Homeowners Insurance in Texas

What is homeowners insurance?

Purchasing a home is the largest investment that most people will make, and it thus should be protected. One important step Texas homeowners can take to protect their houses is purchasing homeowners insurance. 

Homeowners insurance normally provides coverage for a house, personal belongings, the policyholder. Policies typically come with both property and liability protections.

What Texas residents need home insurance?

Most Texas homeowners ought to insure their residences with home insurance. Homeowners who have mortgages are usually required by the terms of their loan to carry minimum coverage. In many cases, homeowners would be wise to purchase more coverage than a mortgage requires.

What protections do home insurance policies come with?

Homeowners’ policies normally come with multiple coverages. Protections that are commonly available as either standard or optional features include:

Are high-value belongings covered by home insurance?

Personal property coverage generally provides protection for most belongings that a typical homeowner would have. Insuring basic belongings such as standard furniture, dishes, clothes, books and decor usually isn’t an issue. High-value belongings might require some additional consideration when setting up this coverage, though.

Many homeowners policies have specific personal property limits for high-value belongings, and these limits can be less than the value of belongings. For example, firearms, electronics, collectibles, jewelry and actual silverware might only be covered for a few hundred or thousand dollars. These items can be worth multiple thousands, especially when the total value of a collection is calculated.

When additional coverage is needed for high-value belongings, an insurance agent who specializes in home insurance can help secure additional protection. They might recommend selecting a higher coverage amount, adding an endorsement, or purchasing a different policy.

What are force-placed homeowners policies?

Mortgages often require homeowners to maintain minimum insurance coverage on their house, so the lender’s interest in a house is protected. Should homeowners fail to maintain the minimum required coverage, the lender might purchase force-placed insurance.

Force-placed homeowners policies are purchased to protect a lender’s interest in a property. The insurance typically doesn’t provide additional coverages that the homeowner benefits from, and the policies tend to be quite expensive compared to standard homeowners policies. The cost of coverage is paid by the homeowner, as it’s typically added to the monthly mortgage payment.

So long as homeowners maintain their minimum required coverage, they shouldn’t have to worry about forced-placed insurance. Of course, it’s recommended to carry additional protections beyond what lenders require.

Can homeowners policies underwritten in Texas cover residences in other states?

The homeowners’ policies that are underwritten in Texas usually can only insure residences within the state. Homeowners who need coverage for a second property in Montana, Colorado or another state should speak with an insurance agent who’s licensed in that state.