Home Insurance: Basic Terms to Know

Are you considering purchasing home insurance? This being your first time, the insurance jargon can be a bit confusing. But do not worry, Heydari Financial Group is here to help the people of Houston, TX. We’ll highlight key home insurance terms that you need to know.

These terms will help you understand different home insurance coverages and how they can help you when it matters most.

Actual Value

The actual value is the average value of your home plus personal belongings before the loss occurred. In short, it is the amount you need to replace your property after deducting the depreciation value. Depreciation refers to the value lost due to age and wear since purchasing the home.

H05 Policy

H05 is one of the main coverages under home insurance. It’s meant for homeowners who want high limit coverage to get the most protection of their property. You’re guaranteed compensation if you suffer personal property damage, except when the specific cause of loss is exempted from your policy. 

The term used to describe risks in home insurance is “peril.” Perils could include hurricanes, fires, water damage, among others.

H03 Policy

H03 policy is coverage for homeowners who need basic protection of their property. For your claim to be valid under an H03 policy, you must prove that the loss happened due to one of the “named perils.” Any cause of loss that is not included in the policy will not count for a valid claim.

In most cases, the H03 policy protects the home structure only. For personal belongings such as computers and furniture, they are only covered if they’re included in the named perils of an H03 policy.

Additional Living Expense

ALE is coverage under the homeowner’s insurance that protects the policyholder during the time they are temporarily displaced from their home. Most of the time, this coverage is a small fraction of the property insurance. 

Ready to Purchase Home Insurance?

Now that you understand these key terms, you’ve made your first step towards buying home insurance. But there are more home insurance terms you still need to learn. Luckily, you have us.

Heydari Financial Group offers home insurance advice to residents of Houston, TX. Call us today for immediate assistance. 

What is basic auto insurance in Texas

Drivers in Texas are required to have at least basic insurance. Most states have basic requirements for insurance but they are not all the same. One thing they do have in common is they all require some form of liability coverage. At Heydari Financial Group in Houston, TX, we are an independent agency and believe in treating our customers with honesty and integrity. Our years of experience make us a great option when you have questions about your insurance coverage. 

The law in Texas mandates drivers show they are able to pay for any damage they may cause in an accident where they are responsible. Most people show this with auto insurance. The amount of liability insurance you must have is 30/60/25. In an accident where the driver or passengers are injured, you need $30,000 in personal injury converge with a total of $60,000 per accident if more than one person is injured. You also must have $25,000 for damage to property which in most cases will be the other vehicle. 

The 30/60/25 is the basic amount you must have but not necessarily the amount you should have. If the injuries or damage were to go beyond the limits of your coverage, you would need to pay the overage out of your own pocket. If that would be a hardship, you might want to have more than basic auto insurance. 

For vehicles with a lease or a loan, you will need to carry collision and comprehensive insurance as required by the lessor or the lender. This coverage protects the vehicle which protects their investment in your vehicle. 

When you are ready to change your auto insurance or get a policy review, the knowledgeable team at Heydari Financial Group in Houston, TX will be here for you. Contact us for a no-obligation quote. 

What Does Flood Insurance Cover?

With more flash floods and hurricanes popping up across the world than ever before, have a flood insurance policy in place may not be a bad idea. While Texas homeowners are not required to have flood insurance, it is a good idea to protect your home which is one of the largest and most expensive investments you will make in your lifetime.

 Many people are under the impression that flood coverage is included in their homeowner’s insurance policy but then find out it is not a part of their policy. You need to talk to an agent who has experience and knowledge of flood insurance, such as the insurance agents at the Heydari Financial Group in Houston, TX who can help you create a policy that works for you and your property.

Flood Insurance Policy Coverages

Your flood insurance policy can be obtained through your insurance agent and the National Flood Insurance Program (NFIP) and you have two options to choose from. One option will provide coverage for your home up to $250,000 while the other will cover your personal property up to $100,000. For example, if your home is destroyed by a flood, you will be issued enough money to purchase a new home or rebuild at the site of the house you lost to flooding. Your personal property will also be covered, which includes your furniture, clothing, appliances, and other personal items you worked hard to purchase. Some of the items not covered under a flood insurance policy include cash, stocks, and bonds so those things should be kept at a location other than your home, such as a safety deposit box.

To get a quote or make an appointment with a trusted and experienced agent, contact the Heydari Financial Group in Houston, TX, by calling our office today!

Is it a good idea to get life insurance?

People that live in the Houston, TX area will have many different personal insurance needs that need to be met. One very important form of insurance coverage that all need to consider getting is life insurance. This is a unique form of personal insurance coverage that will provide financial protection for those that rely on you. There are several reasons why getting life insurance is a good option for anyone here. 

Insurance Offers Financial Protection for Dependents

The primary reason that someone will get life insurance is that it can offer financial protection for your dependents. When you get a full life insurance policy, you can build and curtail it to meet your needs. This will include getting a policy coverage level that can cover all future costs that your dependents may have. You can then pick a term length that is a good option based on your needs and situation.

