The most important reason for a Texas homeowner to have homeowners insurance is that state law requires it. In order to comply with the law, all homeowners in Texas must have adequate insurance. Though the state of Texas requires all homeowners to have a homeowners insurance policy, there are different options to choose from https://www.texasquotes.com/homeowners-insurance/.
Homeowners in Texas can choose one of two types of homeowners insurance policy. The first of these policies is a comprehensive homeowners insurance that covers virtually all types of damage and personal liability issues. The second of these policies simply meets the minimum homeowners insurance policy guidelines as required by Texas law.
The first type of homeowners insurance policy available in Texas is known as an all-risk policy. All-risk insurance policies cover most types of loss or damage to the insured home; unless the type of damage is specifically excluded from the policy. All-risk policies are the most commonly purchased homeowners insurance policies.
The second type of homeowners insurance policy available in Texas is known as a named peril policy. Named peril policies typically provide the absolute minimum amount of coverage required by law. These policies are completely legal however, the homeowner remains liable for any expenses not covered by the policy.
Homeowners insurance policies in Texas can be broken down into five important categories: dwelling, personal property, loss of use, liability and medical payments. Each of these categories offer specific risks to the homeowner and thus must be protected against. No matter which type policy a homeowner chooses, these essential categories will provide the basic framework of their homeowners insurance policy.
The dwelling category of a homeowners insurance policy refers to the home and surrounding structures. Specifically this part of the all-risk policy provides payment for costs associated with any damage to these structures. Items such as garages, storage sheds and fences are covered under the dwelling category.
Next, the personal property category of the all-risk insurance policy covers items within the home which have been damaged, destroyed or stolen. These items include appliances, clothing and jewelry among others. The state of Texas does not require homeowners insurance to reimburse policyholders for the loss of their personal property items unless this specific type of coverage is in place.
Loss of use is an an important homeowners insurance category that is often overlooked. In the event of serious damage to a home homeowners often have to find temporary accommodations outside of their primary dwelling. These accommodations can be very expensive. A homeowners insurance policy which covers loss of use will provide partial or total payment for all living expenses for a specified period of time.
The liability category covers lawsuits in which the homeowner is found to be responsible for personal injury or property damage. The state of Texas requires a minimum of $25,000 in liability insurance for all homeowners insurance policies. Although $25,000 is the minimum amount of liability coverage, many homeowners choose policies which cover an even greater amount.
Finally, the medical payments category covers the medical payments of anyone who is found to have been injured on your property. In limited cases, this coverage also extends to events that may occur outside of your property. As with the category of liability, Texas requires a minimum level of coverage for each property owner. In this case, the minimum coverage amount is $500. This amount can be raised to as much as $5,000 depending on the severity of injury and cost of treatment.