Texas Homeowners Insurance Requirements

Texas has certain rules for insurance companies that provide homeowners insurance, but it has no laws requiring the homeowner to actually carry insurance. However, any Texas homeowner who has a mortgage will be required to carry Texas homeowners insurance.

Whether you are required to carry insurance by your mortgage company or elect to carry insurance because someone told you it is the prudent thing to do really does not matter. Knowing the types of available coverages and why it is smart to carry homeowners insurance will make you a better educated consumer.

Liability Insurance

This type of coverage protects you up to the limits of your policy for any liability you might incur if someone injures themselves while inside your house or on your property. While not every claim is legitimate, there are many that are. If someone does get seriously hurt and requires extensive medical care, the cost for treatment can easily run into the tens of thousands of dollars, if not much more. Being that your house is the biggest — or one of the biggest assets you own — it is prudent to transfer the risk to a much more financially capable insurance company than try to self-insure against any possible contingency.

Dwelling Coverage

This very important part of a Texas homeowners insurance policy covers the many perils that can befall a home. It typically covers damage or destruction from such perils as fire and lightening, smoke, explosions, theft, sudden and accidental water damage, and windstorms. A separate rider may be required for Texas residents who live on the hurricane-prone Gulf coast. A few of the perils not normally covered in a standard Texas homeowners policy, but for which coverage can be had for an additional premium, are damage or destruction from floods, earthquakes, termites, and losses to a house that is unoccupied for more than 60 days.


This coverage takes care of your personal property such as furniture, clothing, appliances, and electronics kept inside your home. A general rule is that your homeowners policy will provide 50% of the dwelling coverage to protect the total amount of your personal property. If you have valuable collectibles, art, expensive jewelry and so forth, you can purchase additional coverage.

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