What to Expect from Texas Home Insurance Coverage

Generally, most home insurance policies in Texas will cover loss due to fire, lightning, theft, vandalism, windstorm or hail. The policy may not cover loss due to termites, earthquakes, flooding, mice and or rats.

Many types of policies are sold to homeowners in Texas, three of the types that are standardized are HO-A, HO-B, and HO-C. For these types of policies the coverage will be exactly the same from provider to provider, even though they may charge a different rate or the coverage. For example, an HO-B policy at Nationwide will be exactly the same as an HO-B policy offered by Allstate, only the premium may be different.

The Texas HO-A Plan

The HO-A has very limited coverage (minimal cash value) for your home and personal possessions, you need to review it and be very clear about its limitations.

HO-B Plans in Texas

The HO-B policy provides replacement cost for your home and personal possessions for most types of damage, the types that are not covered will be spelled out in the policy. It appears the HO-B policy is the best value for your money, but not all companies will offer the HO-B policy as an option.

HO-C Home Owner's Insurance

The HO-C policy provides the most extensive coverage, but they are also the most costly.

Premiums for Home Insurance in Texas

Generally, Texas homeowners pay the most expensive premiums for coverage in the United States. Texans pay approximately $1,372 per year for coverage compared with a nationwide average of $764.00. They are followed closely behind by Louisiana as the second highest and Florida as the third highest. This is primarily due to location and weather conditions of the area such as hurricane, hailstorms and other catastrophic events. Even though laws were passed in 2003 so Texas homeowners would get relief from the high cost of premiums, not much progress has been made.