Ledford Agency LLC

1910 N Big Spring St
Midland, TX 79705

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Is a Home Warranty Worth It?

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.

The Main Types of Homeowner’s Insurance Policies

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.

What is the 80/20 rule for home insurance?

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.

Homeowner’s Responsibilities Through Their Home Insurance Policy

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. 

3 Things You Need to Know About Home Insurance

Virtually all mortgage companies require homeowners to have some level of protection through home insurance. These policies typically cover damage and destruction to a home’s interior or exterior, theft, and personal liability. This type of insurance coverage can actually save you hundreds of thousands of dollars in the event of a natural disaster in the Midland, TX area.

When shopping for a policy, there are three vital things that you need to know:

What Items and Events Are Covered

Generally speaking, should your home face a disaster such as a fire, hurricane, lightning, or another natural event, your insurance company will compensate you for repairs. You also need to be aware of how you will be compensated. For instance, you may be paid the cash value of your items or the cost to replace those items.

What Things Aren’t Covered

Though there are many different types of damages covered by most homeowner’s insurance policies, some damages such as those caused by earthquakes and floods are generally not covered. If you live in an area where coverage for these events is needed, you can supplement your policy with other types of insurance.

How Rates Are Determined

As with other types of insurance, rates are influenced by associated risk factors. Each provider has their own unique formula used to assess risk, further varying the rates you may be quoted. The type of coverage you choose, the area your home is in, and your claims history are just a few of the most common factors used.

Get the Coverage You Need From the Ledford Agency LLC

If you’re in the Midland, TX area and need a bit of help determining what type of coverage is right for you, give the team at the Ledford Agency LLC a call today! We can’t wait to speak to you.

Four rules to follow when you buy home insurance

The home insurance policy that you choose could end up having a big effect on your finances in the future. That’s why you need to follow some important rules when you insure your home in Midland, TX. 

Ledford Agency LLC is here to provide you with the home insurance coverage that you need.

The following are four rules to follow when you buy home insurance:

Understand what standard home insurance covers

You need to know what coverage you’re getting from your policy. While standard home insurance covers certain types of damage such as fire damage, it doesn’t necessarily cover other types of damage such as hurricane damage. 

You want to make sure that you have the coverage you need for the risks that you face as a homeowner. 

Use the Internet

The Internet is a great source of information on home insurance in general and on the policy offerings of specific home insurance providers. That’s why you should use the Internet to learn about home insurance and compare your options. 

Buy home insurance from a reputable company

Your home insurance policy should be offered by an established company with a good reputation.

You shouldn’t buy a home insurance policy from a company before you research its background. Explore reviews from past customers so that you know you’re buying from a reputable company. 

Make sure you have enough liability coverage

A lot of homeowners make the unfortunate mistake of purchasing only basic liability coverage.

The lowest maximum coverage limit for home insurance is often far too low to cover the expenses that can result from a lawsuit against a homeowner. That’s why you should always add liability coverage. 

Give Us A Call

Do you have questions on home insurance in Midland, TX? We’re here to answer your questions at Ledford Agency LLC. Get in touch with us so that you can get a quote on a policy that will protect your home and finances. 

How to Avoid Home Damage When Decorating Your Home for the Holidays

During the holiday season, you may want to make your home merry and bright. Unfortunately, as you are decorating your home, you can make mistakes that can be damaging to your home. At Ledford Agency LLC, serving the greater Midland, TX area, we want to help you keep your home safe in any way we can.

Here are a few ways you can avoid home damage as you go about decorating your home for the holidays:

Avoid Using Nails to Hang Christmas Lights

One of the most common mistakes that people make when they are decorating their home for the holidays is to hang Christmas lights from their gutters or roofs with nails. Nails can damage both your gutters and roof, so they should never be used. Instead, use light clips to hang lights. 

Don’t Overload Your Electric System

Another way that you can avoid home damage this holiday season is to avoid overloading your electrical system. If you plan on making a large display, reach out to an electrician to add another circuit to your breaker box to accommodate all of the lights and blow-ups you plan to use. 

Cover Your Floor to Protect It From the Christmas Tree

Lastly, always cover your floor to help protect it from the Christmas tree. Water from a Christmas tree can damage the carpet or hardwood floor. The base of a fake tree can scratch flooring. Protecting your floor helps to ensure your tree does not leave behind damage after the holidays are over. 

