What Type of Coverage Do You Need for Your Home Insurance?

When you think of Texas, the images that first come to mind are the cowboys, denim shirts, spurs, and ten-gallon hats. Some people still mistake the state for deserts and large fields of ranches. However, when you go to Dallas, Houston, and Austin, you find skyscrapers that threaten to pierce the clouds and supercars zooming along its wide highways.  

With that said, even with the modern urban landscape, you still feel a lot of the southern charm here. People still look out for their neighbors, which is why Texas draws thousands each year who are looking to finally settle in the state. 

First-time property buyers should know that a home will entail some costs. First, you need to find the best homeowners insurance in Texas. There is no patent law that will penalize you for failing to secure one. However, you assume all the risks when it comes to flood, liability, or storm damage. Also, your mortgage will require you to obtain insurance for your home.

Then you also need to consider property taxes. Although the state does not collect fixed property taxes, the local governments do have the leeway to impose a levy on your home. The amount will depend on what city or county you call home. 

What Type of Home Insurance Should You Take?

According to Bankrate, the average homeowners insurance in Texas is $3,429, which is one of the highest in the country. Only four other states–Florida, Oklahoma, Arkansas, and Kansas–have higher premiums. For comparison, if you are living in California, you would only be paying a little more than $1,100 annually for your home insurance. 

So, as you can see, it is not cheap to get your home insured. It is one of the reasons why a significant number of homeowners are taking the risk that nothing will happen to their property.

Typically, you take out homeowners insurance in Texas for one of the following reasons:

1. To cover the damage to your property in case of natural or man-made disasters
2. Liability in case of an injury that occurs in your property
3. To replace missing or stolen items, particularly rare or valuable items
4. To rebuild your home, which means coverage for extended dwelling
5. To replace a house in case of total damage

The amount of insurance premium depends on the type of coverage you choose. You can expect to have your house or property evaluated to determine the estimated value. The cost of your insurance is based on that amount.

Of course, if you choose extended dwelling coverage, you are looking at top dollars. After all, it means replacing the entire house, from the foundation, posts, structure, beams, and roof. Typically, the amount excludes the furniture and appliances that are also damaged or missing in case of a hurricane or fire, for example.

Now, if you have rare items in your possession, an heirloom for example, then you should also make sure that they are insured. 

In conclusion, the amount of your home insurance will vary depending on the coverage. There are online insurance marketplaces, which makes the search easier. But you always think how much you possibly need so that you can get back on your feet immediately after a devastating event. 

Susan Paige