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Home Quote Evaluation

Got a quote? Read this before you sign.

Eight questions every Established Homeowner should ask. The traps most quotes hide. The paid-off home mistake nobody warns you about. How to compare contracts to contracts — not premiums to premiums.

How do I know if my home insurance quote is actually a good quote?

Compare contracts to contracts, not premiums to premiums. Eight questions separate a real quote from a race to the bottom: Replacement Cost or ACV roof. Named or Open Perils. Insured to Value. Deductible match to your family. Water damage limits. Insurability. Admitted or Excess and Surplus paper. Carrier financial stability. Most quotes fail at least three of these. The right one passes all eight. And if you just paid off your mortgage, the questions get harder, not easier.

The Truth About Cheap Quotes

Insurance carriers make money two ways.

"There is no best carrier. Only the best carrier for your home, your location, and your needs. The question is not who is cheapest. The question is who is right."

Playbook One

Race to the Bottom.

Cut coverages. Default to ACV roof. Cap water damage at $5,000. Quote non-admitted paper. Hide the contract details behind a low premium. Win the click. Hand the client a six-figure surprise on claim day.

This is how most quotes get cheap. Not by underwriting smarter. By writing thinner.

Playbook Two

Write Better. Service Longer.

Match the right home to the right carrier. Underwrite tight. Pay claims fast. Build a 15-year relationship instead of a 15-month policy. Earn referrals because the contract held when it had to.

McDade only works with carriers running this playbook.

The Verdict

Anything can be made cheaper by making it worse.

Every cheaper quote is a quieter promise.

Apples to Apples · Contracts to Contracts

Eight questions worth asking.

"If your agent did not ask you these questions, your quote was not built around you. It was built around the carrier."

Question 01

Is your roof written as Replacement Cost or Actual Cash Value?

Replacement Cost (RCV) pays to put your roof back the way it was. New for old. Like kind and quality.

Actual Cash Value (ACV) pays the depreciated value of your roof at the moment of loss. The older the roof, the smaller the payout.

The TDI math example The Texas Department of Insurance gives this exact example: a 10-year-old roof costs $10,000 to replace. Under RCV with a $2,000 deductible, the carrier pays $8,000. Under ACV, the depreciated roof is valued at $7,000, the carrier pays $5,000 minus your $2,000 deductible, and you pay the rest of the new roof yourself. Out of pocket: $5,000 vs $2,000.
The Bankrate $60,000 roof example Bankrate (July 2025) walked through a $60,000 roof installed 10 years ago, depreciated by $25,000. After a $1,500 deductible, ACV pays $33,500. RCV pays $58,500 for the same loss. Difference: $25,000 out of your pocket.

Many Texas carriers in 2026 default to ACV roof on homes with roofs over 10 years old. Industry sources document the typical depreciation schedule: 0–5 years 100%, 6–10 years 80%, 11–15 years 60%, 16–20 years 40%, 21+ years 20%. Most clients never see this on the quote unless someone shows them.

Red flag Quote shows "ACV roof" or "Roof Payment Schedule" with depreciation. If your roof is 10+ years old and you are not actively planning to replace it, you are signing up for a five-figure surprise after the next hailstorm.

Sources: Texas Department of Insurance, Replacement Cost vs Actual Cash Value Guide · Bankrate, Roof Insurance ACV vs Replacement Cost (July 2025) · 2026 Texas Roof Insurance Guide, HB 2102 Context

Question 02

Is your policy Named Perils or Open Perils?

Named Perils only covers losses specifically listed in the contract. If it is not on the list, it is not covered. The burden of proof is on you, the homeowner.

Open Perils covers everything except what is specifically excluded. The burden of proof is on the carrier.

On the Gulf Coast, the practical difference is one phrase: wind-driven rain.

The Hurricane Ike pattern After Hurricane Ike, Houston-area clients with named-perils policies in Pasadena, Clear Lake, Webster, and League City filed claims for interior water damage where there was no clearly visible "hole" in the home. Carriers ruled the cause was wind-driven rain — not a covered named peril — and homeowners paid out of pocket. The same storm. The same city. Different policy form. Six-figure outcomes.

Open Perils policies typically cover wind-driven rain when wind first creates an opening in the home. Named Perils policies typically do not. After a hurricane, that distinction is the difference between a covered claim and a six-figure restoration paid out of your pocket.

Most standard HO-3 policies cover the dwelling on an Open Perils basis but cover personal property on Named Perils only. HO-5 extends Open Perils to personal property as well, which is why high-end homes typically need an HO-5.

