Finding exactly what to know about home insurance in Spring, Texas can be tricky. Especially if you’re new to the area or Texas in general.
You’ll soon find that Texans love Texas. The Lone Star State is well known for its ample job opportunities, widespread neighborhoods, and several of Texas-friendly traditions like football and Rodeo season. However, Texas is also known for its unpredictable weather and scorching summer days.
Typically, flooding, hail, heavy storms, hurricanes, and everything in between can make shopping for home insurance in Spring, Texas a complex front to navigate. So here’s a breakdown of what to know about home insurance in Spring, Texas.
Just starting your search for a real estate team in Spring, Texas? Contact The Tomczak Team, SOLID Real Estate Services today at (832) 458-8519.
6 Things You Need To Know About Home Insurance In Spring, Texas
Picture this – a storm hits and you escape most damage except for some minor flooding in one of your bedrooms. Thinking it’s an issue that can be resolved quickly, you call your home insurance agent to talk about solutions. Then, your agent informs you that flooding isn’t covered under your policy at all.
Now what?
The last thing you want to do is pay for a policy thinking you’re prepared for whatever comes next only to find out that you’re underinsured. What to know about home insurance in Spring, Texas comes down to understanding these 6 key points.
1. What Home Insurance Typically Covers
What a typical home insurance policy will or won’t cover is essential to ensuring you have comprehensive coverage. This is why it’s so important to know that home insurance policies in Texas usually include the following 6 types of coverage:
- Dwelling for covering damaged property due to a cause covered under your policy
- Personal property like clothing, furniture, etc.
- Other structures like garages, fences, etc.
- Additional living expenses if you need to live elsewhere while your home is being repaired
- Personal liability for medical bills, lost wages, damage to someone else’s property, and other legal issues
- Medical payments for those injured on your property
Of course, these are general descriptions, which means looking into the fine print of your policy is vital to understanding it completely. However, there is one question that many people are unclear about when it comes to dwelling coverage versus personal property coverage.
2. What Is The Difference Between Dwelling & Personal Property Coverage?
The easiest way to think about coverage for both is that “dwelling” refers to covering the building itself. Your policy will assist in paying for parts of your home, not including separate buildings like toolsheds, fences, or garages. Again, dwelling coverage only includes payment for damages caused by something your policy already covers.
For example, if a fire causes damage to a room in your home and you need to make flooring and wall repairs, your insurance should cover this. However, if the fire spread to your fence and shed, those items would likely not be covered.
Personal property covers the contents of your home that are susceptible to being damaged, destroyed, or stolen. This includes items like clothes, furniture, electronics, and sporting equipment.
Using a fire again as an example, your insurance may cover replacing your sofa, armchairs, table, and other personal belongings. However, if the fire did not touch or have an impact on any of your other personal belongings, there is no need for insurance to cover those items.
3. Home Insurance Does Not Cover Flooding
Yes, it’s true. In Texas (and elsewhere), you need a separate flood insurance policy to ensure optimal coverage.
What about home insurance policies that mention water damage?
Here’s where people get confused and assume that all natural disasters are covered by their home insurance policy. According to the Texas Department of Insurance (TDI), home insurance works for seepage – water that comes from within the house. This type of event is usually described as a “sudden and accidental release of water” like having a pipe burst.
That said, the TDI also says the following are not typically included in home insurance:
- Windstorms, hurricanes, and hail (Gulf Coast)
- Flooding
- Continuous water leak
- Mold removal from continuous water leak
You should expect to pay an average of about $323 per month for home insurance in Spring, Texas. Add this to about $56.50 a month for a separate flood insurance policy (this average is determined by which flood plain your home resides in).
Need help finding a home in Spring, Texas? Contact The Tomczak Team, SOLID Real Estate Services today at (832) 458-8519.
4. Owning A Dwelling Turned Into A Rental Home Requires Different Insurance
Did you know that you need a different policy if you turn your home into a rental property?
Coverage for this type of policy is called a dwelling-fire policy (DP3) for rented residential properties. This is because as the landlord or homeowner, you now need a policy to cover your rental property’s structure and personally-owned furniture or appliances.
5. Why Mortgage Lenders Require Home Insurance
You may be surprised to know that having homeowners insurance in Texas is not required by law. Even so, many people have it anyway as most mortgage lenders require it for financing.
Mortgage lenders require proof of home insurance from lendees to better protect the homeowners’ investment since it typically covers unexpected losses and damage to the property. Better protecting the actual asset (home) increases the mortgage lender’s chances of seeing that loan paid back with interest and fees for an increased return on their own investment. In some ways, it’s a win-win for both mortgage lenders and homeowners to have adequate home coverage.
6. When To Order Home Insurance
As soon as you have an accepted offer letter, you need to order home insurance for your new home. When you get to the closing table, everything is in order and processed – and you’ll have one less thing to worry about. Remember to add home, flood, and any other kind of insurance suggested by your realtor in your checklist and factor it into your budget. The sooner you have it, the sooner you will be able to move on and into your dream home.
The Tomczak Team Is In Your Corner
It’s much simpler to find out what to know about home insurance in Spring, Texas when you have a realtor team you can trust to guide you through the process. From single-family homes and townhomes to luxury properties and beyond, we’ll help you find what fits best for you and your family.
Call The Tomczak Team, SOLID Real Estate Services today at (832) 458-8519.