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Texas Home Insurance Policies are Not Created Equally

Homeowners Insurance

The other day, I spoke with a mortgage broker regarding getting his business and working with his clients.  I explained the normal sales pitch.  You know, my agency has great service, great Texas home insurance policies, great rates, and free online quotes.  You’ve heard it before.  He told me that was okay, but he only cared about the great rates.

Face it, Texas home insurance has increased over the past few years.  In a recent article published in the Dallas Morning News states that the following:

The National Association of Insurance Commissioners released Monday showed that the average annual premium in Texas for the most common homeowner policy was $1,409 a year, considerably more than the nationwide average of $804.

Even though the most common Texas homeowner policy can be rather expensive, there are some things that consumers can do to lower their costs without compromising their insurance coverage.  For the mortgage broker that wanted me to simply save his people money without regard for the type of policy I write I say to you, fooey! I will not compromise my client protection for the sake of a quick sale.

When you shop for home insurance in Texas here are a few tips to look for when you look at different insurance policies:

  1. Fire the Fire Policy – A Fire policy or a DP policy is an insurance policy that covers the dwelling or house only.  Typically, insurance agents have to add liability to the policy manually by endorsement only.  The primary use of this policy is for landlords that do not want contents coverage because they figure their tenants are going to get their own renter insurance policies.
  2. Home Owners Policies are for Home Owners – Home owners policies come in several forms.  The common thread for Texas home policies and other home policies is that they typically have dwelling coverage for the home, other structures coverage for out buildings, contents coverage for your personal contents, medical payments, and personal liability.
  3. Letters are for Texas Home Insurance Policies – Typically, Texas Home Insurance policies come in the forms HO-A, HO-A+, HO-B, HO-T, and HO-C.  There are other home policies out there, but until recently these were the most commonly written policies.
  4. Numbers are for National Policies –Companies are now offering national forms that offer even more flexibility than before.  Texas insurance companies like The Hartford, and Travelers, have begun writing HO-2, HO-3, HO-4, HO-5, and HO-6 policies.  The policy languages are similar Texas Home Insurance policies, but the coverage reflects companies outside Texas are writing.

With all that said, companies like State Farm, Allstate, and Nationwide have their own policies that do not fit into either category.  If you are insured with either of those companies, you can always compare those policies online at opic.state.tx.us.  Otherwise, always talk to an insurance agent that knows what is going on and can give you an honest policy review.  As a Texas independent insurance agent, it is my job to make sure that my customer has the right coverage, at the right price.  Independent insurance agents have a number of different companies available that Texas homes policies and National policies that will protect you according to your individual needs.  If you cannot find a good agent to compare your home policy online, then you came to the right place.  Call me at 214-717-4326.

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About David Berry

David Berry is a Texas Independent Insurance Agent that specializes in finding ways to save his clients money on their auto, home, life, and business insurance. His extensive experience stems from over 15 years in the insurance, finance, and real estate industries. David has held management, sales, and marketing positions with companies including Hilton Reservations, GEICO, Liberty Mutual, and Allstate. To schedule a free insurance consultation, call TXINSURANCEPRO.COM at 214-717-4326.
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