Give Us A Call

At Ledford Agency LLC, serving the greater Midland, TX region, we are committed to helping you care for and protect your home. Having a great home insurance policy is another way that you can care for and protect your home. If you have questions about home insurance or are looking for a new policy, let us help you. Call us today to learn more. 

Is Home Insurance Important for your Texas Home?

You worked hard to find the perfect home for you and your family and made a large investment in your property so you will want to protect it with an adequate amount of home insurance. The insurance agents at Ledford Agency LLC in Midland, TX want to explain the importance of having a home insurance policy in place.

If you were loaned the money to purchase your home by a mortgage company, bank, or another lender, you will be required to have a home insurance policy in place. Even if your home is paid off, though, it is imperative to have a home insurance policy in place to cover your property in the event that some horrible incident occurs. It’s better to be prepared ahead of time, just in case.

Coverage Options for Home Insurance

It is important to have home insurance to cover not only the structure of your home as well as outbuildings and other structures on your property but to replace your personal belongings, furniture, and appliances if something happens to them. If your home has been damaged or demolished by an act of vandalism, a natural disaster, or a fire, your home insurance will assist you in repairing or replacing any items, including your house itself. A home insurance policy will also help you cover any items that are stolen if your house is burglarized or a theft incident occurs.

Contact Us

Contact the home insurance agents at Ledford Agency LLC in Midland, TX today to get your home insurance policy started and enjoy the sense of peace it brings you in knowing your home is protected.

How Much Home Insurance Do I Need?

What’s one of the most frustrating things about insurance? You guessed it right — filing for a claim only to discover that you are uninsured or underinsured. This is not only frustrating but also messes with your finances. So, if you want to invest in home insurance, you want to ensure that you are covered optimally. As such, Ledford Agency LLC of Midland, TX is here to guide you on the amount of home insurance sufficient for you.

To help you understand the amount of home insurance you need, we need to break it into various insurance coverages. This way, you can understand how much of each category you need.

How much dwelling insurance do I need?

Purchase home insurance adequate to rebuild your home when damaged beyond repair. Instead of using the cost you used to buy or build your home, use the “replacement cost value” since it considers changes in building materials, significant renovations, and other factors.

How much liability coverage do you need?

The liability portion of your home insurance covers you against liability claims, including lawsuits. And since these third-party costs can be expensive, you need sufficient insurance to minimize exposure.

While most home liability coverages offer liability coverage of $100,000, we advise you to invest in liability coverage of between $300,000 and $500,000. Opt for umbrella insurance or excess liability coverage if you have assets and savings worth more than this coverage.

Determining property insurance sufficient for you

Before anything else, please conduct a home inventory for your assets. This way, you will ensure that every item in your possession is covered. Once you establish the value of what you own, invest in insurance that can replace your assets without incurring out-of-pocket expenses (except a deductible).

Learn more about home insurance in Midland, TX

Need to expand your home insurance knowledge? Please get in touch with Ledford Agency LLC for more information. We will help determine home insurance suitable for your current needs.

Protect your home with an upgraded policy

If you are a homeowner in the greater Midland, TX area, you can rely on the team at Ledford Agency LLC for all of your insurance needs. We know how important your home is, both as an investment and as a key part of your life. Let us help you protect it!

Is it time to upgrade your homeowner’s policy?

There is a lot to consider when you buy a home, and after you make the purchase, you may not think too much about your homeowner’s insurance policy. In fact, you may just continue to renew it year after year without giving it as much as a second glance. While this is entirely understandable, it can lead to problems down the line.

When you stay on top of your current policy benefits and how they compare to your current policy needs, you can move to fill any gaps right away. In fact, many homeowners decide to upgrade their policies once they take a closer look at its protection and overall coverage levels.

Due to increases in your home price or the value of your possessions, your current policy may not be sufficient. Or, you might be interested in adding some new features to the current home insurance policy. Upgrades such as reimbursement for temporary housing can be a wonderful thing to have. If your home is rendered uninhabitable due to a covered event, think about the peace of mind that will come with an alternative housing feature in place.

Find out more today

Ledford Agency LLC is here for you. We want to help all homeowners in the Midland, TX area protect their homes. If you would like to find out more about your policy options, call or stop by our office today!