So, you've done it! You're a new home owner! After months of house hunting in the Lone Star State, negotiating and shopping around for the best financing, your dream of being a Texas homeowner is a reality. The papers have been signed, the closing completed and you're ready to move in when it suddenly hits you—with the joys of new home ownership comes the responsibility of acquiring Texas home insurance. In other words, how are you going to protect all this?



All the time spent planning for your new home can be wiped out literally in a few short minutes. A home represents more than just a place to provide shelter—it very likely is the largest investment most people will ever make in their lives. You want to be sure that, in the case of disaster, you, your loved ones and all of your possessions are protected. A standard homeowner's insurance policy insures your home and your possessions, and can be tailored to fit any unique circumstances regarding your situation.

At its most basic, a homeowner's insurance policy is a package policy that will reimburse you for damage to your property, as well as cover your liability or legal responsibility for any injuries and property damage caused by you, members of your household, or even your pets, to other people. In 2006, a poll conducted by the Insurance Research Council found that 96 percent of homeowners owned a homeowners insurance policy. Most banks and mortgage companies insist that a borrower obtain a good home insurance policy as part of their terms of purchase, just to be sure that both they and the borrower are prepared in the case of a worst-case scenario situation.

But, here's where the "caveat emptor" warning comes into effect: there really isn't a one-size-fits-all insurance policy out there that will cover each home equally well, and policies vary widely from state to state. Texas home insurance carries some of the highest premiums in the nation, costing an average of $1,372, compared to that of Arizona home insurance premiums at $635 and Utah at only $477. Be sure to look over the fine print of your policy and be certain that it provides adequate coverage for your particular situation.

Flood Insurance and Earthquake Insurance: Depending on the area where you live, you might investigate whether purchasing a separate policy for damages caused by flood or earthquake is a good idea. Typically, these two disasters are not included in a standard homeowner's insurance policy.

Replacement Coverage vs. Actual Cash Value: While these two sound as though they are the same thing, they are actually quite different. Replacement Coverage gives you the money needed to rebuild your home and replace its contents. An Actual Cash Value policy costs less, but only pays out for what your property is worth at the time of your loss, with deductions made for age, wear and tear.

Home Contents Insurance - Special Coverage: Depending on what's in your home, you might investigate having a special policy made to cover beloved items such as musical instruments, antiques, art or jewelry, or even your electronics, such as computers, cameras, etc.