Insurance Can Offer Investment Benefits

Another reason life insurance can be a good idea is that it can offer you investment benefits. If you invest in a whole life policy, some of your monthly payments will be deposited into an account that will grow with interest. In the future, you will be able to liquidate this account and use the funds for whatever you wish. 

Picking the right life insurance policy in the Houston, TX area is a big decision. If you are looking for a new policy in this area, it would be a good idea to call the team at Heydari Financial Group. If you do call the Heydari Financial Group you will get to learn more about how life insurance works and how it can protect you. This will then help you choose a policy that is right for your situation. 

What Does Commercial Insurance Cover?

You have invested time, effort, and money into your business which is the reason you will want to take every measure you can to protect it. Commercial insurance is one way to protect your business while giving you the peace of mind you deserve. We understand the importance of commercial insurance at the Heydari Financial Group in Houston, TX.

In the state of Texas, commercial insurance is not required for your business but it is a great idea to have a policy. If you have vehicles owned by your business or personal ones that you drive for your business, you must have at least the minimum amount of auto liability insurance that is required under Texas laws. Also, if you rent the space in which your business is located, the property owner may require you to obtain a commercial insurance policy.

Types of Coverage Options for Commercial Insurance

Liability and Medical Payments

There are several other types of commercial insurance coverage you can choose from for your business. This includes liability and medical payment insurance policies that will help cover any injuries sustained by a customer or visitor to your business. For example, if someone slips and falls while visiting your business and is injured, this part of your policy will help cover the medical bills and lost wages if they cannot work due to the injury. Liability insurance will also help cover the medical bills of someone who is injured as a result of your business. For instance, if you own a tree-trimming business and a limb accidentally falls on someone as they are walking by the worksite, this part of your policy will cover their medical bills.

Comprehensive Insurance

This part of your policy is very important in keeping your business operating and continuing your income during some type of disaster. This coverage will help you recover from a natural disaster, fire, or vandalism. It will also help cover the costs of items lost due to theft or a break-in at your business.

To create the best commercial insurance policy for you and your business, you should enlist the help of an agent experienced in commercial insurance. Our agents at the Heydari Financial Group in Houston, TX are ready to assist you with all of your commercial business needs so please call for an appointment today!

Why should I get home insurance in Texas?

In the Houston, TX area, people are continuing to notice a quick growth in the local economy. Due to this, owning a home in the Houston area can be a great option. If you do decide to purchase a home here, you will want to make sure that you get a proper home insurance policy. There are many reasons that you should get a home insurance policy when you own a property in this area of Texas.

Insurance Provides Valued Coverage

The main reason to get a home insurance policy is that it can provide you with very valuable protection. Someone that is a property owner will want to make sure that their dwelling is covered. With home insurance, you can receive coverage to repair or replace your property or even your personal belongings. Additionally, the home insurance policy will include a component of liability insurance that will be very helpful if you are ever sued following an accident.

Insurance is Required

Additionally, the majority of people that own a home in Texas will have some obligation to carry home insurance at all times. If you do get home insurance, it can ensure that you stay in compliance with regulations that are set forth by a mortgage lender or a home association. This could help you to stay in good standing and avoid penalization.

Anyone that wants to own a home in the Houston, TX area needs to spend time also considering their home insurance needs. If you are shopping for insurance here, you should call the team at Heydari Financial Group. There are a lot of factors that need to be considered when shopping for this insurance. The team at Heydari Financial Group can answer your questions and ensure you get into a quality policy. 

Most Common Auto Insurance Myths

Buying the right auto insurance is an important step because it helps to protect your vehicle, you as a driver, your passengers, and other drivers on the road. Unfortunately, there is a lot of wrong information about car insurance that does not allow you to make the right decision and pick the policy you really need. Therefore, Heydari Financial Group serving clients from Houston, TX and other surrounding areas has prepared the list of few myths about auto insurance that need to be debunked: 

Color of Your Car Determine the Cost of Insurance

No, the color of your car does not have an impact on your insurance costs. The price of car insurance depends on many other factors, including the model, engine size, the cost to repair the vehicle, the age, and some others. 

Car Insurance is More Expensive for Older People

It is actually the opposite. In most cases, older drivers may be qualified for special discounts. For example, if you are 55 and you have successfully completed an accident prevention course, you can get a reduction in your car insurance premium. 

You Credit Score Does Not Have an Impact on Your Insurance Rate

Unfortunately, your credit may matter. Insurance companies use a credit-based insurance score to understand how likely a driver to file a claim or have an insurance loss. For this reason, a low credit score can raise your auto insurance premiums anywhere from 0% to 200%. 

