Homeowners Insurance in Texas

(This is REAL STUFF- and you can fix it this week)

Not Knowing These Differences Cost This Austin Family $60,000!

–> Backup Sends 8,000 Gallons of Sewage Gushing Into Home <–

Make no mistake about it, whether it’s coverage, pricing, mandatory exclusions, deductible requirements, or dollar caps, homeowners insurance in Texas is different.  WAY different.

If you’re new to Texas you need to know, it’s WAY different than it is in other States (and we’re not just talking about price)

It’s also different, depending on where you live in Texas.

In other words, what’s true in Dallas, doesn’t hold True in Austin, and what’s true in Austin doesn’t hold true on the coast.  And there’s A LOT more cities and communities than that.

This may sound daunting, but trust me, you need to know this BEFORE it’s time to file a claim.

Let’s look at a few examples of how Homeowners Insurance in Texas is different across the State…

Let’s start with Dallas. In Dallas (really more like North Texas), you’re likely to find mandatory 1% or even 2% wind/hail deductibles (that’s 1-2% of the home’s insured value) with most companies, and the average price for a home insurance may be $1,700-$2,300 with a home insured value of $300,000.

In the Austin area that same policy may cost you less than $1,000, and have a wind/hail deductible of $1,000

On the coast, you may be lucky to find wind/hail coverage at all without purchasing a separate policy.

And it’s possible that you would find rates as high as $4-5k in coastal Texas.

And that’s EXCLUDING wind/hail!

The difference in what’s available for homeowners insurance INSIDE Texas is significant.

But what about how Texas homeowners insurance varies from the rest of the country?’

And, how is Texas homeowners insurance different from the rest of the country?

First, you should know we can’t address all the ways that Texas policies will vary from other states.

Much of the list is always changing, which makes it impossible to capture it all.

Today, we’re only focusing on the MAJOR differences.

The major differences revolve around water damage.

Here’s How:

—>Texas homeowners insurance has 5 different types of water damage <—

Read that again, It’s THAT IMPORTANT!!!

In most States it’s 4,  the 5^th type (continuous and repeated) is almost exclusively unique to Texas.

I’m betting you didn’t know that there were 4 much less 5 types of water damage, right?

Think about that, before you read that, (if you’re like most) you likely had no idea that homeowners insurance in Texas had that many types.

In fact, if you’re like many people, you might have a question like “Does my policy cover flood damage?”

And you would be thinking that “flood” means the type of water that damages your house.

I don’t blame you for thinking that (I did 20 years ago), but you couldn’t be more wrong.

But “flood,” has a VERY specific definition and it’s EXCLUDED.

There are other types like “sudden and accidental,” and “backup of sewers.”

I don’t drill down on them here, but when you’re ready to learn more, be sure to check out my free E-book

“3 Nasty Surprises,” below.

See the surprises here!

You might be wondering, WHY is home insurance in Texas SO different?

It boils down to what causes claims in an area.  The events that cause major claims in Texas are different than in much of the country, and the major events that cause claims in Dallas are different than what cause major claims in Austin or Houston.

Whether it’s a hurricane prone area on the coast, a region with clay soil (Dallas) vs loose dirt (South/Coastal) , or an area that gets hundreds of millions of dollars in wind/hail damage each year (North, Central, East Texas), what’s available for your homeowners insurance policy will depend on where your property is located.

Tying it all together (5 Types Below)

Unless you’re a licensed insurance professional, knowing all the differences is an impossible task, but knowing enough to know that there ARE difference and what a few of the major differences will forever help you make a better decision about your homeowners insurance in Texas.

The State of Texas even put together a website to outline them (bet you didn’t know that either…)

Check it out:

–> OPIC | Texas Home Insurance Comparison Tool <–

Or you can check out the 5 types of water damage here:

Whether it’s us or another great independent Agent, your best bet is to get help.

There are some great Agents out there, but I’d love for you to consider us.

Here’s our process:

We know your home is important…Our 3 step process is designed to reflect that.

The 3 Step Process 

1. Discovery Phase –Review your current policy, and look for ways to improve your coverage and/or reduce costs.

   1. In this phase we also gather info that is specific to your individual circumstances (your recommendations will be tailored to you)

2. Quoting Phase – We carefully search through our network of high quality, vetted insurance companies, to find you the best option.

3. Delivery Phase – You are presented with the most competitive option(s), with your tailored recommendations.

•  

From there, the next steps are up to you.  We never “hard sell” anyone.  When the time is right to move forward, we walk you through the steps of signing up, and canceling your current policy(s).

And the best part is, after you’re signed up you have an industry professional in your corner when things come up.  Whether your needs change and you need a tweak to your policy, discuss a potential claim, or have a general insurance question, we are an ongoing resource for after you sign up.

I look forward to the opportunity to work with you.

Steve White

Not knowing these differences cost Texans 10’s if not 100’s of millions in unpaid claims that could have been covered.

Have you ever thought or asked “does my policy cover flood damage?”

Thinking “flood” means any type of water that damages your house.

I don’t blame you for thinking that (I did 20 years ago), but unfortunately it’s not that simple.

