Midlothian, TX is a city southwest of Dallas with an approximate population of 30,000 people. There are many things to love about the small town, including Midlothian being a great place to raise a family. How much home insurance is sufficient for this hidden gem in Ellis County? An agent at Amy Tounget Insurance Agency LLC can help you answer this question.
Median Values And Insurance Rates
The median value of a single-family home in Midlothian, TX is around $360,000. Your home indemnity policy should cover at least 80 percent of the property’s value.
Why 80 Percent?
Insurance companies typically cover the full cost of damage to a house if the homeowner purchased coverage that accounts for at least 80 percent of the home’s value. This means that a home in Midlothian, TX worth $500,000 would need a home insurance policy worth at least $400,000.
An insurance company does not leave the homeowner completely in the cold if indemnity coverage falls below 80 percent of the home’s value. The insurer, however, does not pay the entirety of a home’s value in the instance of a total loss if there is not enough coverage.
You may ultimately find yourself in a financial bind if you fail to purchase enough coverage to meet the insurer’s standards.
Check Your Policy And Call Amy Tounget For Help
It is not uncommon for a homeowner to fall below the 80 percent standard. Improvements to the property and inflation can lead to an indemnity plan that does not fully speak to the home’s market value.
It is important to review your insurance policy at least once a year to ensure your financial cushion is still stable. It would help if you also considered getting a new quote for coverage periodically.
Amy Tounget Insurance Agency LLC can help you understand the terms of your home insurance plan. Call today to see if your policy needs an upgrade.