Texas Homeowners Insurance | Policy Comparison (Updated for 2020)

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Texas Home Insurance | Policy Comparison Chart


Texas Home Insurance Comparison
Texas Home Insurance Comparison Chart (click to download)


Here’s what most Texas consumers get wrong about their home insurance…


If you’ve ever said something like, “can I get an apples to apples quote,” or “I’d like a quote with the same coverages,” this is for you.
Where most consumers go wrong is, they believe that home insurance policies in Texas are basically the same.
So, let’s settle this once and for all…
(That’s not me yelling, just emphasizing for importance)
Now that you know that, you should also know you can understand the key differences (without getting an insurance license).

The chart above is designed to help you begin to wrap your head around these differences so you make a better decision.


How to Read the Chart

Step 1- Find out what type of policy you have now

Grab your current home declarations pages (first few pages of your policy).
Look around, sometimes on the bottom left, or maybe at the top, but look around, it’s almost always there.
Look for terms like HOA, HOB, HO3, or HO5.  (If you need help, visit the OPIC link at bottom)
Once you find that… on to step 2.

Step 2- Compare what you have to the top 5 Chart.

The  comparison chart is broken down into 2 sections

(1)Policy Type- Across

(2)Coverage Type- Down

1.  The chart then compares 5 of the most commonly written polcies, on top row
2.  And then most significant coverage types are on the left column
3.  Whether or not something is covered or can be is color coded (key below)

               Green dots mean coverage is very likley built into this policy (the more green dots the better for you).

         Yellow dots mean you have to look closer on your policy. You should ask your agent if they can offer the coverage. (If coverage is available, also ask what are the dollar limits)

           Red Dots mean there’s a VERY good chance that coverage is excluded on that policy.  You can ask, but most likley coverage will not be available.



Why is this Important for You?


Now, you can finally understand what is in your policy, and not only that, how it compares to others in the market.
This should be GAME CHANGING for you.
If you’ve made it this far, congratulations, you are one of the few, that can now make a TRULY INFORMED DECISION about your insurance.
You can see that Texas homeowners insurance policies are NOT all the same.



What’s The REAL Difference in Texas Home Insurance Policies?


To break this down to the nuts and bolts, the REAL difference (in most cases) boils down to water damage.
Now, that’s not to say there aren’t any other areas in your policy that are important.
In fact, outside of weather, water damage, is by far the next most likely way you will have damage to your house.
Below is a breakdown of the most common claims ccording to the Insurance Information Institute.


The Most Commmon Homeowners Claims*

      • About 1 in 20 insured homes has a claim each year.
      • About 1 in 50 insured homes has a property damage claim related to wind or hail each year.
      • –>About 1 in 50 insured homes has a property damage claim caused by water damage or freezing each year. <—
      • About 1 in 325 insured homes has a property damage claim due to theft each year.
      • About 1 in 360 insured homes has a property damage claim related to fire and lightning.
      • About 1 in 900 homeowners policies has a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others.

*Insurance Information Institute calculations, based on ISO®, a Verisk Analytics® business, data for homeowners insurance claims from 2013-2017 (for full details see link here).


Since We’re Talking about Water Damage in Texas homeowner Insurance Policy’s…



Texas policies can offer 5 different types of water damage coverage, this is unique to Texas.


Here’s two BIG types:

    1. Sudden & Accidental (EX: frozen pipe breaks and you find it in the morning)
    2. Continuous & Repeated (EX: slow supply line leak to dishwasher leaking for months undetected)



leaking pipe ceiling water damage
                       ID 47111169 © Stocksolutions | Dreamstime.com                    Peeling paint on an interior ceiling a result of water damage caused by a leaking pipe dripping down from upstairs. A common house insurance claim.


There are plenty of policies available that offer coverage for both types of water damage including slow leaking pipes that you don’t find right away.


Aren’t Policies with Better Coverage More Expensive?


You would think that the policy that offers both is automatically more expensive, right?
The policies that offer better coverage are many times less expensive.
Yes, seriously. You read that right, many times policies with better coverage are less.


How is it Possible that a Policy with Less Coverage, Costs More ?


It’s possible because pricing in today’s market is based on A LOT of factors.

For example, your rates are determined, in part, by:

Your insurance score (tied to your credit score), the location of the property, age, size, construction type, build out of your property, and claims history of the property and/or owner.

Ever wonder why rates can vary so wildly?

Be sure to check out:  11 Factors That Affect Rates


In fact, there are many times that an insurance company with a policy with less coverage, is MORE expensive.

Strictly because the combination of these factors does not match their target market.
If you have never heard that, you aren’t alone.
Your understanding of this though, is your key to making better decisions on your home & auto insurance.
And what better time to continue with your Texas homeowners insurance comparison than now?
Let our team of experts help you weed through the maze of options.


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Want  REAL Help With Your Policies?

      Grab Your Policy Declarations Pages & Get Started Below

For more detailed policy comparisons, be sure to visit: Texas Office of Public Insurance Counsel