Gap Insurance Texas
The Lone Star State is as big as it is dangerous given the many potential natural disasters regularly occurring that can wipe out entire communities and destroy homes, cars and other properties. From hurricanes along the Gulf Coast to tornadoes in the heartland to flooding along the many rivers and canals to drought and even severe winter storms in some higher elevations in Texas Hill Country, although on rare occasions there.
But with such a wide variety of potential natural disasters piled on top of the ever-present dangers of daily life in one of the largest states in the Union, there is a great need for gap insurance Texas home and cars need to protect their owners against potential financial devastation. When a vehicle or home is worth less than what the owner owes on the loan to buy it, he or she runs a high risk of owing thousands of dollars or more if it is destroyed or damaged by a covered peril. When an insurance company pays out based on actual cash value, that means factors such as depreciation are taken into account as well as market value, which means the owner could wind up in deep debt if the car or home is worth much less than it was when bought new.
But it is easy to find gap insurance Texas home and cars need to stay safe and keep their owners protected against financial harm. Gap insurance also is known as general auto protection when applying to cars, trucks, vans and other vehicles, and general asset protection when referring to coverage for homes and other properties. No matter the reason for gap insurance. Texas families need it to ensure their cars, homes and other properties do not leave them vulnerable to steep financial harm if they are damaged or destroyed and the insurance policy does not pay the amount owed on it. When buying a new or used vehicle and making little to no down payment on it or even a somewhat low down payment of less than $2,000, the interest rate charged coupled with vehicle depreciation means the owner could owe a great deal of cash for the difference between the vehicle’s actual value and the amount an insurance policy will pay.
When left with a deficit between the amount owed on a vehicle, home or other property and what the insurer pays out based on the actual cash value, the lender can demand an immediate payment of any remaining sum for any property that has been declared a total loss. That means a homeowner could wind up owing tens of thousands of dollars or more that could be covered with gap insurance Texas homes and cars need to keep their owners out of financial harm. And gap coverage is relatively inexpensive, costing about $100 per year for a plan protecting a new vehicle. That means there really is no good reason not to buy general auto protection and general asset protection plans to ensure family homes and cars are secure along with the family finances backing them.