Henrich Insurance Group

Houston Home InsuranceHouston Home insurance can be complicated. In this economy, everyone wants to save a buck, but bare-bones insurance can end up costing you more than you know. Saving money won’t save you from disaster. It’s important to weigh the pros and cons of cheap home insurance, seeking out the policy, not the price, that’s right for your home. Cheap may be defined as low in cost, but it can also be defined as shoddy.

Homeowners insurance policies are ranked from 1-8. HO-1 is a basic policy, while HO-8 covers historical and older homes. HO-3 covers structure and perils, while HO-4 covers renters.


HO-1 is the absolute cheapest homeowner’s insurance available on the market today. Many states have disallowed this policy, simply because it doesn't cover much and can be confusing to some homeowners. To determine if this inexpensive insurance is available in your area, check with your insurance agent.


  1. Inexpensive
  2. Provides liability insurance, in case an accident occurs on your property and you’re liable for the damage.


  1. Discontinued in a number of states, because it’s not broad enough
  2. Only covers 11 perils
  3. Does not protect your stuff

In order to determine which policy is right for your home, you have to consider your risks. Saving money should be a priority, but you’ll regret it if your home is ravaged by a storm and you’re left with nothing and no coverage. Once you've assessed your home’s value, you can begin adding and deducting coverage. Consider only purchasing the coverage you need, for the best price.

How to Get an Inexpensive Rate without Sacrificing Quality

Shopping around is a great way to save money on insurance costs. As a pro, shopping around can result in real information and low rates, that reflect your policy needs. More than just costs, you’ll want to consider what your home requires.

Structural Coverage is necessary for most homes, but many people make the mistake of purchasing too little of this coverage. It’s recommended to purchase 100% Structural Coverage. In order to save on Structural Coverage, choose to have your compensation paid out as cash value, instead of the more expensive replacement cost compensation.

Do you own expensive things? Most people overlook the value of Personal Property Coverage. Your things hold value, but if they’re lost in a fire, they’re gone forever. You won’t be able to recoup this loss, unless you’re covered by Personal Property Coverage. A major pro of this coverage is that it can help you repurchase clothing, electronics, furniture and more. A con is that it will raise your insurance rates.

You don’t want to insure your home without Liability Coverage. Unless you never have guests at your home, liability is a benefit to you. If someone is injured in your home and you’re sued, liability covers your legal fees and their costs. The major con here is that the more assets you have, the more liability coverage you’ll need. The more coverage you need, the more expensive your insurance will be.

If you don’t live in an area that is known for frequent natural disasters, you can probably forgo the cost of Off-Premises Coverage. If you do live in a high-risk area, you will want to consider the added protection of Off-Premises Coverage. This is a very positive insurance inclusion, as it pays your living expenses should your home become uninhabitable. The con is this insurance only pays out when the home has become uninhabitable due to one of the listed perils. Read your policy closely to determine what these perils are and if they’re relevant to your situation.

The Bottom Line

When it comes to homeowner’s insurance, you don’t want the cheapest rate. You want the best policy at the lowest possible cost. Save money by bundling, comparing rates and seeking out discounts. To learn about which discounts and bundles may be available to you, call a Henrich Insurance Group agent today at 877-349-0200. Don’t sacrifice much needed coverage, because this can end up costing more in the long run.

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