Frequently Asked Questions
Can I get a discount for bundling?
Yes, some carriers offer discounts if you have coverage for both home and auto through the same carrier, others offer a discount if it is within the same agency. While a bundling discount is a good option, it is not always the least expensive option. Ag-Pro will work to find the best price and coverage for your situation.
How did you determine the value of my home?
There are different methods to determine the value of your home or property. Insurance carriers typically use a replacement cost valuation. Replacement cost is the estimated cost to construct your home in the same location, for like size and quality of construction, at today’s prices. Market value is the estimated price at which you could sell or purchase your home. The term Actual Cash Value (ACV) is the replacement cost value less depreciation. Depreciation is determined based on a combination of criteria, taking into account the age of the item and/or property.
Can I save money if I pay in full?
Some carriers offer a paid in full discount, others may not offer a discount, but charge installment fees if not paid in full.
Why does my premium increase every year?
There are many reasons your premium may increase.
- Some carriers have a standard inflation protection increase (i.e., they increase the value of your home by a specified percentage each year to include the increasing costs of construction materials and supplies).
- The carrier may have filed for a rate increase. In which case we would be happy to quote you with another of our many carriers. When a carrier implements a rate increase they are required by the Texas Department of Insurance to charge the filed rates for all parties fitting the same/similar characteristics.
- It is possible you were receiving a discount of which you may no longer be eligible (i.e., alarm system, claims free discount, new home discount, etc.) If you are unsure, please contact our office.
- The carrier may re-run a valuation on your home at renewal and increase the limit if they deem you are underinsured.
Will my insurance go down if I have a fire hydrant and/or fire department near me?
The Insurance Service Office analyzes data and assigns a Public Protection Classification code (PPC) to each community. Communities are rated based on their fire department, water supply, and emergency communication system. This information is provided to insurance carriers and is used in determining the premium.
Does my policy renew automatically?
Some carriers automatically issue a renewal declaration, others will extend a renewal offer. If it is automatic, and the premium is not received by the date specified, the policy will cancel. If it is a renewal offer, a declaration will not be issued or mailed until the premium/down payment has been received by the carrier. (Windstorm, Flood and Commercial property policies do not typically renew automatically.)
Am I covered for Flood?
Most homeowner policies do NOT include Flood. However, your definition of Flood and your carrier’s definition may not be the same. The primary difference is where the water comes from. Flood is a result of rising and/or overflowing of water, usually from a natural source. Flood insurance would need to be purchased as a separate policy and can be very reasonable if you are in a preferred FEMA zone. Sudden and Accidental water is damage that is sudden and immediate, such as a burst pipe. Other types of water damage could be a result of gradual seepage or leakage or sewage backup.
What is my deductible and/or what are my options?
A deductible is a per incident, out of pocket expense if you need to file a claim. Different carriers offer different options. You may have a dollar amount deductible or a percentage deductible. A dollar amount is a fixed amount deductible. A percentage deductible is more specific to homeowners insurance, and is calculated as a percentage of your dwelling limit. For example, if your dwelling is insured for $150,000 and you have a 1% deductible, the amount taken off the top of a claim payment would be $1500.00. Some carriers offer different deductibles for different coverages. For example on an auto policy, you may have a $200 deductible for Comprehensive claims and $500 deductible for Collision claims. On homeowners, you could have a 1% deductible for Wind claims, and $1000 deductible for Other Perils).
***Note: All carriers offer different options and have varying degrees of coverage and coverage levels. It is important to review YOUR policy carefully or contact your agent to determine what coverage you do or do not have.