Homeowner’s Insurance is essential to the financial stability of a home owner. When “hazards” such as losses or damage occur, insurance pays to restore your home to its original condition. While a first-time home buyer course is recommended to explain insurance terminology in plain language, it is possible to use smart online resources to gain a stronger understanding of how home owner’s insurance works. This knowledge can potentially put more money in your pocket: insurance-savvy homeowners know how to get the most from their insurance claims, resulting in higher payouts.
The Texas Department of Insurance (TDI) offers a helpful guide to homeowner’s insurance for consumers. The break down the six types of coverage that most homeowner’s policies contain:
Dwelling coverage if your home is damaged by something covered by your policy.
Personal property coverage if covered personal property at your home must be replaced.
Other structures coverage if structures like sheds or garages are damaged.
Loss of use coverage if you have to pay for lodging and other expenses to live elsewhere until your home can be used again.
Personal liability coverage if you are held responsible for someone else’s losses, either on your property or theirs.
Medical payments coverage if medical bills must be paid because of injuries on your property, and sometimes elsewhere under certain conditions.
It’s important to know what your policy covers and what it excludes, as this can make a key difference in the event of a claim. The State of Texas Office of Public Insurance Counsel offers a handy Homeowner’s Policy Comparison Tool that can guide shoppers through an apples-for-apples comparison of plans and premiums.
For example, most homeowner’s policies cover damages caused by:
However, most policies do not cover damages caused by:
Damage from pests
Wear and tear
Trees or shrubs damaged by weather
Looking for an insurance provider? The TDI provides a stack-ranked list of the Top 40 Homeowners Insurers as well; this can be helpful information to see the names of the most popular companies when making your own comparisons.
Looking for more information on what to do in the event of a claim? The TDI provides a helpful FAQ site to help homeowners understand what their rights and responsibilities are in the unfortunate event of loss or damage to insured property.