Do I Need Homeowners Insurance If I Rent Out My Home?

As a homeowner, you probably already have a homeowners insurance policy to protect your investment. However, basic homeowners policies do not cover all damages, especially those incurred while the home was rented out to someone else. Depending on how long the Houston, TX home is rented for and the situation, there may be some exceptions. Our experienced agents at Heydari Financial Group can advise you on what insurance you need while renting your home. 

Short-Term Rentals

If renting out your home is only short-term, such as a week or for a few weekends, your homeowners insurance needs may vary. The insurance company takes into consideration the length of time and specific circumstances the home is rented. Some insurance companies allow short-term rental and provide coverage if they have been notified in advance and the same tenant is renting the house. Other companies require short-term tenants to be added as a rider to your existing homeowners policy.

If you plan to have multiple tenants rent your home for short periods, the insurance company considers this a business and will not cover your property. For these home rentals, you need a business insurance policy, such as a hotel or bed and breakfast policy. 

Long-Term Rentals

A second home is a popular investment strategy, and many rent out their second homes. Renting out a second home as a source of income requires you to carry business insurance, such as landlord or rental dwelling policies. Your insurance agent will discuss risks with you and how long the home will be rented. This information helps determine what types of insurance policies are needed and how much coverage is required. 

Rental Insurance

Your business insurance policy covers the house’s structure and not your tenant’s belongings when renting out your home. However, some landlords require tenants to carry renters insurance to cover their possessions and any damage they may incur on your property. 

When renting out your Houston, TX home, call the experts at Heydari Financial Group for help purchasing the best insurance available for your needs. 

How to Avoid Car Insurance Lapse

As money gets tight, everyone starts looking for ways to cut back and save a little money. One option many consider is letting their car insurance in Houston, TX expire for just a short period. However, allowing car insurance to lapse is not the best idea because many other unexpected problems can occur when car insurance lapses. Call the experts at Heydari Financial Group to discuss the dangers of letting a car insurance lapse. 

Is Car Insurance Required in Texas? 

All car owners with a registered vehicle in Texas must satisfy the Texas Financial Responsibility Law and maintain proper car insurance. When pulled over, drivers must show proof of insurance and have their insurance card on them at all times. If stopped without insurance, drivers face a fine of up to $350 for the first time pulled over. In addition to penalties, repeat offenders not having proper insurance could face having their license revoked. 

How Do I Avoid a Lapse in Coverage? 

There are two main reasons car insurance gets canceled — multiple driving offenses and not paying the premiums. The best way to avoid a lapse in auto insurance coverage is to make the payments on time and maintain a clean driving record. If money is an issue, speak with an insurance provider to discuss discounts to help make premiums more affordable or shop around with other insurance companies for a cheaper rate. 

What Happens if My Car Insurance Lapses? 

Should an insurance policy lapse, call the insurance agent immediately to discuss options to get it reinstated. When a lapse in insurance happens, drivers face financial consequences, such as fees and penalties, and risk losing their license. Additionally, when an insurance policy lapses, there is a risk of paying higher premiums in the future.  

When owning a car in Houston, TX, it is imperative to do everything possible to maintain the required car insurance. For additional information or help with a lapse in your insurance, call our experts today at Heydari Financial Group. 

Do I Need Flood Insurance in Houston, TX

Before Hurricane Harvey hit Houston, TX on August 25, 2017, no hurricane had damaged the city since 1961. Although conventional wisdom attributes hurricane damage to the high, sustained winds, flooding often causes longer-lasting, costlier damage due to the length of time required for the waters to recede so that debris cleanup and mold mitigation may begin. Nevertheless, home and business owners roll the dice without flood insurance, mistakenly thinking that their homeowner’s, renters’, or commercial insurance policies cover those contingencies.

Your Policy Coverage and Flood Damage

Homeowners’, renters’, and commercial insurance policies typically exclude flood damage, including losses from home business disruptions, mold formation, other issues. A single inch of floodwater could cost $25,000 in damages. Therefore, while saving a few dollars a month by not carrying flood insurance might seem tempting, the financial bite from a single heavy rain could haunt you later. A wiser decision? Speak with an agent at Heydari Financial Group to determine the correct coverage for your home, auto, and business.

