Understanding Homeowners Insurance Coverage Types in Texas

Owning a home is a big responsibility. There are many expenses that do not coincide with paying the mortgage and property taxes. As a homeowner, you must keep the roof in good condition, repair or replace appliances, fix the air conditioning and heating systems, and address structural problems inside and outside of the house. These problems add up over time and can decrease the value of your home.

Take measures to protect this important investment, such as by purchasing homeowners insurance. Find insurance by shopping online or calling up a carrier and getting a free quote. Ask questions about the coverages proposed for your policy and compare quotes from different insurance providers. When you’re looking for homeowners insurance in the state of Texas, you should understand what kinds of coverages you are trying to purchase.

If you are new to understanding homeowners insurance, there are common terms that you need to understand. In the most basic sense, the homeowners insurance is going to protect your home, the property within, and some external structures in the event that it is damaged or destroyed by a covered event. Under homeowners insurance, not all events are covered, and therefore it’s important to read the details in a proposed homeowners insurance policy. Your homeowners insurance may also include coverage for loss of use, personal liability, and medical payments. These common types of coverage are explained below:

  1. Dwelling. When you search for homeowners insurance, look for this kind of coverage to insure your home’s whole structure for a covered loss.
  2. Personal property. Under a homeowners insurance policy, he things that are inside your home may be covered, which includes items such as clothes, furniture, and appliances. This coverage also applies to theft and vandalism.
  3. Other structures. Coverage for the buildings that are not attached to your home is also a good idea. Weather events, fires, and other situations can cause damage to separate garages, storage sheds, and fences.
  4. Loss of use. When damage occurs to your home, you and your family may not be able to live there temporarily. So, this kind of coverage will cover your cost of living for food, housing, and other basics while you are staying elsewhere until the home is restored to livable condition. In Texas, this is calculated as a percentage of the dwelling coverage (10 to 20 percent) or for a specific time following the event (such as 2 years).
  5. Personal liability. This is an important component of the homeowners policy that you want to have in case you are ever sued in court and determined to be responsible for someone else’s injuries or property losses.
  6. Medical payments. The chance that someone can get hurt on your property may seem small, but the more you have people do work on your home or come over for special gatherings, the more important this kind of homeowners insurance is. This could also potentially cover events outside of your home, for example, if your dog bites another person at the beach. Check your policy to see if there is a dog bite exclusion. In Texas, you can purchase anywhere from $500 to $5,000 in medical payments.

Before you sign any agreement or make a purchase of a Texas homeowners insurance policy, ensure that your proposed product would include these coverages. You can always buy more homeowners insurance to give yourself extra protection against financial losses. Compare quotes from different homeowners insurance carriers and see how they stack up. In the end, a little research will be worth the peace of mind.