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Shopping for Home Insurance. Essential Tips to Save Money and Protect Your Investment
Jennifer Hernandez • October 30, 2024
Home insurance is a must-have for homeowners, but with rising premiums and countless options, finding the right coverage can feel like an overwhelming task. After facing a sudden 30% premium increase on my own policy last year, I took the time to shop around, gathered advice from friends, and ultimately saved an additional 15% by comparing quotes. The process took some work, but the payoff was significant. In this post, I’ll break down key strategies to help you make an informed decision, including expert insights from Kathy Leger of Leger Insurance in Texas. Whether you’re renewing, buying a new policy, or simply wanting to understand your options, these tips will guide you through the essentials of finding cost-effective, dependable home insurance.
Tip 1: Understand Admitted vs. Surplus Lines Carriers
One of the most critical aspects of choosing a home insurance policy is understanding the difference between admitted and surplus lines carriers. According to Kathy, this distinction is especially important in Texas:
- Admitted Carriers are approved by the Texas Department of Insurance. They are financially regulated, meaning they must meet specific financial stability requirements and get approval for their rates. These carriers also follow state protocols for protecting policyholders if financial difficulties arise.
- Surplus Lines Carriers lack these regulatory safeguards. While they may offer competitive rates or insure hard-to-cover properties, they aren’t bound by the same state regulations and can technically leave the state without responsibility to policyholders. In the worst-case scenario, this can mean canceled policies or unpaid claims.
How can you tell the difference? When reviewing a quote, look for additional taxes or fees near the premium amount. These indicate a surplus line carrier. Also, agents are typically required to explain that a carrier is surplus if they are presenting this option, so don’t hesitate to ask for clarification to avoid unexpected risks.
Tip 2: Determine the Right Deductible for Your Budget
Your deductible is the amount you pay out-of-pocket before your insurance coverage kicks in for a claim. Kathy advises carefully choosing a deductible that fits within your budget. Opting for a higher deductible often results in a lower premium, but this also means you’ll need to cover a larger portion of the cost in the event of damage. For instance:
- Example: If your home’s replacement cost is $500,000 and you select a 2% deductible, you’ll be responsible for $10,000 before insurance covers the rest. This can be a manageable way to keep premiums down, but ensure you’re comfortable with the deductible amount you select.
While a higher deductible can reduce your monthly premium significantly, make sure it’s a choice you can handle financially in case you need to file a claim. Consider building an emergency fund to cover your deductible if you’re opting for a larger amount. This strategy allows you to benefit from lower monthly premiums without the risk of scrambling to cover repair costs.
I go more into detail about insurance deductibles in this Article.
Tip 3: Why to Avoid Self-Insuring, Even if You Own Your Home Outright
Some homeowners think self-insuring—skipping insurance altogether—is a cost-effective choice, particularly if they own their homes outright. However, Kathy strongly cautions against this approach. Even if your mortgage is paid off, insurance provides essential protection for your asset.
While going without insurance might save you money upfront, it could lead to significant financial hardship if disaster strikes. Kathy emphasizes that even if you’re willing to shoulder some financial risk by opting for a higher deductible, going without insurance entirely is rarely wise. The policy essentially acts as a safeguard, allowing you to recover from major damage or loss without draining your savings.
You can look into replacement cost vs. guaranteed replacement to provide yourself at least a little bit of protection.
Tip 4: Don’t Be Lured by the Cheapest Policy
It’s tempting to go for the lowest premium available, but Kathy stresses that “the cheapest isn’t always the best.” Low premiums can indicate potential issues like limited coverage, hidden fees, or poor claim payouts. Just as with any major purchase, focusing on value over price is essential when insuring your home.
Kathy compares choosing an insurance policy to selecting a contractor or buying a car. The cheapest option may cut corners, offer minimal service, or simply leave you in the lurch when you need help. She advises homeowners to remember that a quality policy is a promise—not just a piece of paper. If a carrier’s rates are surprisingly low, ask yourself, “What is being sacrificed to meet that price point?”
