Homeowners insurance pays to repair or replace your house and personal property if they’re damaged or destroyed by an event or occurrence covered by your policy. These events or occurrences are called “covered losses.”
Texas Homeowners Policies
- Personal property
- Other structures
- Loss of use
- Personal liability
- Medical payments
Types of Policies
- 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.
- 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 doesn’t include the value of your land. Ask your company if you aren’t sure how much it would cost to rebuild your house.
Other Types of Residential Property Policies
- Renters insurance.
- Condominium insurance.
- Townhouse insurance.
- Mobilowners insurance.
- Farm and ranch insurance.
- Actual cash value
Other Types of Insurance You Might Need
Extra Coverage (Endorsements)
Some of the most common endorsements expand or increase coverage for jewelry, fine arts, or camera equipment. Other common endorsements provide coverage for damage originally excluded by the policy.
- Backup of sewers or drains.
- Damage to foundation or slabs.
- Extended or additional dwelling replacement coverage.
- Law or ordinance coverage.
- Mold remediation.
- Replacement cost-dwelling.
- Replacement cost-personal property.
- Water damage from a plumbing, heating, or air conditioning system.
Personal Umbrella Liability Insurance
Review your Policy
After you buy a policy, review it to ensure that everything is correct. Review the following items listed on the declarations page:
- Your name and the property location.
- Policy period.
- Other coverages or endorsements.
- Policy premium.
- Rating information.
Understanding Rates and Premiums
Texas law requires insurance companies to offer rates that are reasonable, adequate, not excessive to the risks for which they apply, and not unfairly discriminatory.
Factors that Affect Your Premium
- Your home’s age and condition.
- Construction materials used in your home.
- Where you live.
- Availability of local fire protection.
- Your claims history.
- Your credit score.
Discounts can help you save money on your insurance. You might be able to get a discount for having
- an impact-resistant or noncombustible roof
- burglar, fire, and smoke alarms
- an automatic sprinkler system
- fire extinguishers
- other policies with same company or group
- no claims for three years in a row.
You also might be able to get a discount if you have a newer home, if you’re over 65, if you keep your home and property in good condition, if you insure your home to full replacement cost, and if you mark your personal items with an identifying number.
If you live in a rented house or apartment, you’ll need renters insurance to protect your personal property. Renters insurance pays to repair or replace personal property – things like your clothes, furniture, and electronics – if they are stolen or damaged. Renters insurance won’t pay to fix the house or apartment building if it’s damaged. The building owner’s insurance policy covers that.
All renters policies have a total dollar limit. The dollar limit is the most the insurance company will pay you for a claim, even if the cost to repair or replace your property is higher. Make sure you buy a policy with a high enough dollar limit to replace your property if it’s stolen or destroyed.
Renters Insurance Coverages
Renters insurance policies typically include three types of coverages: personal property coverage, loss of use, and personal liability.
- Personal property coverage
- Loss of use
- Personal liability