“Flood,” has a VERY specific definition and it’s EXCLUDED under basic homeowners policies.

There are other types that can be covered like “continuous/repeated,” and “backup of sewers.”

But you have to know what to look for.

Don’t worry, we have a cool chart below that outlines all of them for you.

If you’re up for a challenge, be sure to check out my free E-book (this is a deeper dive).

“3 Nasty Surprises,” below.

Click to see the surprises!

A quick look at a few examples of how Homeowners Insurance in Texas is different across the State…

Let’s start with Dallas.

In Dallas (really more like North Texas), you’re likely to find mandatory 1% or even 2% wind/hail deductibles (that’s 1-2% of the home’s insured value) with most companies, and the average cost for a home insurance may be $1,700-$2,300 with a home insured value of $300,000.

In the Austin area that same policy may cost you less than $1,000, and have a wind/hail deductible of $1,000

On the coast you may be lucky finding wind/hail coverage at all without purchasing a separate policy.

And it’s possible that you would find rates as high as $4-5k in coastal Texas.

(And that’s EXCLUDING wind/hail!)

As you can see, the difference in what’s available for homeowners insurance INSIDE Texas is significant.

WHY is home insurance in Texas SO different?

It boils down to what causes claims in an area.

Whether it’s a hurricane-prone area on the coast, a region with clay soil (Dallas) vs loose dirt (South/Coastal) , or an area that gets hundreds of millions of dollars in wind/hail damage each year (North, Central, East Texas), what’s available for your homeowners insurance policy will depend on where your property is located.

Here are some tools to help you make sense of it all…

Knowing all the differences is a near impossible task (unless you’re a seasoned Agent), but you can definitely know some important basics.

Here are the tools you need to help you make a better decision when the time comes to.

The State of Texas has this cool tool

A quick look at a few examples of how Homeowners Insurance in Texas is different across the State…

Let’s start with Dallas.

In Dallas (really more like North Texas), you’re likely to find mandatory 1% or even 2% wind/hail deductibles (that’s 1-2% of the home’s insured value) with most companies, and the average cost for a home insurance may be $1,700-$2,300 with a home insured value of $300,000.

In the Austin area that same policy may cost you less than $1,000, and have a wind/hail deductible of $1,000

On the coast you may be lucky finding wind/hail coverage at all without purchasing a separate policy.

And it’s possible that you would find rates as high as $4-5k in coastal Texas.

(And that’s EXCLUDING wind/hail!)

As you can see, the difference in what’s available for homeowners insurance INSIDE Texas is significant.

WHY is home insurance in Texas SO different?

It boils down to what causes claims in an area.

Whether it’s a hurricane prone area on the coast, a region with clay soil (Dallas) vs loose dirt (South/Coastal) , or an area that gets hundreds of millions of dollars in wind/hail damage each year (North, Central, East Texas), what’s available for your homeowners insurance policy will depend on where your property is located.

Here are some tools to help you make sense of it all…

Knowing all the differences is a near impossible task (unless you’re a seasoned Agent), but you can definitely know some important basics.

Here are the tools you need to help you make a better decision when the time comes to.

The State of Texas has this cool tool

Check it out:

–> OPIC | Texas Home Insurance Comparison Tool <–

Let us help you with your first Texas Home Insurance Policy…

When it’s time to make the big move, we’d love to help you with your new Texas home and auto insurance.

Give us a try below:

Here’s our process:

The 3 Step Process 

1. Discovery Phase –Review your current policy, and look for ways to improve your coverage and/or reduce costs.

• In this phase we also gather info that is specific to your individual circumstances (your recommendations will be tailored to you)

2. Quoting Phase – We carefully search through our network of high quality, vetted insurance companies, to find you the best option.

3.  Delivery Phase – You are presented with the most competitive option(s), with your tailored recommendations.

The next steps are up to you.  We never “hard sell” anyone.

If we are able to find you a good option, we walk you through the steps of signing up, getting your lender what they need to help you close, and help you know how to cancel your current policy(s).

And the best part is, after you’re signed up you have an industry professional in your corner when things come up.  Whether you need a tweak to your policy, discuss a potential claim, or have a general insurance question, we are an ongoing resource for after you sign up.

Looking forward to hearing from you,

Have a question?

You can email me directly steve@stevewhiteinsurance.com

This Austin Family Was Out Of Pocket $60,000

–> Backup Sends 8,000 Gallons of Sewage Gushing Into Home <–

This North Texas Homeowner Found Out The Hard Way

–> Leaking Pipe Damages 90% Of Flooring in North Texas Home <–

The Problem Has Always Been…

The problem with buying and comparing Texas homeowner’s insurance policies has always been the lack of transparency, confusing language, and fluff coverage talk that never gets to the REAL stuff.

Take a pause and think about this question.

How do you REALLY KNOW what you’ve purchased?

Unless you’re licensed, you’ve never been trained on policy differences, so the answer is… you don’t.

Let’s change that now.

Before We Go Any Farther (just one ground rule)…

Before we go any farther (and just until we finish), you must turn off the side of your brain that immediately goes to price.

