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Types of Insurance to Protect Your Home
Flood Insurance Texas
ranks near the top of the nation in weather-related property damage each year. A large portion of this damage is caused by
flooding.
Homeowners policies do not
cover flood damage. To protect yourself from losses caused by most flooding, you can purchase a
separate flood insurance policy from the National Flood Insurance Program (NFIP) administered by the Federal Emergency Management
Agency. ARCA Insurance Services sell NFIP flood policies and can tell you about the program in your area. For more
information, contact NFIP or ARCA Insurance Services. www.floodsmart.gov
1-800-427-4661
Hurricanes
and Windstorm Insurance The Texas Windstorm Insurance Association (TWIA) is the state’s insurer of last resort for wind and hail
coverage in the 14 coastal counties and parts of Harris County on Galveston Bay. TWIA provides wind and hail coverage when
insurance companies exclude it from homeowners and other property policies sold to coastal residents. You can buy TWIA coverage
through ARCA Insurance Services if you require it. When a hurricane enters the Gulf of Mexico (80 degrees longitude and 20 degrees latitude), you
can no longer change or purchase new windstorm coverage. If you plan to build, add to, or renovate a home or other structure and want TWIA coverage, you or your builder
should request an inspection by a TDI windstorm inspector or a Texas licensed professional engineer appointed by TDI. ARCA
can tell you how to get an inspection. For more information about windstorm coverage, contact TWIA or ARCA Insurance Services. www.twia.org
1-800-788-8247
Earthquake Insurance If
you are concerned about earthquakes, you can get coverage with a separate policy. The cost is relatively low because earthquakes
are rare in Texas. Extra Coverage (Endorsements) You
might want more coverage than your policy provides for certain items. For an extra premium, you may be able to buy endorsements
that expand or increase the coverage on these items. Some of the most common endorsements expand or increase coverage for
jewelry, fine arts, camera equipment, coin or stamp collections, computer equipment, and radio and television satellite dishes
and antennas. Personal Umbrella Liability Insurance If you have assets to protect and want
more liability coverage than a homeowners policy provides, you can buy a separate umbrella policy. Because policies vary,
let ARCA fully explain the coverage and insure you the way you need to be insured.
Types Of Homeowners
Policies in Texas
Insurance companies may sell several types of policies in Texas, each with a different
level of coverage. Three of the policy forms available for sale in Texas – the HO-A, HO-B, and HO-C – are standardized.
This means the policy language and coverages provided by these policies are the same, regardless of the company writing the
policy. Although an HO-B policy written by one company will be exactly the same as an HO-B policy written by another company,
the two companies may charge different rates. Companies may offer alternative policy forms, if approved in advance by
the Commissioner of Insurance. These policies are not standardized and usually provide varying coverages. Read your policy
carefully to know exactly what coverages are included. Some companies may sell more than one policy form but may offer only one
form to customers. If a company offers you a policy with less coverage than you’d like, ask if other policy forms are
available. You also may be able to add additional coverage by buying endorsements to your base policy.
Following is a
brief description of the types of policies sold in Texas: - HO-A policies provide extremely limited actual cash value coverage of your home and its contents. Only the
types of damage specifically listed in the policy are covered. The HO-A is a standardized Texas policy.
- HO-A amended policies provide more extensive coverage than the base HO-A policy but less coverage than
an HO-B. HO-A amended policies are not standardized. Coverage provided by these policies may differ by company.
- HO-B
policies provide replacement cost coverage for most types of damage, except those specifically excluded in the policy. The
HO-B is a standardized Texas policy.
- HO-C policies provide the most
extensive coverage, but they are more expensive than other types of policies. The HO-C is a standardized Texas policy.
Approved alternative
policies offer varying levels of coverage. Companies can sell alternative policies only if the policy form is approved in
advance by the Commissioner of Insurance. These policies are not standardized. Coverage may differ considerably from one company
to another and from the coverage provided in the standardized Texas homeowners policies. Generally, HO-B policies
provide the most coverage for the price, but some companies do not offer the HO-B policy. For a side-by-side comparison of
the coverages provided by the policy forms approved for sale in Texas, visit the website of the Office of Public Insurance
Counsel (OPIC)
What Homeowners Policies
Do and Don't Cover
| Most Policies Cover
Losses Caused by | Most Policies Do Not Cover
Losses Caused by | | Fire and lightning | Flooding | | Aircraft
and vehicles | Earthquakes | | Vandalism and malicious mischief | Termites | | Theft | Insects,
rats, or mice | | Explosion | Freezing pipes while your house is unoccupied (unless you turned off the water or heated the
building) | | Riot and civil commotion | Wind or hail damage to trees and shrubs | | Smoke | Losses if your house is vacant for 60 days
or more | | Windstorm, hurricane, and hail | Wear and tear or maintenance | | Sudden
and accidental water damage | Water damage resulting from continuous
and repeated seepage |
Companies may exclude coverage
for certain losses. For example, if you live on the Gulf Coast, you might receive an endorsement that excludes coverage for
wind and hail damage. In areas with a history of hail storms, some companies provide only actual cash value coverage instead
of full replacement cost for roofs. Actual cash value pays for damage minus depreciation on the roof, depending on its age
and condition.
Most policies will not cover mold remediation beyond that necessary to repair or replace property damaged
caused by a water loss otherwise covered by the policy. The HO-A policy doesn’t cover mold remediation or damage caused
by water leaks, but some companies offer an endorsement that covers sudden and accidental water leaks. Some, but not all,
of the other approved policy forms also cover sudden and accidental water leaks. Read your policy or ask your agent whether
your policy covers water leaks and mold remediation.
Insurance companies are required to offer you mold remediation coverage. Depending on
the company, this coverage will be offered in dollar or percentage increments up to 100 percent of your policy’s limits.
If you have questions or concerns about how a mold claim is being handled, or if you need information about how to minimize
mold losses, ask your insurance company for a set of guidelines regarding mold claims.
What is Replacement
Cost and am I Protected?
The standardized HO-B and HO-C policies provide replacement cost coverage for your
house, up to your policy’s dollar limits. Replacement cost is what you would pay to rebuild or repair your home, based
on current construction costs. Replacement cost is different from market value and does not include the value of your land.
If you are not sure of the amount it would cost to rebuild your home, your company or agent usually has construction cost
tables to help you determine the cost. To receive full payment (minus your deductible) for a partial loss, such as a hail-damaged roof,
you must insure your house for at least 80 percent of its replacement cost. If you insure your house for less than 80 percent
of the full replacement cost, the insurance company will pay only part of the expense of a partial loss.
Unless you buy an endorsement
increasing your coverage, HO-A policies only provide actual cash value coverage. Actual cash value is the replacement cost
of your property minus depreciation. If your home is destroyed and you only have actual cash value coverage, you may not be
able to completely rebuild.
If you have an HO-A amended policy or an approved alternative policy, read your policy carefully to know
whether it offers replacement cost coverage or actual cash value coverage.
At ARCA, we conduct a comprehensive policy review to ensure that your home is properly insured for replacement
cost!
Get your Instant Online Quote Today!
For more information or would like to speak to a representative, please call: (979) 822-4912
ARCA Insurance Services * 3620 E. 29th St. * Bryan,
TX. * US * 77802
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