WN Insurance Services
Homeowners Insurance in Texas
What is homeowners insurance?
Homeownership is a big responsibility, and it is important to ensure that a home is protected well. Getting homeowners insurance is a crucial part of taking care of your Texas home.
Homeowners insurance provides custom-tailored coverage for a house. Most policies also cover the residents and their belongings as well.
Who needs home insurance in Texas?
Although home insurance isn’t required by law, most homeowners in Texas should have coverage for their house. Few could afford to replace their house should something happen to it.
For homeowners who have a mortgage on their property, certain coverages may indeed be required. Lenders commonly require dwelling coverage so that their financial interest in a house is protected even if the house becomes a total loss.
Regardless of any lender requirements, it’s generally recommended to purchase robust home insurance that covers your house, your belongings and yourself. An insurance agent who specializes in these policies can help determine just what coverages, deductibles and limits should be chosen.
What are the insurance coverage options available to homeowners?
Homeowners policies typically offer several types of coverage, which may include property and liability protections. Some of the coverages to consider are:
- Dwelling Replacement Cost Coverage: Could protect the primary residence from damage or loss.
- Other Structures Coverage: Could protect additional structures like storage sheds, large outdoor kitchens, detached garages, gazebos and barns.
- Loss of Use Coverage: Could provide financial assistance for temporary accommodations if your home becomes uninhabitable due to a covered occurence.
- Personal Property Coverage: Could protect personal belongings, including furniture, clothes, and dishes from damage or loss.
- Scheduled Personal Property Coverage: Could protect valuable items, including electronics, antiques, collectibles, and firearms.
- Personal Liability Coverage: Could apply to lawsuits arising from common accidents and certain other incidents.
Is actual cash value or and replacement cost personal property coverage better?
Personal property coverage may be underwritten as actual cash value or replacement cost coverage. The difference lies in how much each type of coverage pays for lost or damaged possessions.
Actual cash value normally pays what the lost possessions would currently be worth if they were sold. The fair market value reflects any depreciation that’s occurred, which can result in receiving substantially less than what new items cost.
Replacement cost coverage normally pays what it’d cost to replace the lost possessions with like new ones. This tends to result in higher payments if there’s a personal property coverage claim.
Replacement cost coverage tends to provide greater protection than actual cash value coverage. It’s usually preferred, but might not be necessary in select cases. A knowledgeable insurance agent can help evaluate each of these personal property coverage options.
What are the different types of homeowners policies?
Insurers group similar policies together and use abbreviations for each category. Here are some types of policies and their abbreviations:
- HO-1 Basic Form: These tend to protect against a limited number of specified perils.
- HO-2 Broad Form: These tend to protect against additionally specified perils.
- HO-3 Special Form: These tend to protect against perils other than what’s explicitly excluded.
- HO-5 Comprehensive Form Policies: These tend to have fewer exclusions than special form policies.
- HO-7 Mobile Home: These are primarily used to insure mobile and manufactured housing.
- HO-8 Older Home: These are primarily used to insure older houses and historic homes.
How can Texas homeowners get homeowners insurance?
If you own a home in Texas and are looking at insurance options, get in touch with us at WN Insurance. Our independent agents are specialized in homeowners insurance policies and can help you find the right policy for your residence.