Online Insurance Quote > Home Insurance
Homeowners Insurance Quote Center
Texas Homeowners insurance pays to repair or replace your home or personal property if it is damaged or destroyed because of something -- such as a fire, storm, or theft – that’s covered by your policy. Your policy states the types of losses it will cover and the maximum amount it will pay. A policy is a contract between you and your insurance company. Read it carefully to understand exactly what it covers and the dollar limit of the coverage. You should also understand your rights. Texas has a Consumer Bill of Rights for homeowners and renters insurance. Your company must send you the Bill of Rights when you get or renew a policy. Buying a home is one of the single largest investments that most people ever make. If you need to protect that investment, your main line of defence is homeowners insurance.
Most standard Texas homeowners insurance policies will provide coverage for damage to your home (and many of the items in your home) caused by: Theft, Fire and lightning, Smoke, Frozen pipes, Ice and snow. Texas Homeowners insurance also provides coverage for liability claims, medical payments to third parties, and legal costs if a lawsuit is brought against you. The most common amount of liability coverage included in a homeowners policy is $100,000, but you may need much more, depending on your circumstances. Read your Texas homeowners insurance policy to find out exactly what is and is not covered. Do this before you suffer a loss, so you won't be surprised. We have assembled some of the finest and cheapest sources for Texas Homeowners Insurance. The process is simple - answer just a few questions and get cheap Texas Home Insurance Quotes, Homeowners Insurance Quotes from several leading and reputed insurance companies for enture Texas state.
Cheap Texas Home Insurance Quotes
Texas Home Insurance Update
Texas Homeowners Policies
Most Texas Homeowners policies combine the following five coverages:
Dwelling pays if your house is damaged or destroyed by a covered loss. It also pays for unattached structures and buildings, such as fences, detached garages, and storage sheds.
Personal property pays if the items in your house (such as furniture, clothing, and appliances) are stolen or damaged or destroyed by a covered loss.
Liability provides $25,000 in coverage if you are sued and found legally responsible for someone else’s injury or property damage. You may be able to purchase up to $1 million in additional coverage.
Medical payments pays the medical bills of people hurt on your property. It might also pay for some injuries that happen away from your home -- if your dog bites someone at the park, for instance. A basic homeowners policy pays $500 in medical bills, but you may buy up to $5,000 in medical payments coverage.
Loss of use pays your additional living expenses (housing, food, and other essential expenses) if you must temporarily move because of damage to your house from a covered loss. Your policy will pay either a percentage of the amount of your dwelling coverage (typically 10 to 20 percent) or for a specific period after the loss (such as 24 months).
Types of Policies
Insurance companies in Texas may sell several types of policies with different levels of coverage.
If a company offers you a policy with less coverage than you’d like, ask if other policies are available. You may also be able to buy additional coverage by adding endorsements to your policy.
The two types of policies sold in Texas are:
All-risk policies (also known as a comprehensive coverage or open perils coverage). These policies offer you broad protection and cover all causes of loss unless the policy specifically excludes them.
Named perils policies (also known as specified perils coverage). These policies offer narrower protection than an all-risk policy and cover only the causes of loss specifically named in the policy.
Note about replacement cost and actual cash value:
Replacement cost is what you would pay to rebuild or repair your home, based on current construction costs. Replacement cost is different from market value and does not include the value of your land. Ask your company if you are not sure how much it would cost to rebuild your house.
Actual cash value is the replacement cost of your property minus depreciation. If your home is destroyed and you only have actual cash value coverage, you may not be able to completely rebuild.
To compare policies approved for sale in Texas, visit the Office of Public Insurance Counsel (OPIC) website: www.opic.state.tx.us
Policy Dollar Limits
A policy’s dollar limits are the maximum amounts your insurance company is required to pay if your house is destroyed. The Declarations Page at the front of your policy shows your policy’s dollar limits. Review your limits to ensure you have enough coverage to avoid a major financial loss if your home is severely damaged or destroyed. Talk with your agent or a company representative if you have any questions about your insurance limits.
To receive full payment (minus your deductible) for a partial loss, such as a hail-damaged roof, most companies require you to insure your house for at least 80 percent of its replacement cost. If you insure your house for less than 80 percent of the full replacement cost, the insurance company will pay only a portion of the loss. Some companies might require you to insure your house for 100 percent of its replacement cost.
Coverage for Your Personal Property
Texas Homeowners insurance policies provide coverage for your personal property (such as furniture, clothing, and household electronics) as a percentage of the amount of your dwelling coverage limits. For example, if your company insures your personal property at 40 percent of your dwelling coverage, and your house is insured for $100,000, your items are insured for up to $40,000. You might be able to buy more coverage by paying a higher premium.
Texas Homeowners insurance policies usually cap the coverage provided for certain types of personal property, such as jewelry and furs. Tell your agent or company about any special items you have that you’d like to insure. You may be able to buy additional coverage for these items for an extra premium.
Typically a homeowners policy will pay only the actual cash value of damaged, stolen, or destroyed personal property. Actual cash value is an item’s replacement cost, minus depreciation.
You may be able to buy replacement cost coverage for your personal property. Replacement cost coverage offers you more protection than actual cash value coverage. For example, if you have actual cash value coverage and a burglar steals your six-year-old television set, the insurance company will only pay you the cost of a six-year-old television set. With replacement cost coverage, the company would pay to replace your TV with a new set similar to the one that was stolen.
Most companies won’t pay the full cost to replace or repair an item until after you have replaced or repaired it.
Shopping for Cheap Texas Homeowners Insurance
Rates and coverage vary from company to company, so it’s a good idea to shop around. The following useful tips can help you find the best deal for your money:
Understanding Rates and Premiums
Insurance companies file their rates with TDI but don’t need approval before using them. This system is called file and use. Texas law requires homeowners insurance companies to offer rates that are reasonable, adequate, not excessive to the risks for which they apply, and not unfairly discriminatory. If TDI determines that a company’s rates don’t meet these requirements, we may require the company to pay refunds to the policyholders it overcharged. Companies may appeal TDI’s decisions.
Factors that Affect Your Premium
Companies use a process called underwriting to decide whether to sell you a policy and what rate to charge you. Each company must file its underwriting guidelines with TDI and send us updates if the guidelines change. Companies use various factors to determine premiums. These include:
Your home’s age and condition. Companies may refuse to insure homes in poor condition, but they may not deny coverage solely because of a home’s age or value. However, most companies will charge you more if you are insuring an older house.
Your home’s replacement cost. If you have a replacement cost policy, your policy will pay to rebuild your home if it is destroyed. Your premiums will increase in relation to the amount of your replacement cost.
Construction materials used in your home. Homes built primarily of brick are less expensive to insure than frame homes.
Where you live. Premiums will likely be higher in areas with a higher crime or high storm activity.
Availability of local fire protection. Premiums are usually lower for homes in areas with access to good fire protection.
Your claims history. Companies use your claims history to determine what to charge you for your coverage. Your claims history includes both the type and the number of claims filed.
Your credit score. Companies may consider your credit score when deciding whether to sell you a policy and what to charge you. However, a company cannot refuse to sell you a policy or cancel or nonrenew your policy solely on the basis of your credit score. Companies that use credit scoring must file their credit scoring models with TDI. Learn more about how companies use credit scoring on HelpInsure.com.
Discounts can help you save money on your insurance. Companies may offer premium discounts if you take steps to reduce the chances of a loss. Each company sets the amount of the discounts it offers to its policyholders. Some of the more common discounts are listed below:
Source: Texas Department of Insurance