What Does Homeowner’s Insurance Cover? Is it Required in Texas?

Unlike mortgage insurance, your homeowner’s coverage protects you. And although Texas is a great place to live and work, we deal with serious inclement weather sometimes. In this article, we’ll outline:

  1. What’s covered with homeowner’s insurance
  2. When it’s required
  3. How much it costs & what determines pricing

RELATED: What’s mortgage insurance? Do I have to have it?

What’s the TRUE cost of owning a home (including homeowner’s insurance)?

What does homeowner’s insurance cover?

A typical homeowner’s insurance policy will pay to repair or rebuild in the case of natural disasters including:

  • Fire (including wildfires)
  • Hurricanes
  • Hail
  • High winds, lightning, and tornadoes

Usually, homeowner’s insurance covers more than inclement weather. These items will probably be covered as well:

  • Your personal belongings
  • Garage and tool shed
  • Liability for neighbors
  • Living away from home when your home is damaged from an insured disaster

So if one of your family’s pets damages your neighbors fence, your homeowner’s insurance covers the repairs.

What does homeowner’s insurance NOT cover?

You’re protected from a lot of disaster with homeowner’s insurance, but it almost never covers floods. Flood insurance is sold as its own policy.

Flood insurance is required for those living in a “flood zone”. It’s often required for those living in areas of Texas near lakes, rivers, and the coast.

More than half of homes flooded by Hurricane Harvey were outside of designated flood zones. – Texas Department of Insurance

Is homeowner’s insurance required?

If you’re getting a loan for your home, homeowner’s insurance is required. When your house is paid off, you’re no longer required to have it.

If you’re currently renting, don’t let this scare you off. The true cost of owning a home may be well within reason for you.

How much does homeowner’s insurance cost?

Like your auto insurance, homeowner’s insurance depends on many factors. But if you’re getting a loan for $150,000 in Texas, you may expect to pay around $100 a month. In Texas, where hail, tornadoes, and fire wreak havoc nearly every year, that’s a small price to pay.

Get a lower homeowner’s insurance premium

Now for the fun part – discounts! These are five common ways your homeowner’s insurance premiums can be lowered:

  1. You’re a veteran or active service member
  2. You’ve completed post-graduate education
  3. Your house is located near a fire station or hydrant
  4. Your home was built relatively recently
  5. You live in a smaller-sized house
Get answers from the lender Texans trust

Whether you’re just exploring the idea of buying a home or you’re in a hurry to purchase, we’re here to answer all your questions. Every month, 200+ families trust The Wood Group of Fairway to provide the best mortgage experience anywhere in Texas.

Get started with our easy questionnaire to find which options you qualify for! No strings attached.

Which home loans do you qualify for?
Begin with our 90-second questionnaire!

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