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Home Insurance Dallas - Facts About Home Insurance for Dallas, TX

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When researching home insurance, Dallas property owners should compare prices and research insurance companies thoroughly to find the best value. Shopping for insurance is similar to shopping for any major purchase. The cheapest is not always offer the best deal; neither does the most expensive policy necessarily the best coverage. Here are some things Dallas home owners should consider when researching home insurance.

Home insurance in Dallas should be purchased through an insurance company or agent licensed to do transact insurance in Texas whenever possible. Researching insurance company reputations and complaints is a crucial step in the process of buying home insurance. Dallas property owners can find information on all insurance companies and agents easily by visiting the Texas Department of Insurance website: www.tdi.state.tx.us or by calling the TDI helpline: 1-800-252-3439.

What Types of Home Insurance Policies are Available in Dallas?

HO-A covers homes and contents for actual cash value only, an extremely limited coverage. Furthermore, the policy is a “Named Perils” policy which only protects the property for specific types of losses as defined in the policy.

HO-A Amended offers broader coverage than the HO-A as it is possible to add replacement cost coverage to the building as well as coverage for sudden accidental water damage protection for the building.

HO-B provides “all risk” coverage for the building and “named perils” coverage for the contents. HO-B policies are generally considered the best home insurance value for Dallas homeowners. The amount of coverage for contents is automatically set at 10% of the building limit. It is possible to increase the limit for contents for an additional premium, if necessary.

HO-C provides all risk insurance for the building and the contents with replacement cost valuation. Though this coverage form is the most comprehensive, finding home insurance in Dallas on this form is difficult to find and quite expensive.

Approved alternative policies are unique policies developed by individual insurers and approved by the Texas Department in Insurance. Often, coverage under such policies can be quite broad, other times, coverage is limited. When considering an approved alternative policy, homeowners should consider the limitations and coverage enhancements offered by such a policy.

What is the Texas Consumer Bill of Rights for Insurance?

Home Insurance policies in Texas must include a Consumer Bill of Rights. The Consumer Bill of Rights explains homeowners’ legal rights under the policy. Just a few of the rights established in the Consumer Bill of Rights are:

Lender Required Insurance: A lender which requires insurance to be carried on a property can not require that the property be insured for an amount higher than the replacement cost of the structure. This can be a factor for home insurance. Dallas homes are often priced significantly higher than the replacement cost of the building due to market and land values.

Credit Information: An insurance company cannot deny coverage to a home owner strictly on information obtained from a credit report.

Prior Water Damage or Mold Claims: Home insurance cannot be denied solely on the basis of a prior mold or water damage claim so long as the damage was repaired, inspected, and certified.

Special note on mold claims for Dallas home insurance: Insurance companies who write home insurance in Texas are required to offer mold remediation insurance to policyholders. The limit can be expressed in a dollar amount or as a percentage of the total policy limit.

Windstorm Coverage: Certain properties in high risk areas as designated by the Texas Insurance Commissioner can obtain wind and hail insurance from the Texas Windstorm Insurance Association. For all other locations, windstorm coverage must be included in home insurance. Dallas homeowners, being far inland, do not have the difficulty in obtaining insurance for wind damage as do coastal properties in Texas.

What Factors Impact Dallas Home Insurance Premiums?

Insurance companies use a number of factors in determining the premiums for homeowners’ policies. Some of the common factors are:

The age of the home
The construction of the home and the quality of building materials used
Location of the home, the city, the neighborhood or the community
The response time and rating of the local fire department
Prior claim history of the home and of the homeowner
Credit history of the insurance applicant

It is important that insurance applications be completed accurately and honestly. The insurance company will complete a process of underwriting research which will reveal prior claims and credit problems. If an insurance underwriter has reason not to trust the applicant, the underwriter may refuse to offer a quote. If an insurance company turns down an application for home insurance, keep shopping. Finding the right policy can be a lengthy process. Check online for policy quotes, contact several agents, and inquire directly with insurance companies to fully explore all the options available for home insurance in Dallas.

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