Before you purchase homeowners insurance for your Texas house, there are a few important things you should know about the coverage you are buying. Following are 3 things you should know prior to buying Texas homeowners insurance.
- Basic Policies – There are 3 basic types of Texas homeowners insurance policies that provide a standard level of coverage. They are HO-A, HO-B and HO-C. An HO-A policy provides the lowest level of coverage. It generally provides a limited cash value for loss and damage to your home and its contents. An HO-B policy is a step up and may provide replacement cost coverage for all forms of damage or loss except those specifically excluded in the policy. The HO-C policy provides even more complete coverage and are also the highest price of the 3 types of policies.
- Basic Coverage – Most Texas homeowners policies provide the following coverage. They cover losses caused by fire and lightning, smoke, explosion, theft, vandalism and malicious mischief, riot and civil commotion, aircraft and vehicles, windstorm, hurricane and hail (you may need a separate hurricane rider) and sudden and accidental water damage. Areas that generally are not covered include loss caused by flooding, earthquake, termites, insects, rats or mice, wind or hail damage to trees and shrubs, losses in a house that has been vacant for 60 days or longer, wear and tear or maintenance and water damage resulting from continuous and repeated seepage.
- Personal Property – When you buy a standard Texas homeowners policy, your personal possessions are generally covered up to 40% of the amount of the dwelling coverage. If you do not feel that is adequate, you can get higher coverage by paying a higher premium.