Home Insurance McKinney TX

McKinney Texas New House
Home Insurance - McKinney, TX

Homeowners in McKinney know finding the best home insurance isn't always easy. Your home is often your most valuable asset, so it pays to make sure your home insurance adequately covers you. That's why we built this helpful guide for those looking to review or buy home insurance:

  1. The average cost of home insurance in McKinney, TX
  2. Common home insurance claims in McKinney, TX
  3. Coverage details of your home insurance policy
  4. Insurance carriers offering coverage in McKinney, TX
  5. Calculator for home insurance quotes in McKinney, TX

1.  The average cost of home insurance in McKinney, TX

The best strategy for finding cheap home insurance in McKinney is making sure you get all the home insurance discounts you deserve.

We search for all discounts for our customers for free. Most customers that use Young Alfred in McKinney pay between $1,286 and $2,673 per year for their home insurance coverage.
McKinney TX homeowners pay between $1286 and $2673 for home insurance
The average home insurance in McKinney is $1,921.12. This annual rate will change as the cost to rebuild your home increases. As your home goes up in value, you need more insurance coverage, which also costs more. You should be happy to get coverage below $1,286/year in McKinney and expect to pay an extra $184/year for every $100,000 increase in your home's value.

Home Insurance Rates in McKinney, TX vs. Home Rebuild Cost
home insurance rates in McKinney TX
Home insurance rates data generated from the following zip codes: 75013    75069    75070    75071    75072    75454

2. Common home insurance claims in McKinney, TX

McKinney has a high risk of tornado and hail damage. Here is an example risk report for a McKinney home address.

McKinney, TX Home Risk Report
home risk report for McKinney TX home
Source: Home Risk Report

When a type of claim is more common in a specific region, you will find more insurance carriers begin to carve away that coverage. Texas is known for many wind claims, and so carriers in the area offer high wind deductibles by default. Reducing coverage gets back to the primary driver of consumer purchase behavior: Price. If you do choose the cheaper policy, make sure you aren't sacrificing valuable coverage just to save a few bucks.

3. Coverage details of your home insurance policy

Each homeowner should understand the six major coverage categories.

  1. Coverage A: Dwelling - covers your primary building structure.
  2. Coverage B: Other Structures - covers any structures on your property not attached to your primary home's structure.
  3. Coverage C: Personal Property - covers your personal belongings with special sub-limits for specific categories.
  4. Coverage D: Loss of Use - if you can't live in your home after a covered loss, this helps cover your cost of living somewhere else.
  5. Coverage E: Personal Liability - if someone sues you for something that happened on your property, this will kick in to defend the lawsuit and payout on damages charged in the case.
  6. Coverage F: Medical Liability - if a guest injures themselves on your property, this can cover the guest's medical expenses from that injury.

More importantly, homeowners in McKinney, TX, should know the five specific coverage details of their home insurance policy:

  1. Water Damage
    Water damage represents a third of all homeowners claims. Insurance companies break up water damage into many different categories, only some of which are covered by your standard insurance policy.

    Flooding - not covered in your standard homeowners policy, but can be purchased as a separate policy from NFIP or Private Flood Companies.

    Water Damage from a Burst Pipe - usually covered in your standard homeowners policy. You are not covered if they are leaking slowly over time. 

    Water Backup Coverage - not covered in your default home insurance policy, but can be purchased as an additional add-on. 

    Storm-Related Water Damage - covered in your standard homeowners policy if the water enters from above the ground level.

    Water Seepage/Groundwater - not covered in your standard homeowners policy, can sometimes be purchased as an add-on coverage.
  2. Foundation Coverage
    Texas homeowners insurance policies typically exclude foundation coverage. This is because the geological makeup of Texas is mostly clay, which is prone to shifting. You can usually buy a water & foundation endorsement that covers 15% of your Coverage A or up to a $25,000 limit. I highly recommend this to protect against those costly slab leaks
  3. Wind/Hail Deductible 
    There are two types of deductibles quoted on home insurance policies: 

    Percent-Based Deductible (2%, 3%, 5%, 10%) 
    Percentage-based deductible means that your deductible is a percentage of the coverage A on the policy.

