Articles Posted in Home Owners Policies

There are lots of older homes in Grand Prairie, Arlington, Fort Worth, Weatherford, and all through Texas. These homes need homeowners insurance coverage. That insurance coverage needs to be have proper limits in case a loss is suffered. The following is an example of what might happen it there are not proper limits.

The Texas Court of Appeals, Third District, handed down a decision on April 1, 2010, affirming a judgment against a homeowner and in favor of the homeowners insurance company. The style of the case is, William D. Bryce and Sarah R. Bryce v. Unitrin Preferred Insurance Company and Evans, Ewan & Brady Insurance Agency, Inc.

The Bryces’ home was built in 1889 and is located in a registered historic district. The Bryces purchased the house in 1983 for $210,000 and immediately invested approximately $242,000 in renovations, bringing the total purchase and renovation cost to approximately $452,000. In April 2006, a fire destroyed the Bryces’ home. As a result of the fire, Unitrin Preferred Insurance Company (Unitrin) paid the Bryces their full policy limits of $474,000 for the dwelling and $284,400 for the contents of the home. The problem here is that the home replacement value cost was approximately $1.7 million and the contents approximately $864,000. From the time of the purchase until some time after the fire, the Bryces used Evans, Ewan & Brady Insurance Agency, Inc. (EEB) as their insurance agent.

Homeowners in Grand Prairie, Arlington, Weatherford, Fort Worth, Mansfield, Dallas, and the rest of the State of Texas, need to have a basis understanding of homeowners policies when it comes to buying homeowners insurance. There a several different types of homeowners policies available for the Texas consumer.

Because of “form deregulation”, insurance companies now may offer approved alternative policies. There are differences in coverage, which may be significant. These different forms have been the source of much confusion for consumers looking to purchase a homeowners policy. A tool for comparing coverage is provided by the Office of Public Insurance Counsel. This a good resource for consumers to look and compare the various policies being offered by insurance companies. It is a good way to make sure apples are being compared with apples and not with oranges.

The most common policy is the Texas Homeowners Policy — Form B (HOB). This article is briefly discussing only the HOB.

Residents of Dallas, Fort Worth, Arlington, Grand Prairie, and surrounding areas are fortunate in that they are not having to deal with the difficulties being faced by homeowners in the Gulf Coast areas of Texas, Louisiana, Mississippi, Alabama, and Florida. The damages following hurricanes Ike, Katrina, and others are causing nightmares for homeowners who are trying to get their insurance companies to properly and promptly pay the claims for damages to their homes.

The Sun Herald ran an article on December 21, 2009, that addresses more of the continueing problems these Gulf Coast residents are having with their insurance companies. The title of the article, “State Farm pays up, but argues award was in error”, doesn’t tell the whole story.

State Farm Fire & Casualty Company, recently paid a couple $179,100.31 for Katrina damage, but the check came to late to save the home of Henry and June Kuehn. The now years old claim of the Kuehn’s, was ordered to be paid by a U.S. District Judge, back in August of 2009. This ordered payment was based on an appraisal award reached by an appraiser for each side, State Farm and the Kuehn’s, and an umpire, who said the amount they considered was only for damage above the second-story water line in the house.