Homeowners insurance provides you with financial protection in the event that your home is destroyed or damaged due to unforeseen or catastrophic event. In addition to your home, homeowners insurance also covers your belongings (or personal property) and can reimburse you for medical expenses and liability claims resulting from property damage and personal injury to other people caused by you or members of your family. A homeowners policy will also pay for additional living expenses (or ALE). ALE will cover your expenses if you are forced to move into a hotel or apartment temporarily because of a covered loss to your home.
Home insurance policies in Texas can vary greatly from one insurance company to another as far as what is covered. Let us help you understand the differences so you can make an informed decision.
*Office of Public Insurance Counsel Website
Rental Property Insurance
In the state of Texas , there are big differences between policies for an owner-occupied house and a tenant-occupied house. If you move and decide to keep your old house for rental income, you will need to change your insurance policy to a tenant-occupied policy. A tenant-occupied home insurance policy is called a TDP or Dwelling/Fire insurance.
The following key characteristics can vary from one company to another on a TDP policy:
- The existence and amount of water damage coverage. Most TDP policies have $0 in water coverage for losses caused by a broken pipe or appliance, etc.
- Whether falling objects are covered. The best example of this is a tree that falls on your house.
- Few TDP policies provide liability protection. However, we do have some that will.
- Replacement Cost vs. Actual Cash Value Coverage – replacement cost coverage will pay the full amount to replace your house, roof, etc (up to your policy limit). Actual cash value coverage will subtract depreciation from the replacement amount in the pay-out.
Call us and we can help walk you through the differences in coverage so you can make the best decision.
Following is a partial list of some of the home insurance companies we represent: