Availing of the homeowners insurance policy is as vital as buying your dream home. It acts as a financial safeguard against any potential damages that might occur to your house in the future in the form of accidental damage, theft, or natural disaster.
Homeowners insurance pays to repair or rebuild your home and replace your possessions if they are lost, stolen, or damaged in a covered event.
There are different types of insurance offered by homeowners insurance companies in Texas. You must understand the coverage that each policy offers to choose the one that best suits your needs.
In this guide, we will discuss the coverages provided by the most common homeowners insurance policies so that you can make an informed decision about the best approach for your home.
Texas Homeowners Policies:
The following coverages are included in the homeowners insurance policies in Texas.
Dwelling:
It is paid to repair or rebuild your home if damaged by a covered event. It also includes coverage for the structure of your home, including the roof, framing, and walls.
Personal Property:
It is paid to replace your personal belongings if they are lost, stolen, or damaged in a covered event.
Liability:
It is paid for damages you are legally liable for in a covered event. It defends you in court against lawsuits and provides money damages if you are found liable.
Medical Payments:
It is paid for medical expenses incurred by anyone injured on your property in a covered event.
Additional Living Expenses:
It is paid for temporary housing and other related expenses (housing, food, and other essential expenses) in case your house is damaged or destroyed. For example, if you temporarily have to move because of a covered event, the additional living expense coverage offered by homeowners insurance companies in Laredo will help pay for your living expenses. Your policy will pay either a percentage of your regular living expenses or a set amount per day.
Other Structures:
It is paid to repair or replace detached structures on your property, such as a garage, shed, or fence, if a covered event damages them.
Other Insurance Coverage not included in Homeowners Insurance, but you might need:
Flood Insurance:
Homeowners' policies don't cover damage from flooding. To protect your home and possessions from flood damage, you must have flood insurance.
You can buy flood insurance through the National Flood Insurance Program (NFIP) or a reliable insurance provider in McAllen, Texas.
The NFIP is a federally funded program that helps people who live in areas prone to flooding. More than 80 percent of Texans live in areas covered by the NFIP. However, NFIP policies have a 30-day waiting period before they become effective. Therefore, it would be best to buy flood insurance before a storm hits your area.
In addition, your lender will require flood insurance if your property is in a high-risk flood zone and you have a federally backed mortgage.
Windstorm and Hail Insurance:
Most homeowners' policies don't cover damage from hail and windstorms. If you live in an area prone to these types of storms, you are in urgent need of securing yourself from such insurance, your homeowners insurance policy will not help you. You will need to purchase a separate hail and windstorm insurance policy to cover you in this event.
The Texas Windstorm Insurance Association (TWIA) is the state's insurer of last resort for wind and hail damage in 14 counties along the Gulf Coast. If you live in one of these counties, you may be required to purchase windstorm and hail insurance from TWIA.
Conclusion
Homeowners insurance is vital for any homeowner, as it protects your home and belongings in the event of an unforeseen disaster or accident.
We hope our guide has helped you understand the different types of homeowners insurance available and each policy's coverage. Remember to shop around and compare homeowners insurance quotes offered by different homeowners insurance companies in Texas before buying to get the most comprehensive coverage at the best price.
Now that you know all there is about homeowners insurance, get a policy today!