Red flag Quote does not specify Open Perils on dwelling and other structures. If the policy form is HO-2 or any "Named Perils" variant, ask why. Established Homeowners on the Gulf Coast typically need HO-3 minimum. HO-5 is often better for high-value contents.

Sources: Kicker Insurance, Named Peril Coverage After Hurricane Ike · Richey Insurance, Named vs Open Perils · Amwins, Storm Event: When Multiple Water Perils Intersect

Question 03

Are you Insured to Value?

Insured to Value means your dwelling limit reflects what it would cost to rebuild your home from the foundation up at today's construction prices. Not your purchase price. Not your tax appraisal. Your actual rebuild cost.

Industry research published in 2026 confirms construction costs in Texas have risen 25 to 40 percent higher now than 2019 due to material inflation, labor shortages, and tighter building codes. A home insured at 2020 dwelling limits can be underinsured by a quarter of its rebuild cost today.

The Hurricane Harvey Corpus Christi case The Martinez family in Corpus Christi held a $180,000 dwelling limit that seemed adequate when they purchased it five years before Harvey. After the storm, new building codes and increased construction costs meant rebuilding required $240,000. Their carrier paid the policy maximum. The family was personally responsible for the $60,000 gap.
The Federal Reserve Bank of Dallas finding (2026) Recent Dallas Fed research confirms that homeowners limiting coverage to save money are becoming underinsured, often without realizing it. Reduced coverage limits and increased deductibles are listed as the most common saving strategies — and the most common path to a six-figure shortfall after a total loss.

If your home is underinsured at the time of a total loss, the coinsurance penalty can reduce your claim payout substantially. You bought a policy. You did not buy enough policy.

Red flag Dwelling limit is unchanged from your last renewal but Texas reconstruction costs have risen. If your agent has not run a current replacement cost estimator in the last 18 months, your home may be underinsured. McDade pressure tests this on every quote.

Sources: Federal Reserve Bank of Dallas, Texas Homeowners Insurance Affordability (2026) · Schell Insurance, 5 Texas Homeowners Insurance Gaps to Fix (2026) · Merlin Law Group, Texas Hurricane Underinsurance Cases

Question 04

Is your deductible set for you, or for the carrier?

A higher deductible lowers your premium. That is true. It is also incomplete.

The Texas Department of Insurance notes that switching from a $500 to a $1,000 deductible can save up to 20 percent on premium. What TDI also warns: think about how much you can actually afford to pay if your house is damaged.

The Texas hurricane deductible math Hurricane and wind/hail deductibles in Texas are typically percentage-based, often 1 to 2 percent of dwelling value, not flat dollar amounts. On a $300,000 dwelling, a 2 percent hurricane deductible is $6,000 out of pocket before any coverage applies. On a $750,000 dwelling, it is $15,000. On a $1.2 million dwelling, it is $24,000. Most clients have never seen this calculation on the quote.

The right deductible matches what your family can comfortably absorb without strain. Just because you have $30,000 in savings does not mean you value spending what you have earned on a deductible.

The right question is not what you can afford to pay. It is what you would actually want to pay. If your agent never asked the question, your deductible is set for the carrier's benefit. Not yours.

McDade asks the question before we quote. That is the difference between a broker and a salesman.

Sources: Texas Department of Insurance, Home Insurance FAQ · Insurance.com, Texas Hurricane Deductible Guide (2025)

Question 05

What are your water damage limits?

This is the number one coverage Texas carriers are quietly cutting in 2026. The most important question on this entire page.

Water damage means everything from a burst pipe to a slab leak to a backed-up sewer line to a hot water heater failure to roof leaks during a storm.

The frequency: 1 in 60 homes Industry data shows about 1 in 60 insured homes files a water or freezing damage claim every year. Water damage is the second most common home insurance claim behind wind and hail, accounting for nearly 30 percent of all home insurance claims nationally.
The cost: average $13,954, but high-end homes run far higher The average insurance claim payout for water damage runs $13,954 nationally. In Houston specifically, slab leak repair plus restoration on a high-end home routinely runs $40,000 to $80,000 or more, because moisture under concrete slabs requires specialty drying mats that add $500 to $2,000 per job, and hardwood replacement runs $8 to $25 per square foot.

Many new policies cap water damage coverage at $5,000 or $10,000. The math does not protect you. A single slab leak on a 4,500 square foot Houston home can hit $80,000 before remediation, drying, and reconstruction.

Red flag Quote has a water damage sublimit (often labeled "limited water damage" or "scheduled water damage") and your home is over 15 years old. You are one slab leak from a six-figure out-of-pocket loss. Pressure test this number before you sign anything.

