Because every state is different, you will want to consider each specific requirement in your state before purchasing insurance. A Texas homeowner is expected to choose from the two types of policies available in the state, which include all-risk policies (comprehensive coverage) and named perils policies (specified perils coverage). All-risk policies offer a broad amount of protection that covers all different types of loss, except causes that are specifically excluded from the plan. Named peril policies offer much less protection in comparison and only cover losses specifically mentioned in the policy. Named peril policies cover every minimum requirement for a Texas homeowner.
Most Texas homeowners insurance policies require coverage for the following five categories:
- Dwelling- This type of coverage will account for costs due to damaged or destroyed property on your home or surrounding structures, including fences, storage sheds, detached garages and so forth.
- Personal Property- Coverage will account for the cost of stolen, damaged or destroyed property within your home. Types of property would include furniture, clothing, appliances, etc.
- Liability- A minimum of $25,000 worth of coverage is required for lawsuits, resulting in your responsibility to compensate for property damages or injuries to another person.
- Medical Payments- To cover the medical bills of someone who was injured on your property or possibly something that happened away from your property, such as your dog biting someone else while on a walk, the minimum requirement is approximately $500 for various medical expenses though up to $5,000 is available.
- Loss of Use- This category covers you living expenses (housing, food, etc.) if you are forced to move due to the damage to your home. Insurance policies usually cover either a percentage or a time period of expenses.
If you are a Texas homeowner who is looking to purchase home insurance for the first time, be sure to discuss each state requirement with your insurance agent as well as your unique needs and preferences to find a plan that fits all of your needs.