pool or renting out a portion of the property).

Taking Necessary Preventive Measures

Homeowners must take reasonable steps to mitigate loss and damage to their property. This may involve securing the property during an impending storm, promptly repairing minor damages to prevent further deterioration, or implementing safety measures like installing smoke detectors or security systems.

Filing Claims Properly

In case of a covered loss or damage, homeowners must promptly document and report the claim to their insurance provider. This includes gathering evidence, such as photographs or receipts, to support the claim and providing accurate information about the extent of the loss. Adhering to the claim reporting procedures specified by the insurance provider helps ensure a smooth and efficient claims process.

Engaging in the Claims Process

Homeowners must cooperate fully with the insurance company during the claims process. This involves providing requested documentation, responding to inquiries, and working with adjusters or investigators as needed. 

How Ledford Agency LLC Can Help You

At Ledford Agency LLC, we can answer all your questions concerning boat insurance coverage. We assist the Midland, TX region. Contact us today.