(800) 253-1482Texas Dwelling Coverage
Summary: Your home’s dwelling coverage protects the structure of your home and structures that are attached to your home, such as a garage. You’ll need to have enough coverage to rebuild your home after a complete loss and should update your protection as costs will increase in the future. Estimated Read Time: 5 mins
Table of Contents:
- What Is Dwelling Coverage in Texas?
- How Much Dwelling Coverage Do Texas Homeowners Need?
- Coverage A - Dwelling: What Isn’t Covered
- Pros and Cons of Extended Dwelling Coverage
- Types of Dwelling Insurance
- How Much Should Dwelling Coverage Be for a Home in Texas?
Protecting your home’s structure is at the core of your home insurance policy. Consisting of many different coverages, your dwelling coverage, also known as Coverage A, is the bulk of your policy. There to protect you from losses big and small, Texans can rely on dwelling insurance to protect from perils. Learn how Coverage A - Dwelling Coverage works, what you aren’t covered from, and the best ways to protect your home below.
What Is Dwelling Coverage in Texas?
Dwelling coverage is the largest portion of a Texas home insurance policy. Coverage A protects your home’s physical structure, which includes its walls, foundation, roof, floors, doors, windows, etc. from perils. Additionally, it also protects structures that are attached to your home, such as your garage. Homeowners will need to have enough coverage to rebuild their homes after a total loss.
Dwelling Insurance vs Homeowners Insurance
Dwelling insurance is a part of home insurance and encompasses a wider scope of coverage for structures. Each homeowners policy is going to have multiple coverages and Coverage A is the portion protecting the actual structure of your home. However, some types of dwelling coverage may refer to renters, landlord, or condo policies.
How Much Dwelling Coverage Do Texas Homeowners Need?
You need enough dwelling coverage to rebuild your home after a total loss. This is often confused with the purchase price or home value of your home, but they are actually different figures. For example:
- If you purchase your home for $250,000 and it’s now worth $300,000, but it would cost $325,000 to rebuild, you would have too little coverage to do so.
- On the other hand, if you insure your home for the cost of reconstructing it, the $325,000 figure, you can avoid paying out of pocket.
It’s important to factor in inflation, the cost of materials and labor needed for your home, and more. Not only for today but into the future. Working with a licensed insurance agent can help you better understand your coverage needs. However, this is an ongoing process.
Your Coverage A policy limits may be enough for your current situation but this can change in the future. Be sure to review your policy at least once per year to maintain an appropriate level of coverage for your home.
Coverage A - Dwelling: What Isn’t Covered
Dwelling insurance isn’t a blanket coverage and there are many perils that your policy won’t protect you against. Some of the more common perils Coverage A excludes include:
- Floods
- Earthquakes
- Sewer backups
- Maintenance-related damage (wear and tear)
- Pests and infestations
- Utility lines
You can consider additional coverage or separate policies, like water backup and flood insurance, to address these exclusions, but a standard home insurance policy won’t help you restore such losses.
Things can be complex for condos and townhomes as well. This is because homeowners and condo insurance differ in dwelling and building protection. While your condo association's policy may cover certain building aspects, you'll still need specific coverage for floods and earthquakes.
Finally, your land isn’t covered by dwelling coverage. However, it’s important to note that this is separate from your home’s foundation. There are many cases Coverage A still protects your foundation and possibly your driveway but additional damage to your land isn’t protected.
Pros and Cons of Extended Dwelling Coverage
Home insurance policies have limits but losses do not. You can still face major losses which can be a problem if you don’t have enough coverage to handle restoration. Extended dwelling coverage is an important consideration in Texas because of the following factors:
|
Pros: |
Cons: |
| More protection from the unexpected | Higher premiums |
| Peace of mind during major losses | Coverage is only for larger losses |
| An easier path to rebuilding your home after a catastrophic loss | Policy limits are higher but still exist |
Types of Dwelling Insurance
Texans have different types of dwelling insurance to choose from because there are different types of policies. This includes various home insurance policies but also includes condo insurance and landlord coverage. Here are a few examples:
- Dwelling fire insurance can help you protect a rental home. It also may be a solution for those living in condos or townhomes.
- HO-1, HO-2, HO-3, HO-5, and HO-8 policies are all home insurance but they have different coverages. How your dwelling coverage protects you will vary as your overall policy varies.
- The dwelling coverage in HO-6 policies is common for condos or townhomes.
Everyone has different needs and homes. Your best bet is to speak with a licensed insurance agent to compare your options and mitigate your risks.
How Much Should Dwelling Coverage Be for a Home in Texas?
On average, rebuilding the average home in Texas is going to run $200,000 to $300,000, but this can vary greatly for a number of reasons. The more expensive it is to rebuild your home, the more coverage you need. This also will vary due to the materials used in your home, size, etc.
No two homes are the same and the key remains to have coverage in the event your home is completely lost to a serious peril, such as a fire. Freedom Insurance Group can help you find the right coverage and save money while protecting your home.
We have over 25 top-rated partners and can compare your coverage needs to find the lowest rate. Contact a licensed insurance agent or get a home insurance quote to see how much you can save on dwelling coverage in Texas that doesn’t skimp on protection.
