Homeowners Insurance

Home insurance is a financial policy designed to help manage costs associated with property damage, liability claims and related expenses. When covered incidents occur, it can help you by reducing out-of-pocket losses. At Area Insurance Services, we understand what Midland homeowners need when seeking reliable coverage that addresses West Texas’s unique challenges.

What Home Insurance Covers

Home insurance coverage varies depending on your needs and preferences; however, policies may commonly include the following features:

• Dwelling coverage may help pay for repairs or rebuilding if a covered event damages your home’s structure.

• Personal property coverage may help replace damaged or stolen belongings such as furniture, electronics and clothing.

• Liability coverage may help with expenses if you’re at fault for someone else’s injuries or property damage.

• Additional living expenses coverage may help with temporary housing costs and other expenses if your home becomes uninhabitable due to a covered loss.

• Other structures coverage may extend to detached buildings on your property, such as sheds or fences.

• Medical payments coverage may assist with smaller medical bills for guests injured on your property, regardless of fault.

What Does the 80% Rule in Home Insurance Mean?

The 80% rule is an essential concept in homeowners insurance. This rule states that an insurer will only cover the full cost of damage to a house if the owner has purchased coverage equal to at least 80% of the house’s total replacement value.

If you don’t meet this threshold, your insurer may only pay a portion of your claim, even for partial losses. For example, if your home would cost $400,000 to rebuild at today’s construction prices, you would need to insure your home for at least $320,000 (80% of $400,000) to receive full coverage for a partial loss.

This rule emphasizes the importance of reviewing and updating your coverage regularly to keep pace with increasing property values and construction costs around your home and surrounding areas.

Factors such as labor availability and material prices in the region can significantly affect replacement costs, making accurate valuation particularly important for homeowners.

Find the Right Coverage

Contact Area Insurance Services today to explore home insurance options tailored to your property’s specific needs. Our team can help you find coverage that offers appropriate financial support so you can focus on other matters.