Insurance can often times be confusing, which is why we have collected a series of frequently asked questions for our customers. Please, let us know if you have any questions regarding your insurance policy.

What is a companion policy?

A companion policy is offered by insurance companies who offer multi-line insurance policies at a discount for having more than one insurance policy provided by them. Most commonly, you will find 10-15% discounts if you carry your personal auto insurance along side your homeowners insurance under the same provider.

How does filing a claim affect me?

Filing claims have both repercussions as well as benefits. It is most important to evaluate the cost of repairs to the damage you have suffered versus your deductible. For instance, if you suspect that you only have $300 in damages to your auto, it would not make sense to file a claim with a $500 deductible. In this scenario, you would not only pay for the loss out of pocket, but by filing the claim you will also lose any credit offered for not having a claims history. For further guidance, call your agent today at (866)344-2956

What is the difference between Replacement Cost and Actual Cash Value?

Of the two, Replacement cost value is the best coverage option available. The difference lies within one important characteristic of Actual Cash Valuation...depreciation. When you choose ACV, you're allowing your insurance company to pay for your repairs less depreciation. Over time, the value of your home will depreciate, but the services it takes to repair your home to like-new standards does not. Replacement cost will cover your property to the insurance limits you have chosen without factoring depreciation. In other words, you will get what you need for what it would cost today, not for what it is worth today.

What is an insurance binder?

An insurance binder is used as a temporary means of providing insurance coverage. Often times for new home buyers you are requested by your lender to provide an insurance binder for closing. This is to prove to the lender that you are in the process of insuring the property. It is important that your binder lists the coverage offered within the quote you have received, as well as the annual premium amount before presenting you binder to your lender. With years of experience, we have solidified pre-approved insurance policy that we can issue binders for quickly and effectively. Contact one of our agents today to provide your new home with the coverage you need.

What is an insurance deductible?

An insurance deductible is the amount of money you and your insurance company agreed upon in order to issue payment for a claim resulting in a loss settlement. A deductible is either subtracted from your loss settlement, or paid as an out-of-pocket expense in order to receive your loss settlement. Insurance deductibles can be in the form of a dollar figure or a percentage of a limit of insurance. It is important to understand what deductibles are present within your policy, as it is common to have different deductibles for different situations. Check with one of our insurance agents today to discuss your current deductibles and whether or not there is a better deductible available to you.

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South Texas Insurance Services
3911 N 10th St., Suite J
McAllen, Texas 78501
Ph: 956-618-3535
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Fax: 866-344-2957

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