A Deeper Look Into Texas Homeowners Insurance

The amount of money that you’ll pay for homeowners insurance in Texas is more than almost every other state in the nation. A major cause for the high insurance premiums in Texas is tornadoes.

Before making the decision to move there, a lot of people don’t even realize that Texas is part of Tornado Alley, which is a long stretch of land that is known for frequent twisters.

Some other reasons why you’ll find the cost of homeowners insurance in Texas to be high is because of the hailstorms and strong winds. Since 2004, about 139 twisters touch down in Texas every single year. Put simply, a twister touches down in Texas almost every other day.

Some Interesting Facts about Twisters

If you live in the area and pay for homeowners insurance in Texas, you should know some simple facts about twisters. First, a tornado can occur anywhere and at any time.

There is no season that is considered to be totally safe from twisters. Most twisters occur east of the Rocky Mountains, and they’re most likely to form between the months of March through August.

Higher Premiums in Texas

The lone star state is known for everything big. In Texas, you’ll quickly realize that the food, cars, firearms and insurance premiums are bigger. While most of the nation pays an average of $850, the typical cost of homeowners insurance in Texas is $1,115.

Hurricane exposure, strong winds, tornadoes and floods are the major reasons why homeowners insurance in Texas is more expensive than the national average. The average premium is much more expensive than states like Oregon and Utah.

Many Texans can’t remember a time when they had lower premiums than the rest of the nation. If you already have homeowners insurance in Texas, or you’re thinking about buying a policy, it’s always a good idea to compare rates from different companies. When you compare rates, you get in a position to save some money.

Although the cost of homeowners insurance in Texas is high, the market is still quite competitive, so you shouldn’t have too much trouble getting a competitive rate. You’ll probably still be paying more money than the rest of the nation, but you might pay less money than other Texans.

Understanding Homeowners Insurance in Texas

Before you purchase a policy, you should understand how the process works. Since your home is a major asset, it’s important to make sure you purchase enough coverage for it. You should know exactly what your home is worth and make sure you’re paying for just enough coverage.

To save money, you need to make sure you’re not paying for more coverage than your home needs. For example, you shouldn’t purchase a $500,000 policy for a $200,000 home. It’s best to pay for exactly how much your home is worth.

Before you sign on the dotted line for homeowners insurance in Texas, it’s also important to make sure you truly understand the limits and coverage.

Every policy has limits and restrictions, so it’s your job to read the fine print and make sure your insurance company isn’t pulling a blindfold over your eyes. Insurance companies make more money when you overpay for homeowners insurance in Texas, and they also make money by paying you less money than you deserve for a claim.

Damages Covered By Most Policies

It’s useful to know what a standard policy is likely to cover. A typical homeowner’s insurance policy in Texas should cover damage caused by theft, civil unrest, explosion, vandalism, fire, lighting, hurricanes and windstorms.

Unfortunately, most basic policies won’t cover damage caused by flooding, sinkholes, earthquakes or mold, so you need to make sure your coverage doesn’t have any gaps. This is a great overview of homeowners insurance in Texas, and with this information, you can make an informed decision.