If you’re in the process of buying a home or just starting your search, it’s never too early to start researching an important aspect of owning a home: insurance. Your lender will likely require homeowners insurance if you’re financing the purchase, and even if it’s not required, insurance can help mitigate some of the risks and costs that come with owning a home.
According to the Texas Department of Insurance (TDI), homeowners insurance policies typically cover damages from:
- Fire and lightning
- Sudden and accidental release of water or smoke
- Explosion
- Theft
- Vandalism, malicious mischief, riot, and civil commotion
- Aircraft and vehicles
- Windstorm, hurricane, and hail (but not on the Gulf Coast).
However, policies often don’t cover damages from:
- Flooding
- A continuous water leak
- Termines, insects, rats, or mice
- Losses that occur if your home as been vacant for a specified number of days
- Wear and tear
- Earthquakes or earth movement
- Wind or hail to trees and shrubs.
To help you research what carrier or policy options will be best for you, the TDI has a number of resources, including information about discounts, what insurance credit scoring is and which carriers use it, sample rates, and more. You can also download a checklist from the TDI to help with your homeowners insurance research process.
Also while researching insurance, have an insurance agent look over the C.L.U.E. (comprehensive loss underwriting exchange) report to see if there have been any undisclosed claims on the home.
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