The Only Thing Constant Is Change

There are two significant changes taking place in the real estate industry this month.

One will save you money, and one will cost you some money.

Sadly, you will pay more than you will save with these changes!

Changes to Homeowner's Insurance Deductible Payments on Roof Replacement.

Starting September 1, the new Texas House Bill 2102 goes into effect. This bill is designed to curb the abuses by the roofing industry of covering the homeowner's deductible by absorbing or rebating that money as part of the contract to replace the roof.

Insurance companies now require proof of payment of the deductible before they will pay off the holdback on an insurance claim.

The law will help reputable roofing contractors compete and do the right thing. It will also protect consumers from the predatory businesses that have been skirting around the law for years. When making repairs to your roof you need to ensure the following:

  • Repairs are done correctly
  • Repairs are completed by a local company
  • Repairs are covered by a transferable warranty

However, this new law will hurt homeowners who do not routinely hold back an emergency fund for such purposes. Thankfully I have met with several roofing companies that are already addressing this issue. They have worked out programs to help consumers finance the deductible.  When you have a 2% deductible on a $500,000 home, it will be hard to fork out that $10,000 per claim. 

Changes to Texas Title Insurance Rates

The other change happening in the industry this month is a change to Texas Title rates. Title insurance is taken out with every home purchase. The seller usually pays for this product.

The Texas Commissioner of Insurance issued the rate change earlier this year. Get this! The rates are going DOWN.

Many factors influenced this decision, but leading the way was the increase in home values. It is an excellent indicator of the strength of the Texas economy. It is also a welcome change for many sellers. Take a look at the new rates here