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.

Some carriers offer a paid in full discount, others may not offer a discount, but charge installment fees if not paid in full.

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.

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.