Texas has a special homeowners insurance Bill of Rights to protect consumers. It requires companies to give you a copy of your rights which are not part of your insurance policy. It does not cover all your rights or your responsibilities. Your responsibilities will be included in your insurance policy.
As one of the largest states with a diverse geography and radically different weather from one end to the other, insurance rates can vary widely depending on location. Risk factors, number of claims in an area, building materials costs and construction costs are some of the factors that can influence the rates you will pay. Texas does not use the single primary form used by other states as it must address so many different issues than other parts of the country.
Texas law governs the rates that can be charged by insurance companies and this is overseen by the Texas Department of Insurance. The goal is to keep insurance companies competitive and promote the availability of insurance with fair rates for the consumer. However due to the extreme weather conditions throughout the state, the rates have been historically higher than other states.
Your needs for house insurance in Texas, may vary as well, depending on whether you are in the gulf coast subject to hurricanes, or in a piney forest region that may be subject to forest fires. Some hazards such as hurricanes may require separate insurance if you live in the gulf coast or tornadoes if you are in the central area of the state.
The two main types of insurance sold in Texas are “all risk policies” that cover everything unless specifically excluded, or “named perils policies” that only cover specifically named causes of loss. Each has advantages and disadvantages and should be studied carefully depending on your needs.
Large numbers of claims for mold and water damage have been major reasons for Texas insurers to change the language and coverage in their policies. An insurance company cannot deny house insurance in Texas if any water or mold damage has been repaired or re mediated as well as inspected and certified as cleared. However repeated claims of there or more in three years for water damage caused by linking appliances can be cause for question.
In some areas near the coast you have the right to buy windstorm and hail protection from the Texas Windstorm Insurance Association. You will need to check to make sure your property meets the requirements.
You have the right to ask for an independent inspection by a person authorized by the Commissioner of Insurance office in the event you are refused insurance by a company.
As a consumer you should shop for your insurance with the same degree of concern you would invest in any important or large investment. Your house insurance protects one of the largest investments you will probably make in your lifetime. Be sure you are getting the coverage you need as well as rates that are in line with your policy.