The National Flood Insurance Program

Created after the passage of the National Flood Insurance Act of 1968, the National Flood Insurance Program protects property owners — including business owners, homeowners, and renters — from flood damages. The program defines a flood as an area partially or completely underwater that normally remains dry, or two or more properties affected by mudflow, shoreline erosion, or an unusual amount of surface water runoff.

I Live Outside the Flood Zones

Floods happen everywhere. Additionally, flooding affects homes and businesses outside declared disaster areas. NFIP policies pay damages with or without a federal disaster declaration. Better yet, the NFIP provides $5000 advance payments before the insurance adjuster examines your property.

At Heydari Financial Group, we will happily assist you with determining the coverage needed for your peace of mind.

Who Needs Life Insurance in Houston, TX?

While the conversation about life insurance isn’t something you want to hear, the sooner you have it, the easier it becomes for those who depend on your income when you are alive and kicking. Many people assume that life insurance only makes sense as one gets older. This preconceived notion can’t be further from the truth. Life insurance isn’t about age. It’s about your financial interests and situation. In light of this, Heydari Financial Group of Houston, TX, shares insights into who needs life insurance. You need life insurance if you:

Have dependents

Do you have children, a spouse, or aging parents? If you have dear ones depending on your income, you must have life insurance to take care of their financial obligations when you die. Life insurance replaces your income and comes in handy in meeting obligations like child care, school fees, everyday living expenses, and so forth in your absence.

Have debts

While some debts can be discharged when you die, others will have to be passed to your cosigners and loved ones. Do you have a mortgage or car loan? Have you ever wondered how these debts would be paid if you die? If you don’t want to burden your cosigners with your debts, you must consider life insurance.

Want to pay off your funeral expenses

Your family is already going through a tough time dealing with your death. An extra layer of financial obligation in the name of funeral expenses would torment your family even further. Given that funerals can be an expensive affair, take life insurance to relieve your loved ones of this burden.

Want peace of mind

Like taxes and rain, death is certain. The problem is that we don’t know the day and hour. Given that death can occur unexpectedly, life insurance can help safeguard against uncertainties of life. With life insurance, you and your family members don’t need to worry much about how your loved ones will survive financially after your death.

Buy life insurance today

Whether old or young, it’s never too late to invest in life insurance. If you are shopping for life insurance in Houston, TX, and its environs, please contact Heydari Financial Group for a personalized quote. 

Top 4 Things To Look Out For in Commercial Insurance

When you own a business, insurance protection should be high up on your priority list. Unfortunately, most business owners make the mistake of purchasing mandatory or minimum commercial insurance. While ignoring insurance for your business might seem like saving, you are in for a rude awakening when the unexpected strikes. Your prized business can come down tumbling when ravaged with perils like storms, theft, vandalism, and lawsuits. Would you want that for your business?

Are you a Houston, TX business owner looking for business insurance? You are on the right track. When buying commercial insurance from Heydari Financial Group, keep your eyes peeled for the below factors.

Compliance with the law

You wouldn’t want to be on the wrong side of the law. As such, make sure your commercial insurance complies with the state’s law. For Texas, businesses must carry commercial auto insurance and workers’ compensation insurance.

Liability protection

Whether it’s bodily injury, property damage, or advertising injury, your commercial insurance should have adequate liability coverage to safeguard your business. Financial liabilities can run your business into a financial mess. And if significant enough, liabilities can force your business to wind up. 

Property protection

Your business owns plenty of assets — talk of the building itself, inventory, furniture, and vehicles. Can you imagine the loss you would suffer if theft, fire, storms, or vandalism strikes your business? It must be enormous. With this in mind, ensure that the commercial insurance you buy provides all-around protection to your assets. 

Employee protection

Your employees are one of your most prized assets. To that end, you wouldn’t want injuries to affect their productivity. And if they do, you want to make sure that medical expenses are well covered. When sourcing for commercial insurance, see to it that it covers your employees against work-related injuries.

Need more information on commercial insurance? Contact Heydari Financial Group located in Houston, TX. Our team will be happy to answer questions you might have.

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!