Texas Homeowners Insurance Guide

Texas Homeowners Insurance

Explore Texas Homeowners Insurance State Guides, Laws and Regulations before You Buy Insurance

The Lone Star State is known for its size and beauty; providing Texans, and visitors with thousands of miles of canyons, rivers, and even waterfalls. Accordingly, Texas is the second most populous state in the country. Whether you live in the bustling city of Houston, or near the sea in Corpus Christi, a big part of being able to appreciate the Lone Star State’s natural beauty is making sure your home and property are safe. Although home insurance is not legally required in the state of Texas, its surely a good idea to have it. Not only for peace of mind, but to protect you and your family’s assets. That said, if you have a mortgage or are a part of a condo association, you may be contractually obligated to maintain proper homeowners or renters insurance.

Why Do I Need Homeowners or Renters Insurance?

Besides the more obvious perils that homeowners or renters policies cover, such as fire, theft or vandalism; Texas presents a few distinct risks that are unique to its location, terrain and climate. These risks include flood and windstorm or hail. Given part of Texas borders the Gulf of Mexico, those cities such as Galveston, Corpus Christi or even Houston can endure significant rainfall, flooding and hail. Recall the damage Hurricane Harvey inflicted on Southeast Texas in 2017. Needless to say, these coverages are virtual necessities for those people that reside along the Gulf coast.

What is the Cost, and How Can I Save?

As you prepare to find the right property carrier and coverage to protect your home and personal property, note that carriers typically take into account the home’s age and condition, your credit score, the neighborhood, proximity to local fire protection, and several other variables when calculating your rate.

Texas 2017 Homeowners and Renters Premium (Averages)

Source: Insurance Information Institute (2017)

But even if you score well on all of these objective parameters, note that Texans on average pay significantly more than the rest of the country for homeowners and renters insurance. You can buffer the financial impact of these premiums by ensuring your home has a burglar alarm, dead bolts, and that you stay claim free. There are other subliminal actions you can take that could help as well, such as keeping your house and yard in good shape, as carriers will send someone to inspect the outside of your property during the application process.

Where Do I Start?

Given Texas’ size, you have several options. You will find many large national as well as smaller, regional carriers that can offer great coverage. Allow your specific circumstances to guide you to the proper carrier. As you refine your search process, you may also find that some carriers will exclude perils such as windstorm or hail, which could be fairly important to you. A few of the larger carriers are listed below.

Source: Texas Department of Insurance (2018)

Note that if you cannot find a carrier that will insure your home, you still have options. One is coverage through the Texas FAIR Plan Association, which was created for those risks that have been turned down by at least two carriers. Another option is through surplus lines companies, which are typically out-of-state companies that are willing to take on a bit more risk than the average carrier.

Texas Regulating Agencies And References

Texas Department of Insurance

Insurance Information Institute