Sources: 24/7 Restoration Specialists, Houston Water Damage Cost (2026) · Water Damage Statistics 2026 Industry Data · Texas Water Backup, Service Line, Foundation Coverage

Question 06

Is your home actually insurable with that carrier?

Carriers have appetites. Some love newer construction. Some run from older homes. Some will not write coastal exposure. Some specialize in high-value properties. Some cap dwelling limits at $750,000.

A quote can look great on paper and still be the wrong carrier for your specific home. Insurability is not just whether they will write you. It is whether they will keep writing you year over year as your home ages, your roof ages, and the carrier's appetite shifts.

The Texas market exits 2024–2026 The Texas market between 2024 and 2026 saw multiple carriers exit, restructure, or stop new business. Foremost Insurance (a Farmers division) ceased writing and renewing new policies just weeks before Hurricane Beryl. Progressive stopped writing new homeowners policies in Texas in 2024 after the company reported that storms in Texas accounted for nearly 40 percent of its losses in Q2 fiscal 2024. Liberty Mutual implemented restrictive underwriting in coastal counties. Lemonade stopped selling new homeowners policies in several Texas counties.

McDade matches your home to a carrier whose appetite fits long-term. Not the carrier with the cheapest first-year premium. If the carrier exits Texas a year after you sign, your relationship with that carrier ends. McDade's relationship with you continues.

Sources: Insurance.com, Texas Home Insurance Crisis 2025 · Texas Carrier Exits 2024–2025 Industry Brief

Question 07

Is your carrier admitted, or non-admitted Excess and Surplus?

Admitted carriers are licensed by the Texas Department of Insurance and backed by the Texas Property and Casualty Insurance Guaranty Association, which steps in to pay claims if the carrier becomes insolvent.

Non-admitted carriers (also called Excess and Surplus or E&S) are not licensed in Texas and not backed by the state guaranty fund. If your E&S carrier becomes insolvent, your claim becomes your problem.

When E&S is appropriate E&S has a legitimate place in insurance for hard-to-place risks: homes with multiple prior claims, coastal exposure that admitted carriers refuse, or unusual construction. It is not the right home for an Established Homeowner with a financially significant property unless the risk genuinely cannot be placed in the admitted market.
Red flag Quote is from a non-admitted carrier and your agent did not explain that to you. That is a conversation you should have before you sign.

Source: Texas Property and Casualty Insurance Guaranty Association

Question 08

Is your carrier financially stable enough to be there in 15 years?

You are not buying insurance for next year. You are buying insurance for the year you actually need it. That year may be 2030. It may be 2038.

Carrier financial stability is rated by AM Best, Demotech, and S&P. A-rated and above is the standard for Established Homeowners. Anything below A- requires a serious conversation about why.

The HNW carrier exits The high-net-worth insurance market specifically has seen consolidation. Nationwide Private Client began winding down in 2024 as Nationwide refocused on core lines. AIG's Private Client Group spun off into Private Client Select in partnership with Stone Point Capital. Established Homeowners with thinner brokers were forced to re-place coverage from scratch with the wrong carrier. McDade clients in that situation got continuity through PGI's network.

McDade only writes carriers we trust to be there in 15 years. When one retreats, we have somewhere to go.

Source: Top 7 High Net Worth Insurance Companies (2024)

The Question Nobody Warns You About

What happens after you pay off your home?

"You hit the milestone. The mortgage is gone. The lender is gone. Now nobody is forcing you to carry replacement cost coverage. The temptation is real. The consequences are worse."

The Freedom Illusion

"I paid it off. Can I lower my dwelling coverage now?"

Technically yes. You are now the owner of record with no lender requirement. You can call your carrier and request lower limits, switch to Actual Cash Value, or drop coverages entirely.

This is the moment many newly mortgage-free homeowners make the most expensive decision of their financial lives. What feels like freedom is the start of underinsurance.

The Federal Reserve Bank of Dallas confirmed in 2026 research that "some mortgage contracts require replacement coverage for the building structure (except the roof), leaving the actual cash-value option unavailable to certain homeowners." Once the mortgage is gone, that protection is gone with it. Source: Federal Reserve Bank of Dallas (2026)

Trap One

The Coinsurance Penalty.

Most home insurance contracts include a coinsurance clause requiring you to carry dwelling coverage equal to at least 80 percent of replacement cost. If your home would cost $600,000 to rebuild and you carry only $400,000 in dwelling coverage, you are at 67 percent of replacement cost. Below the threshold.

The penalty does not just reduce a total loss claim. It reduces every partial loss. A $50,000 covered kitchen fire becomes a partial payout because your coverage ratio falls short of the coinsurance requirement.

