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Homeowners insurance in Texas for 2021: What you need to know

Homeowners insurance

If you’re planning to buy a home to live in or as an investment, one of the things you have to know about is homeowners insurance. In Texas, you’re not required by law to get one, but most lenders will require you to have homeowners insurance as part of the mortgage approval process.

Homeowners insurance is a type of coverage that protects you against losses and damages to your home, as well as assets like furniture and other personal belongings within the property. It will be very useful to understand the different types of homeowners insurance options and the common causes of loss in the state so you can pick the coverage that is most suited for your needs.

Homeowners insurance in Texas

A homeowners insurance policy in Texas typically includes the following types of coverage:

Dwelling coverage – This is the most standard insurance policy, covering any physical damage to the home and its attached structures.

Personal property coverage – This covers your belongings, whether found inside or outside the house.

Liability coverage – This type of coverage protects you in case someone gets hurt in your property, or if you cause damage to someone else’s property.

Guest medical protection – This covers medical expenses for people who get injured while in your property.

Some coverage types are not included in a typical homeowners insurance policy, but depending on where you live, as well as the age and condition of your home, you may get better peace of mind if you can acquire them separately. These include:

  • Flood insurance
  • Wind or hail insurance
  • Seepage/leakage (covering damage from slow leaks coming from cracks inside the home)
  • Water backup coverage (covering damage from the backup of sewer lines typically caused by heavy downpours)

The most common insurance claims in the state

In Texas, some types of insurance claims are more common than others. Hurricanes are among the most significant sources of claims in several parts of the state, including in Brazos Valley. To illustrate, 2017’s Hurricane Harvey had total costs of $125 billion, according to the National Oceanic and Atmospheric Administration (NOAA).

Other common homeowners insurance claims in Texas include:

  • Water damage – This includes damage caused by faulty plumbing and burst pipes, but does not cover damage caused by floods.

  • Hail damage from hurricanes and thunderstorms – While communities in Brazos Valley, such as College Station and Bryan, are generally safe from extreme weather conditions, they do get their occasional share of hailstorms, including one that hit the area in August, 2021.

  • Theft and burglary in the covered property

  • Fire damage – The most common fire damage claims in Texas are caused by lightning.

Homeowners insurance costs in Texas

According to Bankrate, the average insurance premium for Texas homeowners is $1,863 for a dwelling coverage of $250,000.

Texas has one of the most expensive homeowners insurance in the US, largely because severe weather disturbances like hurricanes, hailstorms, and windstorms happen more frequently here than in most parts of the country. The greater the likelihood of a home being damaged, the higher the premiums are. This gives insurance companies the means to meet potential claims pay-out.

Premiums for homeowners’ insurance depend on these factors:

  • The value of your home
  • The area where your home is located
  • Type of home
  • Type of coverage you select

What are some of the best homeowners’ insurance companies in Texas?

Bear in mind that insurance companies that have the lowest or cheapest rates are not always the best ones. Homeowners and property management companies in Texas should also consider the quality of the service, including how efficient the claims processing is.

Below is a short list of some homeowners’ insurance companies you may want to look into.

  • USAA – Established in 1922, this company is currently selling insurance to active or former members of the U.S. military and their families. They offer a variety of coverage options.

  • Allstate – Founded in 1931, it is one of the largest insurance companies in the US and offers plenty of coverage options, with numerous options on how to save on premiums.

  • Amica Mutual – With an indefatigable reputation, they’re one of the highest ranked insurance companies in the country. They offer a wide range of coverage options, including flood, auto, and home insurance.

  • Farmers Insurance – This company offers customizable insurance policy options and is a full-service insurance provider offering home, auto, business, life, and condo coverage.

Work with a Realtor with your best interest in mind

At Berkshire Hathaway HomeServices Caliber Realty, good advice on homeowners’ insurance is just one of the things we are happy to provide. Our team has over forty years of experience in residential and commercial real estate, as well as property management in College Station, Bryan, and other communities in Brazos Valley, TX. If you need expert guidance in achieving your real estate goals, call us today at 979.694.8844 or email us at sales(at)bhhscaliber(dotted)com.

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