That’s right, (just for now) tell yourself, PRICE IS NOT IMPORTANT.

We can bring price back to the table later…

For Now, We’re Just Talking Coverage… Here’s Why

Because for you to make a decision based on REAL knowledge, you have to understand:

1. There ARE REAL DIFFERENCES in Texas Homeowners Insurance Policy’s.

2. You can work to improve and have an EXCELLENT policy

3. Thinking about price during any of this will cloud your ability to see the differences

Which is why I say, just for now, this is not about price, it’s about coverage.

What Makes These the Top 2 Texas Homeowners Insurance Policy’s?

These are the top 2 Texas homeowners insurance policy’s because they have the broadest (and most favorable) language for you, the consumer.

But, here’s what that REALLY means.

The Top 2 Texas Homeowners Insurance Policies have the best water damage either already built in, or available to add on by “endorsement”.

(Pro Tip: an endorsement is add-on language- most of the time helpful to you, but NOT ALWAYS)

In Texas, insurance companies have 5 TYPES of water damage coverage.

You can’t just have “water damage coverage” and expect that all damage caused by water will be covered.

For more on water damage

be sure to check out 3 Nasty Surprises below:

“You have no legs to stand on if your policy doesn’t have the right language. If you have favorable language, and they try to deny coverage, you have a fighting chance”

And, Why Is Water Damage So Important?

Because, outside of wind & hail claims, the most common claims that are likely to occur are going to be from water damage.

Water damage can be very expensive to clean up.

I can’t stress this enough.

You have no legs to stand on if your policy doesn’t have the right language.

If you have favorable language in the policy and they try to deny coverage, you have a fighting chance.

As you can see, it’s crucial for you to know what type of policy you have and how it addresses damage from water.

And although it’s important for you to know if wind/hail is included in your policy, it’s VERY rare for companies to exclude wind/hail unless you are reading this in one of our Coastal regions.

Now, before we reveal the Top 2 Texas Homeowners Insurance Policy’s, one last important note.

One Last Note Before The Reveal

These Top 2 are chosen because they are common policy types, they are filed with the State, and are available through multiple insurance companies.

There are a small handful of unique policy’s, written by only one company, that could possibly compete with these 2.

These are the top 2 policy’s that are widely available to many Texas consumers.

And, per OPIC, these are the two with the most favorable water coverage.

Be sure to check out their cool policy comparison tool here:

–> OPIC | Texas Policy Comparison Tool <–

Or

(Our Version)

Texas Homeowners Insurance Comparison Tool

The Top 2 Revealed

 The Top 2 Texas homeowners insurance policies (that most consumers can have access to), are called HO-C, and HO-5.

The HO-C is a policy that is specific to Texas.  And although not as widely used as an HO-5, it is still available through a handful of companies.

This policy, in its base form (no endorsements), is VERY broad. If you have an HO-C now, you have an EXCELLENT policy.

The HO-C’s little brother (although not that much littler), is the HO-B. An HO-B is an excellent policy too, make no mistake.

But even with the HO-C, you must still look to be sure the HO-C has things like ordinance or law, or loss assessment coverage, but as a base policy, the HO-C is a top of the line policy.

The HO-5 is excellent too, and more flexible.

In its base form (no endorsements), it may not be as broad as the HO-C. But often, can be built up to be as good or even better than an HO-C.

For example, you may have to add sewer back-up coverage (city sewer line backs up in your house- like above).

And then you may have multiple limits options for that or other water damage coverage’s (maybe 50k-250k).

NOW… Let’s Talk Price

Okay, at this point, hopefully your mind is starting to question what you have and what to look for.

That’s a GREAT thing.

You’re on your way to making a better decision.  But what about price?

You may be thinking these polices are the most expensive in the marketplace.

For many people, that is DEFINITELY NOT THE CASE.

Here’s more on how your rates are determined.

11 Factors That Affect Texas Insurance Rates

There are many times where these policies can be less expensive than what you’re currently paying.

That’s Right…MORE COVERAGE, LESS MONEY (no kidding).

So, What Can You do Now That You Have Better Information?

The best thing you can do today, is to know WHAT to look for on your own policy & compare to the market.

Here’s 3 actionable steps to do that

1. 1. Get a copy of your “declarations pages,” they are usually the first few pages of your policy and are often available online.
      • Samples below
   2. Compare that to what’s available in the market, using our tool above or the OPIC tool above
   3. If you need help understanding this, email me directly below.

“The best thing you can do today, is to know WHAT to look for on your own policy & compare to the market.”

Sample Home Declarations Pages Below:

(Pay close attention to the Forms and Endorsements and Additional Coverage sections- Starting on Pg 2.)

Once You Have Those

Next, look up your policy on OPIC’s site using the policy comparison tool above.

If the coverage’s aren’t to your liking, or if you need help weeding through it, let me know.

Shoot me an email below, or get started with a quote.

steve@stevewhiteinsurance.com

Look forward to hearing from you!

Grab Your Policy Declarations Pages & Get Started Now