If you are a car owner Houston, TX and you are looking for a trustworthy insurance agency to purchase a new car insurance policy or update the existing one, Heydari Financial Group will be glad to assist you. All you need to do is to visit our website or give us a call to talk to one of our experienced insurance agents. 

3 Reasons You Should Review Your Auto Insurance Annually

It’s important to be safe when you’re in Houston, TX. Auto insurance is a must if you plan on driving around. Your auto insurance has to be reviewed annually to keep you safe. There are quite a few reasons to do so.

At the Heydari Financial Group, we’re able to help you review your auto insurance policy. We’ll be able to get quotes from multiple insurance companies, allowing you to see what each will charge. It can make it easier for you to confidently choose a policy knowing that you’re getting the best possible deal.

It’s also a good idea to review your policy for coverage levels. For example, if you have had an accident in the past, you might want to add more coverage to avoid an out-of-pocket expense. You may even want to reduce the deductible for the same reason. If you’re not sure about the coverage levels and what kind of coverage you should have, ask an agent. We’re here to answer questions that you might have to ensure that you’re covered against any kind of situation that you might run into.

Finally, you want to make sure to review your auto insurance to find out if you qualify for any new discounts. You may have bought a home, allowing you to get a homeowner discount. You may have taken a safe driving course, qualifying you for money off of your premiums. Various discounts can add up quickly, giving you a more affordable monthly premium.

It doesn’t take long for you to review policy. Plus, it can be the best thing for you.

When it’s coming time for you to review your auto insurance, be sure to contact us at Heydari Financial Group. One of our insurance agents can help you to find the right policy to keep you safe on the roads in Houston, TX.

 

What Are The Types Of Homeowners Insurance Policies?

The agents of the Heydari Financial Group in Houston, TX specialize in homeowner insurance. You will be guided to purchase a policy that will meet your needs. Homeowners insurance is essential.  A  homeowners policy will save you money and enhance your awareness to protect your home.  Homeowners insurance is not required by law, but a mortgage company will need a mortgage to protect its financial interest in the home. 

Homeowners policies have been standardized by the Insurance Office, Inc. and the American Association of Insurance Services. These organizations developed eight homeowners policies referred to as HO-1 through HO-8.

A.  HO-1 is an owner-occupied standalone home that covers ten perils such as Fire or lightning, Hail or windstorms, Explosions, Riots or civil commotion, Damage from aircraft, Damage from vehicles, Smoke, Malicious mischief or vandalism, Theft, and Volcanic Eruptions.

B.  HO-2 Is a “basic form” homeowners insurance policy providing coverage on a “named peril” basis that is specifically listed in the policy. 

C. HO-3 – Is a “broad form” homeowners insurance policy covering the structure of a home against all losses except expressly excluded losses on an “open-peril” basis. “  while personal property is covered on a “named peril” basis. 

D.  HO-4 – Is a renters insurance policy which covers renters liability and personal property.

E,  HO-5 – Is a “comprehensive form” policy covering the home and personal property on an “open-peril” basis. This comprehensive coverage is not a typical homeowners policy like an HO-2 or HO-3 policy.

F.  HO-6 –  Is a condo insurance policy covering personal property and the structure of the condo from the wall studs in.

G.  HO-7 — Is insurance coverage is for a mobile or manufactured home form similar to an HO-3. 

H.  HO-8 — Is coverage for an older home similar to an HO-3.

The agents of the Heydari Financial Group in Houston, TX will advise you of the proper homeowner’s insurance form. Please call for an appointment!

Should I get full coverage even though my car isn’t brand new?

It can be hard to get everywhere you want without driving if you live in Houston, TX. The easiest and most economical way to meet the insurance requirements in Texas is to purchase a liability policy. At Heydari Financial Group, we can help you find a low rate on a standard auto insurance policy.

 You may not realize that full coverage can be surprisingly affordable, and provides many advantages over a policy that only protects you up to the minimum limits.

What your regular policy covers

You need to have at least this much coverage to prove financial responsibility in Texas:

  • $30,000 for each injured person, to cover everything from medical bills to attorney fees, with a $60,000 maximum limit for each accident no matter how many people were involved
  • $25,000 for property damage, no matter how much damage there was.

This is liability only, so it doesn’t protect your vehicle in an accident.

What you can get with full coverage

The maximum amount your insurance company will pay out depends on the limits you agree on ahead of time. The first thing you might want to ask about is how to increase your coverage, in case you are in an accident where the damages exceed those low amounts.

Here are some other options you can get with full coverage:

  • Collision coverage, to help repair or replace your vehicle in case of an auto accident
  • Comprehensive coverage, to protect your vehicle in case of theft or vandalism
  • Rental reimbursement, in case your car is out of commission after an accident
  • Uninsured and underinsured motorist coverage, in case you are in an accident with someone who doesn’t have the proper insurance

If you are in Houston, TX, we can help you find the protection you’re more comfortable with. Call Heydari Financial Group today for a free quote.