Hot Tip - Hill Country Homeowners Insurance Update

  • Michelle Diegle
  • 04/25/22

Springtime for homeowners in the Texas Hill Country usually means sprucing up the flower beds, having the AC inspected and tuned, and maybe a call to the window washer. But you should definitely add another item to your checklist this spring. Due to rising home values in Dripping Springs and around the country, a call to your homeowner’s insurance provider is well worth the 5-10 minute phone call!

Julie Arcos-Dahl at D&D Insurance in Wimberley and Dripping Springs, TX has been receiving a lot of these calls lately. The most common question is “Do I have enough coverage?” That answer, she explained, depends on several factors. Luckily, D&D Insurance has a “replacement-cost estimator” that quickly walks you through those factors. Most insurance providers will have a similar tool, and this is an ideal time to touch base with your provider to make sure your coverage is sufficient.

According to Julie, it’s important for homeowners to understand that “Market cost is not the same as replacement cost in the insurance world.” Basically, what your home might sell for is very different from what it might cost to rebuild it. This is good news! If your home would likely sell for $500,000, you don’t need to have $500,000 worth of replacement value. You only need the cost of materials and labor. The land, and often the concrete slab, are still in place, saving money on the cost of rebuilding your hill country home.

What about the rising costs of labor and materials we keep hearing about? There is a solution for that as well! When you speak to your insurance provider, ask about any endorsements their company might provide that will cover “increased replacement costs.” These endorsements only kick in if the home is a “total loss,” but they can add $50,000 - $100,000 in coverage if needed. An endorsement like that can help you keep up with rising costs of materials and labor without a big increase in the cost of your insurance policy.

Finally, many homeowners have made major improvements to their homes during the last 2 years. Taking advantage of low-interest rates and rising equity, homeowners had more cash available for kitchen and bathroom remodeling, replacing windows, adding a deck, or putting in a pool. Make sure to update your policy to include these types of major updates!

Homeowner’s insurance policies can vary widely. Take a few minutes to review your policy and touch base with your provider. If you would like to compare your coverage with other carriers, D&D Insurance can compare multiple carriers for you to find the best fit for your budget!

 

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