Policy Type Descriptions
Eligibility is based on each company's underwriting guidelines, and not all applicants will meet those guidelines. In addition, not all companies sell in every area of the state. Contact the listed companies or the companies' agents directly to discuss your insurance needs. A company may redirect you to one of their agents to discuss coverage. Understand that even though the companies listed may be selling in Texas, they are not required to offer coverage to everyone. Companies may decide they are not writing insurance at this time or in certain areas. However, state law prohibits a company from rejecting coverage for reasons considered discriminatory.
- All-risk policies (also known as a comprehensive coverage or open perils coverage). These policies offer you broad protection and cover all causes of loss unless the policy specifically excludes them.
- Named perils policies (also known as specified perils coverage). These policies offer narrower protection than an all-risk policy and cover only the causes of loss specifically named in the policy.
Note about replacement cost and actual cash value:
- 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 doesn't include the value of your land. Ask your company if you aren't sure how much it would cost to rebuild your house.
- Actual cash value is what you would pay to rebuild or replace your property minus depreciation. Depreciation is a decrease in value due to wear and tear or age. If your home is destroyed and you only have actual cash value coverage, you may not be able to completely rebuild.
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