Texas Homeowners Insurance

The State of Texas is the biggest State in the United States in terms of surface area and in term of population, and for this reason the Texas homeowners insurance market is very competitive. The United States Census Bureau estimates that in the year 2006 there were approximately 23,507,783 people residing in the state. This is an increase of about 12.7% from the year 2000 and experts predict that the state will only get bigger up to the 2010 census. With so many people it is no surprise that its residents are the ones that spent the most money when it came to homeowner insurance in the last few years.

Rates For Texas Homeowners Insurance

People within the state know that insuring a home in the “longhorn state” can be relatively difficult at times. A reason for this is that they are a huge state and home to many possible natural disasters. Forbes Magazine in the year 2005 published a list of the top states that paid the most for homeowner insurance rates and glorious Texas came up on top.

With an average homeowners insurance rate of approximately $1238 a month the Texans were the highest in the list and for obvious reasons. In the past years people of this state have gone through hail storms, have had tornado warnings, hurricane watches and warnings; and let us not forget that the weather of Texas is perfect for those ugly mold scares.

Texas Homeowners Insurance In Detail

Homeowners insurance can be defined simply as a contract between a company and a private owner of a home. The contract simply states that the company will pay the person insured in the case of a disaster to their home. Every single policy in the state gives a person coverage for the value of their home. This is important because the homeowner insurance company will pay the insured the money that the whole property is worth in case of an accident. Some things covered in this part of the policy include damages due to fires, hail, hurricanes, tornadoes, lightning and many other things specified in the policy. It is for this reason that people should always be certain to read their policies in their entirety before signing them.

Another part of the policy covers the possessions inside of the home. Insurance Companies usually give a customer up to 50% to 70% the value of their home in possessions. An example of this is that if the property costs  approximately $100,000 then the company will pay the customer from $50,000 to $70,000. It is important to highlight that they will sometimes cover your possessions when you are away traveling.

The other two important parts of a Texas homeowner insurance policy simply allow the person to be covered for liability and expenses if anything happens to their property. By liability companies mean that if there is a person injured within your premises they have no need to sue you. They can simply contact your homeowner insurance company at their discretion and your company will deal with them. The other part simply pays for the expenses that a family or a person has to pay for after their property has been damaged due to anything covered under the policy.

How To Find Texas Homeowners Insurance Companies

Compare Texas Homeowners Insurance Quotes to Save Money

Once you are on one of the various insurance websites then you can fill in a questionnaire and they will give you the amount that you will have to pay. You could also go to websites that give you many different quotes from a variety of websites. This will allow the customers to only fill their information once and receive sometimes up to twenty quotes from many different homeowner insurance websites. Use our free Texas homeowners insurance quote engine located at the top of the page to compare quotes from multiple insurers side by side!

The important thing about that is that you should be able see the different prices that many companies offer you. If you see that there is a price that catches your eye, and then try to find the company website and see the different services they offer. One thing to highlight about the comparison websites is that you must always make sure that they are independent. A reason for this is that if the website is independent they will give you quotes from a wide variety of insurance companies, but if the website is associated with one of the insurance companies it will tend to only show quotes from that particular insurance company.

You can also check out the homeowner insurance companies in your local area in person. You could either use the local yellow pages to get the addresses and phone numbers of the companies, or just use the internet for that information. Once you have about 3 or 4 companies then take time to visit their facilities and ask their agents about the homeowner insurance business and the different things you don’t understand. When you visit the company in person you will also be able to see how they operate and how they treat their customers.

Top Texas Homeowner Insurance Companies

Here are some of the most popular property and casualty (auto and homeowners) insurance companies offering auto, homeowners, or auto and homeowners insurance coverage in Texas. Note that you may often be able to get a discount by purchasing your auto and homeowners insurance from the same insurance company (called a “multiples lines discount”).

1. State Farm Insurance

2. Farmers Life Insurance Company

3. Time Insurance Agency

4. GEICO

5. Esurance

6. Farmer’s

7. AIG

8. All State

9. 21st Century

10. Progressive

11. Liberty Mutual

12. Nationwide

A Few Helpful Terms To Better Understand Your Texas Homeowners Insurance Policy

1. Damages: The sum of money that one party pays another for an injury or another type of loss.

2. Declarations: A section of an insurance policy which provides detailed information about the policy. Name of the insured, address, the property insured, location and description of property, the policy period and the premium amounts are all found in here.

3. Deductible: The amount of money an insured agrees to pay toward the total amount of a loss.

4. Depreciation: The decrease of property value over the course of the years due to use, wear and tear, and obsolescence.

5. Direct Loss: This is damage or a loss which is a direct result from a particular situation.

6. Dwelling Coverage: Refers to the section of a homeowner insurance policy that covers a house, attached structures (garage, shed), and the personal property in it. These forms vary by the amount of coverage you hold.

7. Easement: This entitles the holder to specific interests for example using the land owner by another to access your own property.

8. Equity: The amount of money that you build over the years of home mortgage payments that can be paid back to you.

9. 80% Rule of Co-Insurance Rule: Requires your home to be insured for at least 80% of the full replacement cost at the time the property is damaged or destroyed.

10. Guaranteed Replacement Cost: Coverage that guarantees the home insured will be repair to it’s previous condition at the time of the loss.

11. Indirect Loss: Loss resulting from an accident, but not directly caused by an accident.

12. Lender: The bank or mortgage company that that you borrowed money from in order to buy your home.

Texas Homeowners Insurance Can Be Yours!

