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What's Really Covered By Your Home Insurance?: An Interview with Connie Lee of Germania Insurance Agent

By Randy Yates

Tell us a little bit about your company and the services you offer.

I have been a Germania Insurance Agent in Hamilton, TX since May 1997. We offer a full line of insurance products from commercial to home owner, auto and liability. We specialize in farm and ranch insurance. Also, we sell life insurance for family and business protection.

Can you briefly describe what an example of bare minimum home insurance coverage would be like in Texas?

Bare minimum home insurance coverage is when a home is covered for actual cash value coverage.

What are some important things that would not be covered in that example?

The insured has to pay the deductible plus the deprecation of the age of the roof or whatever is damaged and the insurance company pays the difference. The insured could have to pay 80% of the cost.

What is replacement cost coverage and how does it potentially help homeowners?

Replacement cost coverage pays for the total claim except the insured has to pay their deductible.

Can you talk about any other replacement cost specifics?

If an item cost more today than it did when it was purchased (such as a refrigerator) then the coverage will pay the amount that it cost now.

How is the deductible typically calculated with replacement cost? What about in the case of a flood, using flood insurance?

The deductible is whatever the insured chooses when the policy is purchased. One per cent of the insured amount on the dwelling or higher. If there is a flood the homeowner insurance policy will not cover rising water so there is not any coverage. If there is a flood insurance policy it will cover the damage less the deductible.

Do you have any tips for homeowners who may have a limited budget for homeowners insurance?

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