Houston Home Insurance Policy Basics - Houston Homeowner Insurance Policy Basics - Texas Home Insurance Policy Basics
In general, your Texas home insurance policy will cover the repair costs to fix or rebuild your Houston home (and even structures on your property like a shed or detached garage) in the event of some catastrophe, or peril. Some perils covered are a fire in your home, damage due to a fallen tree, or even wind damage. In addition your Houston home insurance policy will cover most of the personal items in your home. A very important area of coverage in your Houston home insurance policy is the personal injury protection that covers a claim if one is filed against you. Your Houston home insurance policy also covers additional living expenditures: If a fire, storm or any other listed disaster causes damage to your home and you are not able to live there, this policy will pay for the additional costs of staying away from your home for a temporary period.
Another thing to be aware of, many Houston home insurance policies do not cover losses due to flooding as a result of living in a flood plain, earthquake damage caused in the event of an earthquake, or water damage from a broken water pipe in a bath or kitchen. These types of catastrophes are covered by additional insurance policy options. Generally, when you get your mortgage for the first time, your mortgage company will specify what types of coverage they require. Make sure you check with your insurance carrier for a list of what is covered and what is not.
Below is a description of the most common Texas home insurance policy available for Houston home owners:
HO-A (Basic Named Perils Policy) - The HOA Home Policy is the most basic and simple home insurance protection. The HOA policy will only protect you from specific perils such as fire, wind, and hail. If something happens to your home other than the perils listed on your policy, you are not covered under the HOA. HOA provide extremely limited actual cash value coverage of your home and its contents. Only the types of damage specifically listed in the policy are covered.
HOA+ (Broad Named Perils Policy) - The HOA+ Home Policy provides broader coverage than the HO-A policy but less coverage than an HO-3. This protection covers your dwelling and your personal property including fire and lighting, windstorm or hail, smoke, theft, vandalism, falling objects, accidental discharge or overflow of water, and sudden & accidental damage from artificially generated electric current.
HO-3 (Replacement Value Policy) - HO-3 provides replacement cost coverage for most types of damage, except those specifically excluded in the policy. Generally, HO-3 policies provide the most coverage for the price.
HO-8 (Policy for older homes) - HO-8 covers the same perils as HOA+ but pays only for repair costs or actual cash value, since replacement cost could make the policy costly. This policy is well-suited for older homes whose market value is considerably less than the cost to rebuild them.
TDP-1 (Dwelling only policy) - Used by landlords to cover their rental policies. TDP1 is the least expensive policy type and covers basic risks.
Regardless of what type of Texas home insurance policy you need, ABC Insurance Services is ready to help you get all the information you need to make an informed decision!