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Texas the heart of cowboy country insists on home insurance as a shield that protects consumers from financial losses caused by storms, fire, theft, and other events common in the mid west.

Information not a substitute for a policy in Texas

Types of Homeowners Policies

Texas offers you many options: A simple dwelling policy that covers only the structure of your house is often the choice many people endorse. Most Texans who own their homes, buy a homeowners policy, which pools together 5 different types of coverage:

1. Dwelling - pays for all disaster related damage to your house and any outbuildings, such as detached garages and storage sheds.
2. Personal property – includes coverage for items used at home, such as furniture, apparel and gadgets, are damaged, stolen, or destroyed.
3. Liability – covers one against financial loss if the insured is legally responsible for injury to another person or for property damage. Texas homeowner’s policy automatically offers $25,000 in coverage. You can buy up to $1 million in coverage for an extra premium.
4. Medical payments - Reimburses medical bills for people hurt when on your property. It also pays for some injuries that happen away from your home, for instance if your dog bites a third person. A basic homeowners policy pays $500 in medical bills. Pay an additional amount to avail of the medical payments coverage up to $5,000.
5. Loss of use - pays living expenses if your home is too damaged to live in during repairs.

Following is a brief description of the types of policies sold in Texas:

1. HO-A policies provide extremely limited actual cash value coverage of your home and its contents. Damages incurred because of the named perils listed in the policy are covered. The HO-A is a standardized Texas policy.
2. HO-A amended policies offer more extensive coverage than the base HO-A policy but less coverage compared to an HO-B. HO-A amended policies are not standardized and their covers may differ by company.
3. HO-B policies provide replacement cost coverage for most types of damage, except those specifically excluded in the policy. The HO-B is a standardized Texas policy.
4. HO-C policies provide the maximum in terms of extensive coverage, but they are more expensive than other types of policies. This is also a standardized Texas Homeowners Policy.
5. Approved alternative policies offer varying levels of coverage. Companies can sell alternative policies only if the policy form is approved in advance by the Commissioner of Insurance. Cover in this case may differ considerably from one company to another and from the cover provided in the standardized Texas homeowner’s policies.

Note that some companies do not offer the HO-B policy though it is most popular.

Are these policies different from the rest of USA?

Insurance companies sell different types of policies in Texas, with a different level of coverage.

Three of the policy forms available for sale in Texas - the HO-A, HO-B, and HO-C - are standardized / basic homeowners policies. This means the policy language and coverages provided by these policies are the same as anywhere else in the country, regardless of the company writing the policy./p>

Note that though these policies written by one company will be exactly the same as the policies written by another company, the two companies may charge different rates.

Companies are also known to offer alternative policy forms, if they are approved in advance by the Commissioner of Insurance. These policies are not standard ones and usually provide varying coverage. Some companies may sell more than one policy form. In general, however, a company will offer only one form to its customers. If a company offers you a policy with inadequate cover, ask for other policy forms, which are available so that you can add additional coverage by buying endorsements to your base policy.

Other Residential Policies

1. Renters: This will cover your personal property since the landlord’s insurance does not do so. All your belongings are protected under this and this policy also offers liability protection, and pays additional or extra living expenses if a fire or other disaster forces you to move temporarily from your rented home.
2. Condominiums: Condominium insurance extends benefits similar to the renters insurance, and also covers damage to improvements, additions, and alterations to the condominium unit.
3. Townhouses: Townhouses may be insured by either an individual homeowners policy or an association master policy. If a townhouse is totally occupied by owners and the townhouse association does not have a master policy on the building, you can purchase a homeowners policy on your individual unit. This is similar to the Condominium insurance. If the association has a master policy, you should get a Texas tenant homeowners policy to insure your personal property.
4. Mobile homes: Mobile homes but bereft of wheels and stationed on a block or rooted permanently can also qualify for a home insurance policy. However, there is a separate mobile owners policy, which insures most of these homes. A mobile owners policy is actually an auto policy that covers mobile homes used as residences. Mobile owners policies offer extremely limited coverage.
5. Farm and ranch owners: Farm and ranch owners policies insure homes on the suburbs or outside city limits which are built on land used for farming and raising livestock. You can pay extra and get coverage for certain farm equipment and outbuildings as well.