Homeowners insurance is a vital set of coverages to protect against damages and theft within a property, usually secured against its fair or full price. It is usually arranged and provided at the time you move into a home, but plans can also be adjusted in other circumstances as well, such as if you are renovating and extending your property.
In certain rental scenarios, landlords may include the cost of renters insurance in their contract. But it’s a different story once you buy your own home and become responsible for your own property’s insurance. What are the vital tenets of homeowners insurance, and what should you know before looking for coverage in Texas?
What Is Homeowners Insurance?
Homeowners insurance protects your home from many types of damages by providing you with financial compensation for damages if and when they occur. Lenders and mortgage companies require homeowners insurance as a standard, as it provides a guarantee of recompensed value should something happen to the property.
This means that it’s often a first requirement if you’re looking to purchase a home through conventional means.
What Does Homeowners Insurance Cover?
Homeowners insurance in Texas can differ slightly depending on the package you sign for, but it will generally offer you protection against the most common accidents and damages that could occur on your property.
This involves fires, lightning, vandalism, theft, and weather damage. However, flood damage, earthquake damage, and personal damage are rarely covered in homeowners insurance without special additions.
Furthermore, additional structures on your property, such as a lone-standing garage or barn, are generally not covered and may require additional insurance. Additionally, incredibly rare natural disasters known in legal terms as “acts of God” (such as tornadoes or tsunamis) are not covered, as well as acts of war.
In Texas, some areas directly along the Gulf Coast will be ineligible for windstorm, hail, and hurricane insurance. However, these areas may be able to receive coverage and aid from the Texas Windstorm Insurance Association (TWIA).
It’s worth speaking to your provider or broker to see what eventualities are the most important to cover in your area, and what extra accommodations you may wish to insure against.
Do You Need Special Coverage?
Your need to purchase specialty home insurance depends on where you live and what events you are likely to encounter. However, opting for more than the bare minimum of coverage is often a good idea, because knowing you’re protected is not only worth its potential financial reimbursement, but also your peace of mind.
Special coverage may include protection against flood, earthquake, or tornado coverage, as discussed. If you own valuable items such as a jewelry collection or collectibles you wish to insure, you could also add special coverage for your valuable personal items.
Often, purchasing a floater policy allows you to insure your individual valuables piece by piece.
How Much Does It Cost?
The quote that will be offered to you for the package you seek can vary greatly based on a range of variables. The insurance provider will take all potential risk factors into account when evaluating your premiums and coverage needed.
Factors that will likely affect your insurance cost include the property’s size, its evaluation, and its location. For example, if you’re living in an area with a higher-than-normal amount of flooding or other potentially damaging events, this could increase your rates.
If your Texas home has had multiple claims on it over the past years, that will also factor in. Other indicators, such as how well-secured your property is, if it needs renovation, if you own a security system, your home’s general condition, and more can all play into the insurer’s perceived risk.
Raising your deductible, bundling multiple policies in one, and ensuring your home is well-secured can all help bring down your premiums. Smart home insurance companies are more than willing to work with a homeowner to find the best coverage options, as they know the benefits of mutual cooperation and satisfaction.
