Texas homeowners insurance is not mandatory, although it’s highly, highly recommended, for obvious reasons. You don’t want to have a disaster and be left homeless and possession-less; Texas homeowner’s insurance will help protect you from that.
Texas auto insurance is mandatory, however. In other words, if you own and drive a car, you’ll need to have insurance that’s at least liability coverage.
Minimums and requirements for car insurance
- 30/60/25 liability coverage: In Texas, liability coverage minimums are $30,000 minimum for bodily injury per person or up to a total of $60,000 per accident, plus $25,000 minimum for property damage (also known as 30/60/25 coverage).
- Carry proof of insurance with you: You must carry proof of insurance with you in your vehicle. If you’re found to be without proper coverage, you can be fined from $175 to $350 with your first offense; your second offense will be more costly (from $300 to $1,000); and you can have your license suspended and/or have your vehicle impounded if you’re caught a third time without insurance.
- If you have a rental car: If you have a rental car, you also have to carry the minimum liability coverage as required in Texas (30/60/25). Your policy probably already provides rental car coverage, especially if it’s a comprehensive policy. If not, buy appropriate insurance for your rental car before you drive if you don’t already have it.
Requirements for homeowners insurance
Again, although it’s not absolutely necessary for you to have homeowners insurance, you should have it so that you are protected if you’re in a disaster. Before you buy a policy, make sure you check the insurance company’s reputation, speed of claims resolution, and customer service satisfaction. Policy price is important, but customer service is even more important. In addition, make sure you buy enough insurance to repair or replace items at replacement cost, not current value cost. If you don’t, you could find yourself without enough money to repair/rebuild your home or replace your possessions as necessary.