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Don't
Pay Too Much For Insurance
Consumers occasionally have trouble finding affordable property
insurance because some insurers fear their homes will generate
too many claims. Insurance companies may label these homes
"uninsurable."
In
many cases, these homes are in older rural or inner-city
neighborhoods.
Texas´
Voluntary Inspection Program (VIP) offers owners of well-maintained
homes a way to show insurers that they deserve coverage.
Under
the VIP, a home receives a "certificate of insurability"
if it passes an inspection by a credentialed inspector,
qualified by the Texas Department of Insurance (TDI). You
can get a list of inspectors by calling TDI´s Consumer
Help Line at 1-800-252-3439.
A
certificate of insurability creates a presumption your home
is insurable. If you have a certificate, an insurance company
can´t refuse to sell or renew a policy because of
your home's condition unless the insurer reinspects it and
describes the deficiencies in writing.
2008
inspection fees are limited to $102.80, plus an additional
$51.40 if you need a follow-up inspection to verify corrections
of problems identified the first time around. An inspector
may charge, in addition to the inspection fee and the follow-up
fee, a reasonable fee for mileage for each trip to and from
the residential property risk, taking the most direct route.
The mileage shall not exceed the current federal standard
mileage rate for business use as established by the Internal
Revenue Service (IRS) beginning January 1, 2008. The current
standard mileage rate for business miles driven is 50.5
cents per mile.
Once
you have a certificate of insurability, it´s good
for three years so long as you don´t make substantial
changes to your property. If that happens, an insurer can
require an additional inspection. An insurance company may
also require a written statement from you that there have
been no significant changes to the property since it was
inspected.
To
receive a certificate of insurability, a home must meet
a list of reasonable standards issued by the TDI. These
include, but aren´t limited to:
good
maintenance, with no unrepaired damage and no accumulation
of trash, brush, or debris in the yard
wiring
in good working condition, with no flickering lights or
evidence of overheating
no
curled, cracked, or significantly deteriorated roof coverings,
or missing shingles
plumbing,
heating, and cooling systems in good condition and free
from leaks
space
heaters and hot water heaters properly vented and not too
close to walls and furniture
no
unfenced swimming pools, hot tubs, fish ponds, bodies of
water, or trampolines
property
accessible to fire-fighting equipment
no
signs of active termites or unrepaired insect damage.
Many
homes can easily meet the standards for a certificate of
insurability.
Texas
Deptartment of Insurance