The math

You saved $300 a year by lowering dwelling coverage. The kitchen fire happens in year four. Total premium savings: $1,200. Coinsurance penalty on the partial-loss claim: $14,000. Net cost of the "savings": $12,800.

Trap Two

The Rebuild Gap.

The Federal Reserve Bank of Dallas published research in 2026 confirming what we see every quote review: homeowners limiting coverage to save money are becoming underinsured. The most common saving strategies are reduced coverage limits and increased deductibles. Both lead to the same place.

Industry data confirms construction costs in Texas have risen 25 to 40 percent higher than 2019. A home that cost $400,000 to build in 2019 costs $500,000 to $560,000 to rebuild today. If you lowered your coverage when you paid off your mortgage in 2022 thinking you had "more than enough," your "more than enough" may now be 70 percent of what you actually need.

The Hurricane Harvey case

The Martinez family in Corpus Christi held a $180,000 dwelling limit they thought was adequate. After Harvey, the actual rebuild cost was $240,000. They were personally responsible for $60,000. They had no mortgage. Paying off the home did not protect them. Their coverage limit did not protect them. The carrier paid the policy maximum and the family covered the rest from savings.

Source: Merlin Law Group, Texas Hurricane Underinsurance Cases

Trap Three

The ACV Switch.

While the mortgage was active, your lender likely required Replacement Cost Value (RCV) on the dwelling. Many contracts specifically required it. With the mortgage gone, the carrier may now offer Actual Cash Value (ACV) as a "savings option" on dwelling coverage, not just on the roof.

ACV on the entire dwelling means depreciation is subtracted from every claim. That 15-year-old water heater that ruined your hardwood floors? Depreciated. That 12-year-old roof that took a hailstorm? Depreciated. The 20-year-old HVAC system that failed and flooded a room? Depreciated.

The compounding effect

Every system in your home ages every year. ACV ages every claim alongside it. By year 20 of homeownership, an ACV policy is paying you a fraction of what an RCV policy would pay for the exact same loss. The premium savings vanish in the first claim. The coverage gap compounds for the rest of your time in the home.

"Paying off your home is a milestone. It is not a reason to lower your protection."

McDade often recommends increasing scrutiny on coverage after a payoff, not decreasing it. The home you have earned deserves more attention to the contract, not less.

What McDade Recommends Instead

Reinvest the freedom into the right protection.

The right move after a mortgage payoff is not to lower coverage. It is to reinvest the conversation. Now that you are not balancing premium against principal and interest, you can build a coverage structure designed around your home, not around your mortgage payment.

That conversation usually adds at least three things: increased dwelling coverage aligned with current rebuild costs, extended replacement cost endorsements (often called Guaranteed Replacement Cost or 125% Replacement Cost), and a personal umbrella policy that protects what your home now represents in your net worth.

You did not pay off your home to leave it less protected. You paid it off to protect what it became.

The McDade Standard

40% of the time we tell clients to keep what they have.

"The other 60% is where we find a gap that would have cost them thousands. That is the difference between an advisor and a salesman. Send me your declarations page. I will tell you the truth, even if it costs me the policy."

Charles McDade, LUTCF Founder & CEO, McDade Insurance Brokerage Group

Why McDade Is Built For This Conversation

The structural reasons we can tell you the truth.

"A broker can only be honest with you if their structure lets them be honest. Here is ours."

Reason One

Zero production minimums.

Through our PGI partnership, McDade has no minimum monthly production requirements with any individual carrier. We recommend the carrier that fits your home, not the one paying us the most that month. Why this matters →

Reason Two

220+ carrier relationships.

Premier Group Insurance is an Insurance Journal Top 100 network ranked #38 nationally with $1B in written premium. When one carrier retreats from Texas, we have somewhere to go. The PGI partnership →

Reason Three

Three generations of protection discipline.

Charles's grandfather Douglas Finley supported NASA Apollo-Soyuz 1975 and DHS Cybersecurity 2011. Protection is not a marketing word at McDade. It is the family name. The McDade story →

Have us pressure test your quote

Send us your declarations page. We will tell you the truth.

Connect your current policy in two minutes. A licensed McDade broker reviews it line by line using our four-part framework. Clarity. Probability. Severity. Value. You get two real options inside one business day. About 40% of the time, we tell you to keep what you have.

Compare My Coverage → Why McDade →
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Frequently Asked Questions

The questions worth asking.