Tip 5: Ask Your Agent the Right Questions
When evaluating home insurance options, the questions you ask can significantly impact the quality of your policy. Kathy provides us key questions to ask your agent to ensure you’re getting the best coverage for your needs:
- What type of policy are you recommending, and why? This will help you understand your coverage options and why your agent suggests certain terms.
- What happens if I need to file a claim? Will the agent or their team help you with the claims process? This can save you a lot of time and stress in the long run.
- What happens if my renewal rate increases? There’s a big difference between agents who represent a single carrier/insurance company and independent agents who work with multiple insurance companies. An independent agent has more flexibility to find a better rate if your current policy becomes too expensive at renewal. If you’re working with an agent who can only offer one company’s policies, your options for renegotiating a better renewal rate may be limited.
- How long has the carrier been operating in my state? It’s important to know that your carrier is stable and committed to serving your area. Even well-established companies can enter and exit specific states, so ensuring they’re committed to your area is important.
- What is the claims satisfaction rate? Independent agents can often provide important information into a carrier’s reliability when it comes to claims. Some companies are notorious for delaying or denying claims, so asking your agent for a candid perspective on the carriers they work with can save you headaches down the line.
The Value of Working with an Independent Agent
One of the most valuable pieces of advice from Kathy is to work with an independent insurance agent. Independent agents are not tied to a single insurance company, so they can shop around on your behalf, offering multiple options that suit your budget and coverage needs. Their commitment is to you, not a particular carrier, which provides the advantage of flexibility, particularly if your renewal rate rises. Independent agents also bring experience from working with various insurers and are well-positioned to advise you on which companies are known for reliable claims processing. Save yourself time and money, and let an independent insurance agent find the best policy for you.
Learn more about the different types of Insurance agents.
Protect Your Investment with Smart Choices
Whether you are a collector, or have personal items that are irreplaceable, your home holds valuables that make it your home. Home insurance is a fundamental part of homeownership, protecting not only the structure of your house but also all the items within your house that make it your home. By understanding the different types of carriers, choosing a deductible that fits your budget, and working with an independent agent, you can find a policy that offers both peace of mind and financial security. Instead of automatically choosing the lowest premium, remember that your home deserves high-quality protection.
Communicate with Your Lender
Lastly, inform your mortgage company of your new insurance company and policy. They will be informed when you cancel your policy, but not necessarily informed by the new insurance company that you have a new policy. The last thing you want to happen is for your mortgage company to put their own insurance policy on your house because they are unaware that you purchased a new coverage. If this happens, your mortgage payment will go up to cover the cost of the insurance plan your mortgage company purchased. Avoid this mistake and send your mortgage company a copy of your declarations page to show you have new home insurance.
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Buying a home is one of the biggest financial and emotional decisions you'll ever make. But how do you really know if you're ready? In this article, we’re breaking down five clear signs that you might be ready to buy a house—and one red flag that means you may want to wait. Whether you’re a first-time buyer or just testing the waters, this guide will help you move forward with clarity and confidence. Sign #1: You’re Financially Stable The first green light? Consistent income and job stability. If you’ve had a steady paycheck for at least two years (especially in the same industry), that’s a strong start. But it goes deeper than income: You should also have: An emergency fund covering at least 3–6 months of expenses Savings for a down payment (typically 3%–20% of the home price) Money for closing costs and moving expenses Pro Tip: Many buyers underestimate how much they’ll need after the down payment. Check out this mortgage planning article to avoid that mistake. Texas-Specific Tip: Texas has no state income tax—but property taxes are higher than the national average. Be sure to budget accordingly. You can estimate local taxes via the Texas Comptroller’s Property Tax site. https://comptroller.texas.gov/taxes/property-tax/rates/index.php