    $300,000 of dwelling coverage 
    2% deductible
    You pay for the first $6,000 ($300,000 * 2%) of damages to your home before the insurance company steps in. In Texas, these % deductibles attach to special perils, like a Hurricane Deductible or Wind/Hail Deductible.

    Dollar-Based Deductible ($500, $1,000, $2,500, $5,000, $10,000) 
    You pay a set $ amount anytime you file a claim, and the insurance company pays that claim. The most common deductible is $1,000. 

    $300,000 of dwelling coverage 
    $1,000 deductible
    You pay for the first $1,000 of damages to your home before the insurance company covers repairs.

  4. Roof Coverage: Replacement Cost or Actual Cash Value
    An asphalt shingle roof needs updates once every 20 years. If you have an older roof, your home insurance policy may only cover the roof at Actual Cash Value (ACV). Actual cash value means you aren't getting a full reimbursement on your roof in a claims scenario.

    Example: Your roof is 19 years old, and you have a hail storm that damages the roof beyond the point of repair - you now need a new roof. The insurance company is not going to cut you a check for a brand new roof if it is covered at ACV because you were going to have to replace the roof in the next five years, even without the storm. They will give you a check that represents the remaining useful life of your roof. If the roof is 19 years old, has a 25-year useful life, costs $15,000 to replace, and you have a $1,000 deductible, you are only going to get a check for (25-19)/25*15,000 - $1,000 = $2,600. If your roof is covered at Replacement Cost, you are getting a check for $15,000 - $1,000 = $14,000. In this common example, the Replacement Cost Coverage on your roof was worth an extra $11,400. 
  5. Animal Liability
    In addition to an unusually high number of tigers in Texas, there are also plenty of dangerous dogs. We know, bad dogs are usually not a function of the breed, but a lousy owner. However, insurance carriers do not have a way to change pricing based on the quality of the dog owner yet, so they use dog breed as a rating factor in their pricing models. As the average dog bite claim is ~$35,000, you may want to check if animal liability coverage is being excluded on your policy if you own a dog.

4. Insurance carriers offering coverage in McKinney, TX

Many carriers are competing for your business in McKinney, TX. Home insurance carriers rate on many different risk factors, so it is best to check multiple carriers to see which carrier is the best match for you. Regardless of what carrier you choose, you should at least consider the following:

  • Financial Stability Rating - AM Best or Demotech
  • Experience in the local market - how long have they been insuring McKinney homes?
  • Online Reviews on claims and customer service experience

Top home insurance carriers in McKinney, TX:

Insurance Company Financial Stability Experience Online Reviews
Progressive AM Best A+ Experienced 4 stars
Hippo AM Best A- New 5 stars
State Auto AM Best A- Experienced 4 stars
Travelers AM Best A+ Experienced 5 stars
SafeCo (Liberty Mutual) AM Best A Experienced 4 stars
Encompass (Allstate) AM Best A+ Experienced 5 stars
Foremost (Farmers) AM Best A Experienced 3 stars
Mercury AM Best A Experienced 4 stars
USAA AM Best A++ Experienced 5 stars
State Farm AM Best A++ Experienced 4 stars
Stillwater AM Best A- Experienced 5 stars
Velocity AM Best A New 4 stars
Towerhill AM Best A- Experienced 5 stars
Lighthouse AM Best A- New 3 stars

5. Calculator for home insurance quotes in McKinney, TX

A home insurance calculator requires many inputs as insurance carriers rate on hundreds of factors. Most of these rating factors usually fall into three main rating categories:

  1. Property features (location, age, heating, etc.)
  2. You and your family (credit history, claims history, pets, etc.)
  3. Coverage limits and endorsements (deductibles, water backup, replacement cost, etc.)

To get accurate quotes: fill out my custom online home insurance application. Young Alfred does not call or sell your information. We have built an advanced quoting engine that generates the top home insurance quotes in your area, customized for you:

Get Home Insurance Quotes in McKinney TX

I hope that helps!

At your service,
Young Alfred