Homeowners insurance offers protection from financial losses caused due to damage to an insured housing property. A usual policy covers the housing property for damages caused by storms, fire, theft, and other events outlined in the policy. It is imperative that you understand your policy document and have a clear idea about your rights.
Many people wait till the time they have an actual claim to review or understand their homeowner's insurance policy and rights. As a very general tip, ensure you have enough coverage to avoid a major financial loss if your home is severely damaged or destroyed. This means keeping a realistic dollar amount of coverage on your house.
Texas has a Consumer Bill of Rights for homeowners and renters insurance. Your insurance company must send the Bill of Rights with your policy or renewal. Focusing on the homeowner's insurance sector in Texas, companies offer various types of policies, each with a different type of coverage. The three of the policy types available in Texas are the HO-A, HO-B, and HO-C.
These policies are standardized products, which means the policy terms and coverage provided by these policies are identical, irrespective of the company writing the policy. Although an HO-B policy written by one company will be exactly the same as an HO-B policy written by another company, the two companies might as well charge different rates.
There is also scope for companies to offer alternative policy forms - that is if prior approval of the Commissioner of Insurance is obtained. The highlight of such policies is that they are not standardized and usually offer different and varying coverage. So in such cases, it is vital to read the policy documents in detail to understand the level of coverage and related clauses.
There might be companies that offer more than one policy form. But usually, a company would offer just one policy form to its customers. Further, there are ways to add additional coverage by buying endorsements to the base policy. Read More: Texas Homeowners Policies
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