When shopping for homeowners insurance be sure to ask about the company’s policies.
An insurance policy is a contract between you and your insurance company.
Homeowners insurance pays to repair or replace your home or personal property if it is damaged or destroyed because of something — such as a fire, storm, or theft – that’s covered by your policy. Your policy states the types of losses it will cover and the maximum amount it will pay. Read the policy carefully to understand exactly what it covers and the dollar limit of the coverage.Don’t forget to ask what their policy is regarding claims and non-renewal.
You should also understand your rights.
Texas has a Consumer Bill of Rights for homeowners and renters insurance. Your company must send you the Bill of Rights when you get or renew a policy. Also check the Texas Department of Insurance website for the insurance company’s profile. This profile shows the financial rating of the company as well as the complaint ratio, and any enforcement actions taken by the Department against the company.