All homeowners insurance policies are not equal, and those sold in Texas are an example of how different insurance coverage can be from policy to policy. The facts surrounding Texas homeowners insurance policy requirements are clear and set forth by the Texas Department of Insurance. However, those requirements merely set guidelines by which insurers must refer to in offering coverage to consumers.
There are two types of insurance policies sold to protect homes — all risk policies and named peril policies. All risk policies are very common and typically extend broad coverage to consumers. Named peril policies, on the other hand, cover losses stemming from only the types of conditions and circumstances outlined in the homeowners insurance policy.
Texas homeowners must also choose between insuring homes for their actual cash value or their replacement value. Typically, replacement value coverage is preferred, as it guarantees a homeowner can rebuild without extensive out of pocket costs. Insuring for actual cash value takes into account the home’s depreciation, which could result in significant out of pocket costs.
Certain types of homeowners insurance coverage are not standard in Texas. For example, the state does not require insurers to protect against earthquake damage, per the minimal history of damaging earthquakes in the state. Similarly, flood coverage is not standard on Texas homeowners insurance policies, and must be purchased separately.
Finding an Insurance Agent
If you live in or around the Lufkin, Texas area and are in search of insurance protection for your new or existing home, contact our office for assistance. When you utilize our services, you are in the care of an independent agent who is devoted to the consumer, rather than a specific insurance company. We can give you multiple quotes from leading Texas insurance providers, as well as guide you in determining which policy is right for you. If you could use an advocate in your insurance buying process, contact our Lufkin agency today.