You want to understand just exactly what your Texas home and auto insurance covers, but you also know that the policies will be written in fairly technical and legal language. What you can do is take the brief description page you were given for each policy and use it as a guide to find the most important parts of the policy.
Which parts are most important will depend on which insurance policy you are examining. If it’s your home insurance, you want to look for the following:
- Exactly what is covered. Does your homeowners policy include unattached buildings or structures such as garages, barns, tool sheds, or similar structures? Some do; some don’t, and knowing this will help you determine if you need to consider getting a “rider” (additional coverage) for those things.
- The coverage amounts. Again, this varies from policy to policy, but generally you are covered for the replacement value of your home should it be completely destroyed, as well as certain amounts for damage repairs or replacements.
- If medical coverage is included, and the amounts of that. For some Texas residents, choosing medical coverage on home insurance policies is an option.
- The amount of your deductible.
If you are examining your auto insurance policy, you want to examine these parts:
- Liability: the amounts that will be paid for repairs to other vehicles involved, and the deductible amount.
- Comprehensive and Collision: the amounts that will be paid for repairs on your vehicle. Comprehensive can also cover damage to your car that occurred for reasons other than an accident.