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

Replacement Cost pays to replace your damaged roof with a new roof of like kind and quality. Actual Cash Value (ACV) pays the depreciated value at the time of loss. According to the Texas Department of Insurance, on a 10-year-old roof costing $10,000 to replace, RCV with a $2,000 deductible pays $8,000. ACV pays only $5,000 after the same deductible. That is $3,000 out of pocket on a $10,000 roof. Bankrate documented a $60,000 roof example where ACV paid $33,500 vs $58,500 under RCV after a $1,500 deductible — a $25,000 difference. If your quote shows ACV roof and you have a 10+ year-old roof, you are signing up for a five-figure surprise after the next hailstorm.

What is the difference between Named Perils and Open Perils coverage?

Named Perils only covers losses specifically listed. Open Perils covers all losses except those specifically excluded. On the Gulf Coast, the practical difference is wind-driven rain. After Hurricane Ike, Houston-area homeowners with named-perils policies were denied coverage when wind-driven rain entered the home without a clearly visible opening. The same storm. The same damage. Different policy form. Different outcome. Open Perils typically covers wind-driven rain when wind first creates an opening. Named Perils typically does not. Established Homeowners on the Gulf Coast typically need HO-3 minimum, with HO-5 often better for high-value contents.

I just paid off my mortgage. Can I lower my dwelling coverage to save money?

You can. You should not. Once your mortgage is paid, the lender no longer requires dwelling coverage to match replacement cost. The Federal Reserve Bank of Dallas confirmed in 2026 research that some mortgage contracts had required Replacement Cost coverage for the building structure, leaving Actual Cash Value coverage unavailable until the mortgage was satisfied. Many newly mortgage-free homeowners assume they can drop coverage to save premium. The Dallas Fed reports this leads directly to underinsurance: homeowners limiting coverage become underinsured at the worst possible moment. Three traps compound: the coinsurance penalty, the rebuild gap (a Corpus Christi family discovered after Hurricane Harvey their $180,000 dwelling limit fell $60,000 short of the $240,000 needed to rebuild), and the ACV switch on full dwelling coverage. Paying off your home is a milestone. It is not a reason to lower your protection.

What is limited water damage coverage and why does it matter so much in 2026?

Limited water damage is the number one coverage Texas carriers are quietly cutting in 2026. Water damage means burst pipes, slab leaks, sewer backup, hot water heater failures, roof leaks during storms. Industry data shows about 1 in 60 insured homes files a water claim each year. The average insurance payout runs $13,954 nationally. In Houston specifically, slab leak repair plus restoration on a high-end home routinely runs $40,000 to $80,000 or more. Many policies cap water damage at $5,000 or $10,000. If your quote has a water damage sublimit and your home is over 15 years old, you are one slab leak from a six-figure out-of-pocket loss.

Are higher deductibles always a good way to save on premium?

No. The Texas Department of Insurance notes a $500-to-$1,000 deductible swap can save up to 20 percent on premium, but cautions that the right deductible matches what your family can actually absorb. In Texas, hurricane and wind/hail deductibles are typically percentage-based (1 to 2 percent of dwelling value), meaning a 2 percent hurricane deductible on a $300,000 home is $6,000 out of pocket before any coverage applies, and a 2 percent deductible on a $1.2 million dwelling is $24,000. Just because you have $30,000 in savings does not mean you value spending it on a deductible. If your agent never asked the question, your deductible is set for the carrier's benefit.

What is the difference between an admitted carrier and a non-admitted Excess and Surplus carrier?

Admitted carriers are licensed by Texas and backed by the Texas Property and Casualty Insurance Guaranty Association. Non-admitted (Excess & Surplus) carriers are not licensed in Texas and not backed by the state guaranty fund. If your E&S carrier becomes insolvent, your claim becomes your problem. E&S has a place for hard-to-place risks, but it is not the right home for an Established Homeowner unless the risk genuinely cannot be placed in the admitted market.

How do insurance carriers actually make money?

Two ways. Write better clients aligned with the company and service them well over time. Or cut coverages and race to the bottom on price. McDade only works with carriers running the first playbook. If a carrier is winning new business by gutting water damage limits, defaulting to ACV roof, and quoting non-admitted paper, they are not building a relationship with you. They are buying market share at your future expense. Anything can be made cheaper by making it worse. Every cheaper quote is a quieter promise.

Why should I have McDade pressure test my home insurance quote?

McDade pressure tests quotes line by line using our four-part framework: Clarity, Probability, Severity, Value. We compare contracts to contracts. Through our partnership with Premier Group Insurance, an Insurance Journal Top 100 network ranked #38 nationally with $1 billion in written premium, we have access to 220+ carrier relationships. We have zero minimum production requirements, so we recommend the carrier that fits your home — not the one paying us the most that month. About 40 percent of the time we tell clients to keep what they have. The other 60 percent is where we find a gap that would have cost them thousands.