So technically the answer is NO. There is no law stating you have to have homeowners insurance if you own a home.
Your mortgage lender may require you to have homeowners insurance before they will lend you the money to buy the home.
Why?
They have loaned you money to buy this house. If you suffer a loss due to damage of the home, the mortgage is out that money if you are not covered. They loan money to make money. If your home has no value, or the value is diminished, the mortgage looses money. They need to know the value of your home is covered. So they will require you to have insurance to cover the cost of rebuilding.
Does it matter what insurance coverage you have?
You will want the Dwelling Coverage to cover the cost of rebuilding your home from the ground up in the case of a total loss. Most carriers will decide what they believe it would cost to rebuild, but most mortgage companies will want the amount to be above the loan amount. Most mortgages will also require you have Liability Coverage for any 3rd party claims (slip and falls, dog bites...). And if you are in a high risk flood zone (your mortgage will tell you!) you will be required to have Flood Coverage as well. Flood is not covered by Homeowners insurance so it will be a separate policy.
So legally, No, you do not have to have Homeowners insurance for your home. But if you have a mortgage they will, most likely, require you to have (and maintain) a homeowners insurance policy. Even if you are not required to have the coverage, I urge you to have a policy anyway. The average annual premium in Texas is $1100, and I know this can put a strain on the budget, but it will cost you much more if you have a fire without the coverage to rebuild your home. Or what if there is a hurricane? or a hail storm? These types of storms are common in our state and the damage is costly! Be smart. Protect what is most likely your largest investment.
They have loaned you money to buy this house. If you suffer a loss due to damage of the home, the mortgage is out that money if you are not covered. They loan money to make money. If your home has no value, or the value is diminished, the mortgage looses money. They need to know the value of your home is covered. So they will require you to have insurance to cover the cost of rebuilding.
Does it matter what insurance coverage you have?
You will want the Dwelling Coverage to cover the cost of rebuilding your home from the ground up in the case of a total loss. Most carriers will decide what they believe it would cost to rebuild, but most mortgage companies will want the amount to be above the loan amount. Most mortgages will also require you have Liability Coverage for any 3rd party claims (slip and falls, dog bites...). And if you are in a high risk flood zone (your mortgage will tell you!) you will be required to have Flood Coverage as well. Flood is not covered by Homeowners insurance so it will be a separate policy.
So legally, No, you do not have to have Homeowners insurance for your home. But if you have a mortgage they will, most likely, require you to have (and maintain) a homeowners insurance policy. Even if you are not required to have the coverage, I urge you to have a policy anyway. The average annual premium in Texas is $1100, and I know this can put a strain on the budget, but it will cost you much more if you have a fire without the coverage to rebuild your home. Or what if there is a hurricane? or a hail storm? These types of storms are common in our state and the damage is costly! Be smart. Protect what is most likely your largest investment.
There are
three ways to request a quote for your insurance needs:
* Call Brockman
Premier Insurance at 877-987-8683
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