InsuranceLecturer — Although homeowners insurance is not required by the state of Texas, for those who are living in a mortgaged home, it is best to protect yourself from financial loss by purchasing a homeowners insurance policy.
There are three basic types of standard insurance policies approved by the Texas Commissioner of Insurance to be sold in the state of Texas. These standardized plans include the HO-A, the HO-B, and the HO-C.
The HO-A offers very limited insurance coverage for the dwelling and the contents inside. This type of policy will more than likely not cover any extra damages, like a hurricane, tornado or even wildfires.
The HO-B will cover more extensive damage from a significant list of causes. Anything excluded from the HO-B plan will be those that are independently listed in a clause of the coverage plan.
Finally, the HO-C is the most extensive plan offered in Texas and will cover nearly every type of damage that could occur to a property and the homeowner’s possessions. Of course this is the most expensive insurance plan offered in the state, but will protect homeowners from a wide range of damages that could occur to a home.
There are other varying levels of coverage that can be offered by independent insurance companies, but these policies need to be approved by the Commissioner of Insurance for the state of Texas before offered to customers.
Keep in mind that if one company has received approval by the Commissioner and another has not, each company may offer a completely different set of insurance policies, making it difficult to comparison shop.
It is extremely important to ask a Texas homeowner’s insurance agent if a basic policy covers wildfire damage, hurricane damage, wind and hail damage and flooding damage.
Although hurricane damage may be added into coverage if the homeowner lives in a location near the ocean, many insurance policies will not automatically include this since it is a specialty type of damage.
As well, Texans may see all different types of weather depending on the region they live in. If you feel like you will be moving to a region that has potentially hazardous winds, a potential for flooding, or wildfires, then it is best to ask your insurance agent how to obtain these extra types of insurance.
Most are not included in basic homeowner’s insurance policies and will need to be added on to the yearly homeowners insurance to protect the home and the possessions.
New legislation requires that the policy coverage be spelled out in layman’s terms to the homeowner, but it is still in your best interest to ask before you receive the policy.
Keep in mind that many insurance companies will put a hold on certain types of insurance, like hurricane insurance, if it is the time of year for that type of damage. This protects the insurance company but could leave you without the insurance coverage you need.
An important and helpful resource that the Texas Department of Insurance and Governor Rick Perry have put together is the website helpinsure.com. The website offers a question and answer section regarding specific Texas homeowner’s insurance questions and also offers a place where consumers can sign up to find homeowners insurance company that will insure them.
For those who don’t want to sign up for a specific analysis, the website just offers a list of insurance companies in different parts of the state of Texas. This can help Texas homeowners find the insurance company that best fits their needs.