Sign #2: You’ve Got Manageable Debt & Decent Credit Your debt-to-income ratio (DTI) and credit score directly impact your ability to qualify for a mortgage—and the rate you’ll get. A credit score above 620 is usually the minimum for most loan types The higher your score, the lower your interest rate—potentially saving you thousands over time If you're carrying high-interest debt, it might be wise to pause and reduce it before buying Your debt-to-income ratio is under 55%. Want to learn more? Watch How Your Credit Score Affects Your Mortgage . Sign #3: You’re Ready to Stay Put Buying a home makes more sense if you plan to stay in one place for at least 3–5 years. Why? Because selling a home comes with closing costs, commissions, and possibly capital gains taxes. If you move too soon, you may not have built enough equity to make it financially worthwhile. Ask yourself: Are you planning to stay in the same city or job? Do you feel ready to settle down a bit? Sign #4: You’re Ready for the Responsibilities of Ownership Homeownership isn’t just about finances—it’s a lifestyle shift. Are you ready to: Maintain a yard Handle repairs Budget for appliances or home upgrades These are everyday realities renters don’t usually deal with. If you’re ready to take that on, it’s a strong sign you’re ready to buy. Need a reality check? Watch The Real Cost of Homeownership for a behind-the-scenes look. Sign #5: You’ve Budgeted for the Full Cost of Homeownership It’s easy to focus just on your monthly mortgage payment—but that’s only part of the picture. You also need to budget for: Property taxes Homeowners insurance Maintenance and repairs HOA fees (if applicable) If you’ve run the numbers and still feel comfortable, you’re probably in good shape. Red Flag: You’re Buying Out of FOMO If your motivation to buy a house is: Everyone else is doing it You’re afraid of being priced out You feel pressured by social media or family Take a step back. Fear of Missing Out (FOMO) is not a solid reason to buy a home. Your decision should be based on your goals, your finances, and your lifestyle—not the market hype. Not Sure If You’re Ready? We’ve Got You Covered Download our free Homebuyer Readiness Checklist to see where you stand Check out our Blueprint to Homeownership course for a step-by-step guide through the buying process Bottom Line Buying a house isn’t something to rush—but with the right preparation, it can be one of the most rewarding decisions you ever make. If you feel financially stable, ready for long-term commitment, and confident in your lifestyle plans—you may be ready to take the next step. Have questions? Reach out here Book a 15 Mins Call and we’ll walk you through it. Want more clear, honest mortgage advice? Subscribe to Loan With Jen on YouTube
Think you can’t afford to buy a home? You might be surprised. The income you actually need may be lower than you think. In fact, most people are asking the wrong question entirely. In this post, we’ll break down: How lenders really decide what you qualify for A simple formula to estimate your price range Why your debt matters more than your income Plus—how first-time buyers get approved with less than you’d expect It’s Not Just About Income—It’s About Debt-to-Income Ratio (DTI) Most people think income alone determines your buying power. But lenders focus more on your Debt-to-Income Ratio (DTI) . Here’s how DTI works: Your total monthly debt ÷ your gross monthly income = your DTI Most lenders want this ratio to be 45% or lower , though some loan programs will allow more. This calculation includes: Your new mortgage payment Property taxes Insurance HOA fees (if applicable) Any car loans, student loans, or credit card minimum payments Example: Let’s say you make $75,000 per year—that’s $6,250/month gross income. 45% of that = $2,812 Now subtract your monthly debts: Car loan = $500 Credit card payments = $300 Total = $800 That leaves you with about $2,000/month for a mortgage payment. What Kind of House Does $2,000/Month Get You? With interest rates around 6.5% , that could get you a home priced at $260,000–$280,000 , depending on your: Down payment Property taxes Location HOA dues Of course, this is just an estimate. You can plug your numbers into a mortgage calculator to get a more accurate idea based on your location and situation. How Loan Types Impact Income Requirements Your loan program plays a big role in how much home you can afford. Here’s a quick breakdown: FHA Loans : Allow DTIs up to 50%, and only require 3.5% down VA Loans : For veterans—no down payment required and very flexible income requirements Conventional Loans : Stricter guidelines; usually require 43–45% DTI and 3–5% down USDA Loans : No down payment, but must be in eligible rural areas and meet income caps And remember— a larger down payment means a smaller monthly mortgage , which helps you qualify for more. Credit Scores and Reserves Matter Too Even if you qualify on paper, your credit score and cash reserves play a key role: Higher