Home Insurance
Home Insurance
Home insurance protects you financially if your home or property is damaged or destroyed by something your policy covers, like a fire or storm.
The law doesn’t require you to have home insurance. But if you still owe money on your home, your lender will require you to have it. Even though it’s not legally required, home insurance is a good idea because it helps protect your home and other assets.
Types of Home insurance coverages
Home policies combine several types of coverage into one policy. Most home policies in Texas include these six coverages:
Dwelling coverage pays if your house is damaged or destroyed by something your policy covers.
Personal property coverage pays if your furniture, clothing, and other things you own are stolen, damaged, or destroyed.
Other structures coverage pays to repair structures on your property that aren’t attached to your house. This includes detached garages, storage sheds, and fences.
Additional living expenses coverage pays if you have to move while your house is being repaired to fix damages your policy covers. Additional living expenses include rent, food, and other costs you wouldn’t have if you were still in your home.
Personal liability coverage pays medical bills, lost wages, and other costs for people that you’re legally responsible for injuring. It also pays if you’re responsible for damaging someone else’s property. It also pays your court costs if you’re sued because of an accident.
Medical payments coverage pays the medical bills of people hurt on your property. It also pays for some injuries that happen away from your home – if your dog bites someone at the park, for instance.
What risks does a Home Policy cover?
Your home policy protects you against different risks or perils. Risks and perils are things that could damage your house or property. A standard homeowners policy covers damage to your home and its contents.
Most policies cover damages from:
Most policies don’t cover damages from:
Coverages vary by company. Read your policy or talk to your agent to be sure of your exact coverages.
Replacement cost VS Actual cash value coverage
Home policies provide either replacement cost coverage or actual cash value coverage. To be fully protected, make sure your policy has replacement cost coverage.
Deductibles and Dollar limits
Make a list of the items you own.
Policies pay only up to their dollar limits.
Personal Property Coverage
If you have a claim, you must meet a deductible.
Other coverages you might need
Your home policy might not protect you against some risks. You can buy a separate policy or add on to your policy if you need more protection.
Flood insurance
Home policies don’t cover damage caused by floods. If your home is in a designated flood zone, your lender requires you to have flood insurance. But floods can happen anywhere. More than half of homes flooded by Hurricane Harvey were outside of designated flood zones.
Talk to your home insurance agent about getting a flood policy from your insurance company or the National Flood Insurance Program. Most flood policies have a 30-day waiting period before kicking in so don’t wait for an approaching storm before deciding to buy coverage.
Windstorm and hail insurance on the Gulf Coast
If you live on the Texas coast or in Harris County on Galveston Bay, your home policy doesn’t cover wind and hail damage. The Texas Windstorm Insurance Association (TWIA) sells wind and hail coverage for coastal residents. You buy TWIA coverage from local insurance agents. Depending on where you live, you might need flood insurance before TWIA will sell you a policy. You also might need a home inspection by an engineer or a windstorm inspector. Don’t wait until the last minute to buy wind and hail insurance. TWIA won’t sell you a policy if there’s a hurricane in the Gulf of Mexico.
Extra liability coverage
Home policies provide liability protection, but the amount of coverage is limited. If you want more coverage than your policy provides, you can buy a separate umbrella liability policy.
Most companies offer endorsements, or policy add-ons, that let you increase or add coverage. Common endorsements include coverage for:
- Jewelry, fine arts, or electronics (your policy provides some coverage, but it might not be enough to cover expensive items).
- Backup of sewers or drains.
- Damage to foundations or slabs.
- Extra construction or repair costs to meet local building codes.
- Extra construction costs if your policy doesn’t pay enough to rebuild your home.
- Mold removal.
- Damage from earthquakes.
Coverage for Short-term rentals
Most policies won’t pay for damages or injuries that occur during short-term rentals. If you rent out your house for short-term lodging, ask your insurance agent if you’re covered. You might need to buy more coverage.
Renters insurance covers your clothes, furniture, and other personal property if they’re stolen or damaged while you’re living in a rented house or apartment. Renters insurance won’t pay to fix the house or apartment building. The building owner’s policy does that. You might not need renters insurance if you’re still a dependent. Your parents’ home policy might cover your property, even if you’re not living at home.
Condominium insurance covers your personal property and the interior of your unit. It also provides liability protection and pays additional living expenses.
Townhouse insurance can either cover the interior and exterior of your townhouse, or just the interior. The difference depends on whether the homeowners association has a master policy that covers the exterior. If it does, you can buy a policy that covers only the interior. If the association’s master policy doesn’t cover the exterior, you can buy a policy that covers both the interior and exterior. Townhouse insurance also covers your personal property and provides liability and additional living expenses coverage.
Mobile home insurance covers the mobile home, your personal property, and additional living expenses. It also provides liability coverage.
Farm and ranch insurance is for homes outside city limits on land used for farming and raising livestock.
Understanding Rates & Premiums
Insurance companies use a process called underwriting to decide whether to sell you a policy and how much to charge you. The amount you pay for insurance is called a premium. Each company’s underwriting rules are different. This means one company might be willing to sell you a policy, even if another company isn’t. It also means that different companies charge different rates.
Most companies consider these things when deciding on your premium:
Your home’s age and condition. Companies can’t turn you down just because of your home’s age or value, but they can charge you more.
Your home’s replacement cost. Houses with higher replacement costs have higher premiums.
Construction materials. Premiums are higher for houses built completely of wood. They’re lower for houses built of brick or stone.
Where you live. Premiums are higher in areas that have more storms or crime.
Availability of local fire protection. Premiums are lower for houses that are close to fire stations.
Your claims history. Your premiums might be higher if you’ve had claims in the past.
Your credit score. Some companies use your credit score to decide what to charge you. Your premiums will be lower if you have good credit. A company can’t turn you down based only on your credit, score.
Insurance companies may check the claim history of you and your house.
Most companies use the Comprehensive Loss Underwriting Exchange (CLUE) to learn your claims history. CLUE reports show the claims history of people and houses, regardless of who owned them, for the last seven years. A company can charge you more or refuse to sell you a policy based on the information in your CLUE report.
Ask about Our Discounts
Discounts help lower your premium. Each company decides what discounts to offer and the amount of the discount. You might be able to get a discount if you have:
- A monitored burglar or fire alarm system.
- A sprinkler system.
- A new roof.
- An impact-resistant roof.
- A newer home or a home in good condition.
- Other policies with the same insurance company.
- No claims for three years in a row.
Home Insurance
Contact us today for a homeowner’s insurance quote and let us assist you in securing the protection your home deserves. We take pride in offering money-saving discounts, ensuring you get the coverage you need at the savings you deserve. Trust us to provide peace of mind and reliable insurance solutions for your home and your family.