Homeowners Insurance in Texas

There is no way around it: insuring your home is a must. Of course, there is no one-size-fits-all policy, and with a state with such varying landscapes as Texas, you need a policy that suits the needs of your home. Whether you dwell among the Dallas city lights, along the Gulf Coast, or in a remote desert outpost, as a Texas homeowner you are statistically more likely to see damage to your property than homeowners in other states. Fortunately, there is a Texas homeowners insurance policy that is right for you. Insurance law in the state of Texas has a standard set of policy brackets, though rates differ by company. Here are some coverage options for Texas homeowners.

Types of policies

There are three standardized policies in Texas. Each policy type, excluding HO-A Amended, has set language and extent of coverage, though insurers may charge different rates for each. Insurance companies can also write alternative policies with the approval of the state Commissioner of Insurance.

• HO-A. This is the most basic, least expensive standardized policy. With this type of policy, cash value coverage for your home and property is very limited. This policy only covers what it specifically lists.
• HO-A  Amended. Not a standardized policy, this kind of policy provides additional, personalized coverage in addition to that provided in the HO-A policy, yet less coverage than the HO-B option.
• HO-B. More extensive than the HO-A and HOA-Amended policies, this type of policy covers most replacement costs on a claim, except on items that the policy specifically includes.
• HO-C. Another standardized Texas policy, this is both the costliest and the most extensive type homeowners insurance policy you can purchase in Texas.

Types of coverage available

Texas homeowners insurance policies are a combination of different coverage types. These extend well beyond basic property damage coverage. Your Texas homeowners insurance policy can have you covered for a variety of incidents, from replacement costs in the case of theft to medical bills if your dog bites someone.

• Dwelling. This covers damage to your property, including your house, garage, fence, or any other structure on your property.
• Medical. If someone suffers an injury on your property, this type of coverage will help you pay his or her medical bills. Medical coverage also helps cover costs for some incidents that happen off your property. A basic policy covers up to $500 in medical costs, though paying slightly more on your premium can get you up to $5,000 in medical coverage.
• Liability. You can purchase anywhere from $25,000 to $1,000,000 in this type of coverage, which helps cover costs if someone sues you over injury or property damage that took place on your property.
• Personal property. This covers the contents of your house, including furniture and clothing, in the case of theft or an event that results in damage or destruction of personal property.
• Loss of use. If an event damages your home to the extent that you cannot live there, this coverage will pay the expenses of alternative accommodations.

What coverage includes

Whether an insurance company will offer you specific coverage (and to what degree) depends on the company issuing the policy, where you live, and the vulnerability of your home to various risks. Yet in Texas, there are a some types of coverage you can expect from your policy -- and others you cannot. Most policies cover you for damage that comes from fire, lightning, theft, vandalism, smoke, hurricanes and windstorms, vehicles and aircraft, explosion, and riot or civil commotion.

What coverage excludes

There are certain things that your Texas homeowners insurance policy is not likely to cover. These include normal wear and tear, rat or insect damage, damage from a flood or earthquake, or termites, among others. Whether or not you can collect on claims related to frozen pipes and other losses can depend on whether your house has been vacant for 60 days or more. Read your policy thoroughly and check with the Texas Department of Insurance to determine the extent to which your policy has you covered.

Texas Homeowners' Bill of Rights

Whichever insurer you choose, they must include a copy of the Texas Consumer Bill of Rights for homeowners and renters insurance with your policy. This document outlines what your insurer can and cannot do in the event of certain claims as well as eligibility for safety net policies. This is an important tool to have on hand in case you need to make a claim. It is a good idea to review it online before you purchase a policy so that you have a good idea of your rights and responsibilities before you purchase a homeowners insurance policy.