Having a comprehensive insurance policy is an absolute must for any homeowner, but finding the right policy isn’t always easy. With Obrella, however, shopping for and choosing home insurance is a cinch. You can connect with professional insurance experts, who will put their in-depth knowledge of Texas home insurance to work for you. They can help you sort through your options from several providers and customize your coverage depending on your needs. They can even bind your policy—all in one simple call.
Texas Home Insurance Costs
In Texas, home insurance premiums cost an average of $1,661 per year. That’s over $600 more than the national annual average of $1,034. Those premiums place Texas as the third most expensive state in the nation for home insurance costs.
- Median Home Value: 145,500
- Household Income: 53,875
- Percent of Income on Home Ownership: 27.40%
Your home is one of your biggest investments, especially seeing as the median home value in Texas is $128,900. Texas ranks as the 17th least expensive state when it comes to how much homeowners spend on home ownership costs. Seeing as Texans have a median household income of $51,704 and homeowners in this great state spend a little over 27% of their total household income on home ownership, it makes sense you want to protect your investment.
As a Texas homeowner, you know the importance of home insurance. Let one of our insurance experts help you evaluate whether your policy is giving you all that you need at the best price available. Call [mapi-phone-link /] to get home insurance quotes in Texas today.
Why Are Home Insurance Premiums So High in Texas?
An insurance company looks at a variety of components to determine the cost of your home insurance premium. The process starts with an evaluation of your home and region, including local building costs, crime rates, the size of your home, and the year it was built. Premiums can also be affected by environmental factors, such as the likelihood of floods, tornadoes, or earthquakes in your region. A range of other factors can also impact your insurance premiums like whether you have a swimming pool or guest house and even your credit score.
What can be deduced from these details? These elements combine to determine the amount of risk the insurance company will take on when issuing you a homeowners insurance policy. The higher the risk, the higher your premium.
Different areas of Texas have different crime rates. One contributing factor to the high rates is the prevalence of weather events like hurricanes. These types of events creates a lot of claims at once, sometimes across multiple states for home and auto insurance. A homeowners policy is priced with a coverage limit based on the replacement cost of the house. The cost of homeowners insurance has to account for the cost to pay that and still make a profit year over year.
Thankfully, you can take action to lower these risks. Making your home more secure is a good start. Installing a complete home security system, for example, can lower the likelihood that your insurance company will need to pay up in the event of a burglary. Even installing motion-sensitive lights and surveillance cameras can lower your risk and therefore your premium. If you live in a hurricane prone state like Texas, you can also buy specialized glass, hurricane clips, etc. to protect your house from severe damage.
Texas Homeowners Insurance
Many home insurance companies in Texas give you a range of coverage options to choose from; here are a few examples:
- HO-1: Limited Coverage
- An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- HO-2 policies are designed to provide coverage in the event that your home is affected by any of the 16 classified disasters. This is a named peril policy. So if the cause of the damage is not specifically named in your policy, your home insurance companies don’t have to cover the damage.
- HO-3: Standard, most popular
- HO-3 policies are open peril policies. So unless it’s named in the exclusions, the insurer will cover the damage. Keep in mind, many of the exclusions are very broad. So if you searched for something specific like a “broken water pipe”, you wouldn’t find it in the exclusions. But you might find something else that would cover water damage.
- HO-6: Condos:
- HO-6 policies are meant exclusively to cover condos. They cover everything from the walls-in meaning flooring, carpeting, cabinets, appliances, etc. But they do not cover the building itself.
- HO-8: Older Home
- As homes age, the cost of repairs to the house may exceed the actual market value of the house. With an HO-8 policy, you’ll receive reimbursements for damage on an actual cash value basis, rather than the full cost of the repairs. Older homes may not qualify for policies that cover the full replacement cost of the home in the event of a total loss.
- Landlord policies can be adjusted to cover more personal property, etc. The average cost is often lower, though, because it’s focused on covering the building, but not necessarily all the liability and personal property it would if the property owner lived there.
What Is Standard Texas Homeowners Insurance Coverage?
Not everyone is aware that they are only covered if the damage to your home is caused by a specific situation outlined in your policy. If your home is damaged by a flood, for instance, but your policy does not cover flooding, your insurance company will not pay for any damages to your home. Below are common home insurance coverage definitions to help you navigate the specifics of your policy:
- Coverage A – Dwelling
- Protects against damage to the home and attached structures. This includes damage to the home’s plumbing, wiring, and permanent air-conditioning and heating systems.
- Coverage B – Other Structures
- Other Structures coverage protects any structures that are not connected to the home. This includes free-standing sheds, fences, guest homes, and detached garages.
- Coverage C – Personal Property
- In the event of damage or loss of personal possessions, Personal Property coverage will compensate the homeowner for the value of the item be it clothing, furniture, electronics, or jewelry. Personal Property coverage even covers damage to or loss of personal belongings if the theft, loss, or damage occurs outside the home meaning any items kept in a storage unit are covered as well.
- Coverage D – Loss of Use
- With Loss of Use coverage, the homeowner can get reimbursed for living expenses during home repairs.
- Coverage E – Personal Liability
- Personal Liability covers the homeowner’s financial loss in the event of a lawsuit in which the homeowner is found legally liable for another’s injuries or damages.
- Coverage F – Medical Payments to Others
- Covers medical bills if anyone gets hurt by the homeowner’s pet or on the homeowner’s property.
Where Can Homeowners Find Texas Insurance Resources?
The Texas Department of Insurance : looks out for homeowners by regulating the Texas home insurance market. The department provides price comparison tools and worksheets to help you find the right insurance at a competitive price. They also regulate and license insurance providers. If you have a complaint or need to file a claim, the department provides resources to help. You can contact the department toll free at 1 (800) 578-4677 or locally at 1 (512) 676-6000.
Which Homeowners Insurance Company Is Right for You?
Finding the right home insurance policy can be complicated. The average rates are not the only consideration. Each homeowner needs to make sure they’re getting sufficient coverage and protection. Many consumers also want to be sure they’ll get a fast response if they have a claim.
That’s why Obrella makes it easy to find an ideal home insurance policy for your lifestyle. In one simple call, you can talk about your insurance needs with a knowledgeable agent who will help you find the perfect coverage option for you. Wrap everything up in one phone call with over-the-phone binding!
Have questions about your home insurance policy options in Texas? Get in touch with an experienced insurance agent today at [mapi-phone-link /].