Texas Homeowners Insurance Requirements

Gather RequirementsTexas homeowners insurance plans give residents in the state plenty of versatility for finding the right plan for their needs. Whether you are looking for Ft. Worth homeowners insurance, Dallas homeowners insurance, or Austin homeowners insurance, you can find all the fundamental information you need to know before purchasing Texas home insurance right in the answers to the following three questions.

What kinds of Texas home insurance coverage plans are available?

Although some residents of Texas choose homeowners insurance that covers just the home, there are plenty of other insurance coverage plans to consider to protect all of your property in case of an accident. For example, you can choose a dwelling insurance policy, which pays for structures of the home that are not attached such as fences, garages, storage sheds, etc. You can also cover personal property, liability, medical payments, and loss of use through Texas home insurance.

What are the different types of policies that Texas insurance companies offer?

Texas home insurance companies carry five basic policies that cover all of your homeowners insurance needs. The five basic policies include HO-A policies, HO-A amended policies, HO-B policies, HO-C policies, and alternative policies. The further the letter is in the alphabet, the better the coverage. Alternative policies vary depending on which Texas insurance company you purchased it from, so be sure to double check your policy information.

What is the difference between the homeowners insurance terms “replacement value” and “actual cash value?”

Replacement value is when your Texas insurance plan covers the cost of replacing whatever was damaged in the accident– from the home itself to the property inside. Actual cash value is when your Texas homeowners insurance pays for the price of your property minus the depreciation in value. For example, your laptop computer may have cost you $1,500 at the time, but may only be worth $800 by the time it was damaged. Because of this, many people prefer replacement value plans for their Texas home insurance.