Texas is a big state with many residents. There are many houses and many farms; hence the homeowner insurance business is booming. If you want information about homeowner insurance companies in your area then use our free TX homeowners insurance quote finder at the top of the page. Save yourself some time and money by comparing Texas homeowners insurance rates from competing insurance companies online. Get started saving money now!

The Importance Of Texas Homeowners Insurance

Texas homeowners insurance policies will give you peace of mind should disaster strike your home in many unexpected ways. Choosing to protect your most important possession, your home, and its contents with homeowners insurance from a reputable Texas provider is one of the wisest financial decisions you can make.

Every insurance company has its own guidelines, coverage options and premiums. However, anyone who owns a home in Texas can and should carry insurance. Education about your options is the key to making the best possible choices.

There are a variety of things you, the consumer, should be aware of as you investigate the homeowners insurance options available in Texas.

What Your Texas Homeowners Insurance Policy Covers

Why do you even need to carry homeowners insurance? What does it protect you from? This type of coverage is not only to satisfy the mortgage company. It is meant to help you replace items that you lose or are no longer usable, due to a variety of situations.

It provides protection, so you are not seriously burdened financially, should disaster strike. It allows you to put your life back together relatively easily after bad things happen. A wide variety of events are covered:

1. Fire – including explosions, smoke damage, total and partial losses.

2. Theft – costs to repair damage due to break and entry, in addition to replacing the value of the stolen goods.

3. Vandalism – restoring the home to its original condition.

4. Natural Disasters - such as damage from wind, lightning and hail.

5. Freezing – damage from broken pipes due to cold temperatures.

6. Liability - in case you are held responsible for another’s loss or injury.

7. Medical Expenses - should someone get hurt on your property.

8. Loss of use - if your home is unlivable, due to one of the covered scenarios.

It is very important to review your TX home insurance policy and understand what it covers and what it does not. In areas that are prone to hurricanes, there may be exclusions on your policy or limitations in order to make it more affordable. Many types of damage or loss are not covered by typical homeowners insurance policies, such as damage from earthquakes, neglect, pests, flooding and more.

Mold claims have been problematic in the state of Texas, and therefore how they are handled differs from company to company. Certain personal possessions may also require separate riders to insure them to their full value, especially for high-value items like jewelry. Find out as much as you can about homeowners insurance to make sure you are adequately covered.

Choosing The Right Type Of Texas Homeowners Insurance Policy

What makes TX home insurance policies different from one another is how they value your home and the things in it.  There are two ways your policy can be set up to deal with losses.

1. Actual Cash Value – In this case, your home and personal property would be given a value based on what it would cost to replace the item, minus any depreciation, from age or use. Therefore, if you lose an item that is older but is still functional, you may not end up with enough money to buy a suitable replacement and definitely not enough to buy a comparable new item.

2. Replacement Cost – With this type of coverage, your home and personal property are valued at what it would cost to replace them in today’s market. This is often a more desired type of coverage to carry because it protects you from completely from the devastation of losing your home and/or possessions.

There are three standard types of homeowners insurance policies available in the state of Texas. They can be demystified by their use of actual cash value and replacement cost. Amended and alternative policies, which are spin-offs of these, may also be a better fit for your insurance needs.

1. HO-A is standard policy that offers only actual cash value cost and is very strict, in that it will only cover specified types of losses.

2. HO-B is often preferred because it will replace losses at replacement cost, but it does have exclusions on the policy against certain scenarios.

3. HO-C is the most comprehensive type of homeowners insurance available in Texas, but is usually very costly.

Getting Great Texas Homeowners Insurance Rates

When shopping around for the best policy for your dollar, be sure to ask about the different discounts available for your policy. Quite often it is up to you to ask if a company offers better rates and how to obtain them. Each insurer offers something slightly different, so you should be aware of what to ask about. Lower rates are often offered in the following cases.

1. Multiple policies with the same insurer – By insuring both your home and auto, and even other types of policies with the same company, often discounts are available.

2. The use of home security systems – Installing an alarm, and especially a centrally connected system, increases the security of your home and diminishes response time for fires, break-ins and other situations that are time-sensitive. Insurance companies often reward this type of investment with a premium break.

3. Age of the owners – Senior citizens often get discounts on their rates.

4. Age and condition of the house – This often affects how your rates are calculated and may enable you to get additional discounts.

5. Group or affiliation discounts – Insurance companies will offer preferred rates to employees of large companies, unions or members of professional groups. Mention any groups you belong to when shopping for your homeowners insurance and ask if they offer discounts to their members.

6. Having basic home safety equipment – Just by equipping your home with the right number of fire extinguishers, smoke alarms, fire alarms and sprinkler systems, you can often save yourself on premiums.

7. Identifying your possessions – By engraving or otherwise permanently identifying your things with a specific number, your company will often discount your rate following an inspection of the items.

8. Being claims-free – If you have not made claims against your homeowners insurance policy in the past few years, be sure to ask the companies you are getting quotes from if that will impact the price.

Discounts are also available for homes with certain types of roofs and for taking out full-replacement cost on your home and its contents. Ask the agent you are dealing with to ensure you have every discount you are eligible for. It could make a big difference in the bottom line.

According to the National Association of Insurance Commissioners, Texas has the highest homeowners insurance rates nationwide. This may be due to the average construction costs in the Lone Star State, the frequency of hurricanes hitting the area, the high rate of mold claims, government regulation of the industry in the state or a combination of these and other factors.

The smartest thing for consumers is to do is to regularly and carefully shop around for the best price on coverage.

Compare Texas Homeowners Insurance Quotes Now!

To get rate quotes from top Texas homeowners insurance providers, simply return to the top of the page and take a few moments to begin the process now!