Homeowners insurance is required by the lender in the amount of the mortgage to protect you and the lender against hazards like fire or storms. Most homeowners, however, opt for a more comprehensive policy that also offers liability protection. Some may even purchase flood insurance if their home is located in a flood plain.
Factors that affect the cost of your insurance include:
Property Protection
Property protection covers your property- home, other structures or possessions- if they are lost or damaged due to perils such as lightning, fire or wind (All policies will tell you which perils are covered). Most policies are divided into 4 main sections:
Your insurance agent will help you decide on an amount of insurance to purchase to cover the house.
Replacement Cost
In some cases, the insurance company requires that you purchase enough insurance (an amount equal to at least 80 percent of the value of your property) to get replacement cost coverage. The insurance value is different from the appraised value of the house; it is what it would cost to repair or replace a property and not what the market thinks is the value of the home.
Liability Protection
Liability insurance is called third-party coverage since it pays other people, not you. A typical homeowner’s policy provides $100,000 of liability coverage, although the amount can be increased or decreased. This coverage applies if you, any relative or dependent person in your care who lives in your home or your domestic pets become legally liable for injuring someone else or damaging their property.
In addition to liability insurance, your policy will include medical payment coverage that pays the medical costs of those hurt on your property regardless of liability. It is usually limited to $1,000 to $10,000.
TSAHC was created in 1994 as a self-sustaining nonprofit housing organization. At TSAHC we believe that every Texan deserves the opportunity to live in safe, decent and affordable housing. Our programs target the housing needs of low-income families and other underserved populations in Texas who do not have acceptable housing options through conventional financial channels. All TSAHC programs are offered statewide, with special attention given to rural areas and other select target areas.
Homebuyer Toll Free: 877-508-4611
General Toll Free: 888-638-3555
Main: 512-477-3555
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