Tips for Buying Homeowners Insurance in Texas

When you have a home to insure in Texas, you want to be sure that you purchase adequate insurance coverage. Not all companies have the same rating for writing homeowners insurance policies in Texas. You want to find the kind of protection that will fully insure your home and its contents and cover different scenarios where the home isn’t habitable. Some companies have historically had a problem writing policies in your part of the state or have exhibited other problems such as not paying out enough claims for the last few years. Work with a trusted insurance company that can still offer you low rates without compromising its financial integrity. Also, look for a company that is reputed to provide good customer service and keep you updated on any changes to your homeowners insurance policy.

Here are some things to look for in a good homeowners insurance policy in Texas:

  1. Sufficient range of homeowners insurance coverages. Get the right kinds of coverage so you aren’t exposed to unnecessary financial losses if your home is damaged or destroyed. You want to purchase coverage for your main dwelling as well as exterior structures and personal property. You could purchase additional coverage for personal liability, loss of use, and medical payments.
  2. Homeowners insurance coverage to match the home’s replacement value. If the replacement value of your home is $100,000, but you only insure the dwelling for $50,000, you are facing a severe shortfall if your home is totally destroyed by a fire or a storm. You need to purchase enough coverage so that the home can be rebuilt in the event of a total loss.
  3. Affordable deductible. Some homeowners insurance companies will try to save you money on monthly premiums by giving you a high deductible. Don’t fall into this trap. If, for example, you have a $2,000 deductible for damage to the dwelling but you couldn’t come up with that sum, don’t buy the policy. Get a deductible that you could reasonably meet if your home is damaged.
  4. Protection for personal property. Having this coverage on your homeowners insurance is crucial if your home is damaged by a flood, a fire, or a tornado. A total loss in the home could destroy all of your clothes, furniture, and appliances. You will want to ensure that the amount of coverage you buy is enough to set you up in a new home or a rebuilt home if the home is totally destroyed.
  5. No deal-breaking exclusions. The simplest way to put this is that your homeowners insurance may not cover certain losses based on predetermined conditions. For example, if you own one or more dogs, you don’t want to purchase a policy with a dog bite exclusion. If your dog bites someone, then you could be sued personally for the damages.

Look for a free quote on your Texas homeowners policy. Your credit rating, the size of your household, the condition of your home, whether you live in a flood zone, and other factors can affect the amount that you will pay for Texas homeowners insurance. If you can find a national, regional, or local company with a good history of paying claims in your community, you are probably good to go. If you find that a company has been fined by the state or placed on probation for insurance related practices, give your business to another homeowners insurance carrier.