credit score = lower interest rate = lower monthly payment Reserves are how much money you have in the bank after closing. Many lenders require at least 1–2 months of mortgage payments in reserves. Even if your income is borderline, having reserves can tip the scales in your favor. Real Buyer Stories: It’s More Possible Than You Think Story 1 : A couple earning $90K/year thought they needed to wait because of student loans. But with FHA, 3.5% down, and minimal other debt, they got approved for $325K—and closed on a home last month. Story 2 : A single teacher earning $52K/year bought a $210K condo using just 3% down and a first-time buyer grant. She didn’t think she qualified—until she did. Don’t Forget Side Income or Co-Buying You might qualify for more than you think if: You co-buy with a spouse, parent, or sibling You have side income (Uber, freelance, small business) that’s been on your taxes for at least 2 years That extra income can help you get approved. The Formula: Estimate What You Can Afford Here’s a quick formula to ballpark your buying power: Take your gross monthly income Multiply by 0.45 (max DTI) Subtract your monthly debts The remainder is your max mortgage payment (including taxes & insurance) Use a mortgage calculator to plug in that number and see what home price you might qualify for. Online mortgage calculators don’t take tax or insurance into consideration most times, but this will give you a ballpark figure. Before you get your heart set on a house though, reach out to a lender to find out your true buying power. It costs you nothing to get this information! Bottom Line: You Probably Don’t Need Six Figures to Buy a Home Most buyers are surprised by what they can afford. The key is understanding how lenders look at your full financial picture—not just your income. You don’t have to guess. And you don’t have to go it alone. Next Steps Take our FREE Blueprint to Homeownership course for a step-by-step guide Reach out to our team for a free strategy call —we’ll help you crunch the numbers and create a plan If you found this helpful: Subscribe to the Loan With Jen YouTube channel for weekly tips
You’re not starting over—you’re starting fresh. And yes, you can buy a home after a divorce. If you’re navigating a divorce or separation, I want to start with this: Big hug. Big kiss. This season of your life might feel uncertain or overwhelming, but you’re not broken. You’re rebuilding—and I’m here to help. Let’s walk through the 5 most common mistakes people make when trying to buy a house after divorce —and how to avoid them. 1. Your Credit Tells the Real Story—Not Just the Divorce Decree Here’s what most people miss: Even if a divorce decree says your ex is responsible for a shared mortgage or credit card, your name on the account means it’s your responsibility in the lender’s eyes. That means: Late payments by your ex will still hit your credit. A mortgage that your ex was supposed to refinance but didn’t? Still counts against your debt load. What to do: Pull your full credit report from all 3 bureaus : Experian, Equifax, and TransUnion Review all joint accounts : Are they closed? Paid off? Still open? Check if your ex has refinanced you off the mortgage —don’t assume, verify! Collect documentation if the mortgage responsibility was transferred Pro Tip: As a lender, I can do a soft credit pull for you—no ding to your score—to identify red flags before you apply! 2. Income After Divorce—What Counts (and What Doesn’t) Post-divorce income can be complex. Whether you're earning on your own or receiving support payments, lenders need proof of stability and consistency . What lenders typically require: W-2 income or 2 years of self-employment returns At least 3–6 months of child support or alimony payments (with documentation) A copy of your final divorce decree or court-ordered support agreement Watch out for: Informal payments (Venmo, cash) with no paper trail Newly ordered support that hasn’t been received yet Significant drops in income—these must be accounted for Pro Tip: If your income has decreased after divorce, we can explore co-borrowers, grants, or flexible loan programs to help you qualify. 3. The Old Mortgage Can Haunt You (Even If You Don’t Live There) Even if your ex is living in the home and paying the mortgage, if your name is still on the loan, it counts against your debt-to-income ratio. This can affect how much you qualify for—even if you’re renting now or planning to buy something smaller. How to handle it: Ask your ex to refinance the home and provide a release of liability from the lender. Ask the lender - before you are off the loan and still authorization to speak to the lender - to provide you with instructions on how to receive a release of liability. If refinancing isn’t happening, collect 12 months of canceled checks or bank statements showing your ex is paying from their own account If those options aren’t possible, you may need to wait until the home is sold or work with a lender who understands how to navigate this scenario 4. Don’t Skip the Emotional Prep—Buying a Home Is a Big Deal Divorce doesn’t just impact your finances—it affects your emotions, too. Even if you're financially ready to buy, make sure you’re mentally and emotionally ready to take on homeownership again. This is especially true if you're moving from a home that holds memories or are co-parenting with children. Ask yourself: Am I rushing to buy just to feel “settled”? Is this home choice based on my new lifestyle , not my old one? Do I have the support system and clarity to take on this responsibility? Mindset Tip: Your next home should support your fresh start , not keep you tied to the past. You’re building your life now—on your terms. 