Types of Homeowners Insurance

Types of Homeowners Insurance

There’s more than one type of home insurance policy. Things in Texas can be different than others states too. Check with us to make sure your property is covered correctly.

Here’s a little bit of info about homeowners insurance:

Types of homeowners coverages

Homeowners policies combine several types of coverage into one policy. Most homeowners policies in Texas include these six coverages:

1.    Dwelling coverage pays if your house is damaged or destroyed by something your policy covers.

2.    Personal property coverage pays if your furniture, clothing, and other things you own are stolen, damaged, or destroyed.

3.    Other structures coverage pays to repair structures on your property that aren’t attached to your house. This includes detached garages, storage sheds, and fences.

4.    Loss of use coverage pays your additional living expenses if you have to move while your house is being repaired. Additional living expenses include rent, food, and other costs you wouldn’t have if you were still in your home.

5.    Personal liability coverage pays medical bills, lost wages, and other costs for people that you’re legally responsible for injuring. It also pays if you’re responsible for damaging someone else’s property. It also pays your court costs if you’re sued because of an accident.

6.    Medical payments coverage pays the medical bills of people hurt on your property. It also pays for some injuries that happen away from your home – if your dog bites someone at the park, for instance.

Other coverages you might need

Your homeowners policy might not protect you against some risks. You can buy a separate policy or add on to your policy if you need more protection.  

Flood insurance

Homeowners policies don’t cover damage caused by floods. To protect yourself from losses caused by flooding, buy a flood insurance policy from the National Flood Insurance Program (NFIP). If your property is in a flood hazard area, your lender will require you to have flood insurance. For more information and to learn whether you’re in a flood hazard area, visit FloodSmart.gov or call 800-427-4661.

Windstorm and hail insurance on the Gulf Coast

If you live on the Texas coast or in Harris County on Galveston Bay, your homeowners policy doesn’t cover wind and hail damage. The Texas Windstorm Insurance Association (TWIA) sells wind and hail coverage for coastal residents. You buy TWIA coverage from local insurance agents. Depending on where you live, you might need flood insurance before TWIA will sell you a policy. You also might need a home inspection by an engineer or a windstorm inspector. For more information, visit twia.org or call 800-788-8247.

Don’t wait until the last minute to buy wind and hail insurance. TWIA won’t sell you a policy if there’s a hurricane in the Gulf of Mexico.

Learn more about the differences between homeowners, wind, and flood insurance.

Extra liability coverage

Homeowners policies provide liability protection, but the amount of coverage is limited. If you want more coverage than your policy provides, you can buy a separate umbrella liability policy.

Extra coverage (endorsements)

Most companies offer endorsements, or policy add-ons, that let you increase or add coverage. Common endorsements include coverage for:

·         jewelry, fine arts, or electronics (your policy provides some coverage, but it might not be enough to cover expensive items);

·         backup of sewers or drains;

·         damage to foundations or slabs;

·         extra construction or repair costs to meet local building codes;

·         extra construction costs if your policy doesn’t pay enough to rebuild your home;

·         mold removal; and

·         damage from earthquakes.

Other types of property insurance

·         Renters insurance covers your clothes, furniture, and other personal property if they’re stolen or damaged while you’re living in a rented house or apartment. Renters insurance won’t pay to fix the house or apartment building. The building owner’s policy does that. You might not need renters insurance if you’re still a dependent. Your parents’ homeowners policy might cover your property, even if you’re not living at home.

·         Condominium insurance covers your property and the interior of your unit. It also provides liability protection and pays additional living expenses.

·         Townhouse insurance can either cover the interior and exterior of your townhouse, or just the interior. The difference depends on whether the homeowners association has a master policy that covers the exterior. If it does, you can buy a policy that covers only the interior. If the association’s master policy doesn’t cover the exterior, you can buy a policy that covers both the interior and exterior. Townhouse insurance also covers your personal property and provides liability and additional living expenses coverage.

·         Mobile home insurance covers the mobile home, your personal property, and additional living expenses. It also provides liability coverage.

·         Farm and ranch insurance is for homes outside city limits on land used for farming and raising livestock.

 

For additional information visit: https://www.tdi.texas.gov/pubs/consumer/cb025.html

And remember: We’re here to help you with ANY insurance questions or concerns.

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