Homeowners insurance protects you from financial property losses
caused by storms, fire, theft, and many other kinds of events.
Just what will be covered depends on your particular policy. Be
sure that you read through yours and understand what coverages
and events apply to you. In Texas, there is a Consumer Bill of
Rights to protect buyers of homeowners and renters insurance. Your
company must send it to you when you buy your policy. You should
read through it carefully before you have to report an incident,
to know what your rights and responsibilities are under Texas law.
There are several different types
of home insurance in Texas. You can buy only a dwelling policy
if you want. This covers on the structure of your house and any
outbuildings. It doesn't cover anything in the house. To get
that coverage, you'll have to buy a homeowners policy, which
combines dwelling coverage with personal property coverage, liability,
medical payments for people hurt on your property, and loss of
use, which pays for accommodations if your house becomes too
damaged to live in. There are three standardized types of policy
available in Texas – HO-A, HO-B, and HO-C.
These are different than the standardized types available elsewhere
in the country. In general, HO-B is considered the greatest coverage
for your money, but your needs will vary. Study the types to find
out what will work best for your situation. You can also get alternative,
non-standardized policies, but these will vary by company. The
others will not. A policy offered by one company will have the
same coverage as one written by another, but their rates may vary
drastically.
Most home owners insurance policies cover losses from fire, lightning,
vehicles, vandalism and theft, explosion, smoke, storms, and sudden
water damage. They often don't cover damage by flood, earthquake,
vermin, wear and tear, or slow water damage. Depending on where
you live in Texas, homeowners insurance companies may exclude damage
from some kinds of sources. Residents of the Gulf Coast may find
that their policies don't cover wind, storm, and hail damage, for
instance. Most companies also don't cover mold damage beyond the
amount needed to repair property damaged by otherwise covered water
damage.
Other policies that are available to Texas residents include renters
insurance and insurance for condo and townhouse owners, as well
as ranch and farm policies. You can pay extra to get coverage for
farm equipment and outbuildings. Be sure to maintain adequate coverage
for your house. This means making sure that you're covered for
the cost to rebuild your home, rather than its market price. You
can consult with your agent to find out what this value is. If
you have expensive personal property, consider avoiding actual
cash value policies. These will pay only the value of your belongings,
not the cost to replace them. If your electronics or other valuables
are stolen, this could lead to problems getting new ones. If you
own a lot of very nice electronics or jewelry, you might be required
to pay additional premiums to cover them.