5. Timing Is Everything—Don’t Rush the Process After a divorce, it’s tempting to try and “fix” everything fast. But buying a home is a major financial move, and sometimes waiting just a few months can make a big difference. Reasons you may want to pause briefly: Waiting for credit to improve Gathering more documentation or saving for a down payment Giving support payments time to become “seasoned” (most lenders want 3–6 months of consistent payments) That said, you don’t have to put your life on hold forever. The key is working with someone who knows the post-divorce lending landscape and can help you make informed choices. You’re Not Alone—And You Can Do This Whether you're newly separated or a year into your new chapter, you deserve a place to call your own. And you don’t have to navigate this alone. Ready to get started? Here are your next steps Get a free credit and income readiness review —just message me Take my Blueprint to Homeownership course if you want a full step-by-step roadmap. You’ve got options. You’ve got support. And most importantly—you’ve got this. I’m here to help you rebuild with confidence. Let’s find your fresh start.
Did you know that buying a home doesn’t just build equity… it actually lowers your tax bill every single year ? Whether you're a first-time homebuyer or looking to grow your investment portfolio, real estate offers powerful tax advantages that most people don’t even realize exist. I even have a legal strategy that helps real estate investors defer taxes on hundreds of thousands of dollars in profit. Why Does Real Estate Have So Many Tax Perks? Simple: The government wants you to buy real estate. Homeownership and property investment fuel the economy, so the IRS offers major tax incentives just for owning property. But many people miss out on these benefits—either because they are unaware or didn’t plan ahead with a qualified professional. Tax Benefits for Homeowners (Primary Residence) If you’re buying a home to live in , here are the top 3 tax perks you need to know: 1. Mortgage Interest Deduction You can deduct the interest portion of your mortgage —which is a huge portion of your payment in the early years. For most people, the deduction applies to loan amounts up to $750,000 (if married filing jointly). Fo example, if your loan is $400,000 at 6% interest, you’re paying ~$24,000 in interest your first year—most of which may be deductible. 2. Property Tax Deduction You can deduct state and local property taxes , up to $10,000 per year (or $5,000 if married filing separately). While not as generous as it once was, it’s still a meaningful deduction, especially in higher-tax areas like Texas . For Texas-specific property tax resources, check out the Texas Comptroller’s Property Tax Help page. https://comptroller.texas.gov/taxes/property-tax/ 3. Capital Gains Exclusion When you sell your primary home, you may be able to exclude up to $250,000 of the profit (or $500,000 if you are married) from capital gains tax. The catch: You must have lived in the home for at least 2 of the last 5 years. That means if your home appreciated $400,000 and you're married—you could pay zero tax on that gain! Watch: How to Avoid Capital Gains Tax on Your Home Sale Tax Benefits for Real Estate Investors This is where the real tax magic happens. As an investor, you’re not just earning income—you’re tapping into one of the most tax-advantaged asset classes in the country. Here are five big tax breaks available to real estate investors: 1. Depreciation Even if your rental property is appreciating in value, the IRS lets you “pretend” it's losing value for tax purposes—this is called depreciation . A $275,000 rental property (excluding land) can generate $10,000/year in depreciation —offsetting your rental income on paper and lowering your taxable income.
If you're planning to buy a home in the U.S. and you're currently on a work visa or other visa status , this news directly impacts you. As of March 26 , the FHA (Federal Housing Administration) announced it will no longer accept applications from visa holders , regardless of the type of visa. This change may come as a shock, especially if you’re in the middle of the homebuying process or have already been pre-approved. Let’s break down what this means—and what options are still available to you.