For most, a home represents the American dream – a place to call your own where you build memories for you and your family. It also represents years of hard work in creating this nest of yours. It’s important you protect the place you call home with the right mix of insurance coverages against everything from property damage to liability losses. The last thing you want to do is put your peace of mind – and investment – at risk.

Preferred Insurance provides coverage solutions to homeowners throughout Texas. As your insurance partner we will evaluate your specific exposures, assess the extent of potential losses and what a loss would mean to you if you were not properly covered, and make informed recommendations to put together a competitive, comprehensive Homeowners insurance program for you. If you rent, we also highly recommend that you purchase a Renters policy to protect your belongings.

Inside a Homeowners Insurance Policy

A Home insurance policy covers your dwelling if your house is damaged or destroyed by a covered loss, such as fire. Your personal property (furniture, clothing, appliances, equipment, etc.) will also be covered if damaged, stolen or destroyed. In addition, any other structures, such as a detached garage, storage shed or fence would be covered if it had to be repaired or rebuilt. Equally important, if you do suffer a loss where you were forced to move and stay either at a hotel or rental while repairs or rebuilding takes place, your Homeowners policy would respond by paying for “loss of use.” This involves the additional living expenses you incur during your temporary move. The policy pay would either a percentage of the amount of your dwelling coverage (typically 10 to 20 percent) or for a specific period after the loss (such as 24 months).

The Personal Liability portion of your Homeowners insurance provides coverage should someone become injured on your premises. You will have access to defense costs and payments for any settlements if you are found liable. The Medical Payments component of your policy will pay for the medical bills for people hurt on your property.

Types of Homeowners Policies Available in Texas

There are several types of insurance policies available for Texas homeowners. This includes:

  • All-risk policies where you receive broad protection for all types of losses (fire, lightning, theft, vandalism) unless the policy specifically excludes a specific cause. For example, flooding or earthquake damage would not be covered and requires a separate Flood or Earthquake insurance policy. We can assess your specific need for Flood insurance depending on where you are located. If you live on the Gulf Coast of Texas, we will also assess your need for a separate Windstorm policy as windstorm damage is typically excluded for this area. We can also review whether you need additional coverage on specific items, such as jewelry and fine art or other collectibles.
  • 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.

What Is the Difference Between Replacement Cost vs. Actual Cash Value?

A Homeowners policy can be purchased with Replacement Cost coverage on the building and for your personal content. Replacement Cost coverage will pay you 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. Or, you can opt to have a policy that offers coverage on an Actual Cash Value basis, which in the event of a loss would pay what it would cost to rebuild or replace your property, less depreciation. Depreciation is a decrease in value due to wear and tear or age. Please be aware that if your home is destroyed and you only have actual cash value coverage, you may not be able to completely rebuild.

Inside a Renter’s Policy

One of the benefits of renting a home or an apartment is freedom and not having the responsibility if the structure is damage. But who pays if your belongings (furniture, clothing, computer equipment) are damaged or stolen? What if one of your party guests falls down in your apartment or your dog bites a visitor and someone now needs medical attention? Don’t look to your landlord for those expenses.

We can’t stress enough how important it is to have a Renter’s policy. About one-third of renters go without insurance nationwide, and when there is a loss and they realize that their landlord’s policy will not cover damage to their personal content or for liability within their home it can be a rude awakening. The cost for Renter’s insurance is affordable and the coverage you receive is quite broad. Your personal property will be protected in the event of fire, theft, water damage, and other unforeseen circumstances that your landlord’s policy doesn’t cover. In addition, Renters insurance can provide coverage for not only the contents inside of your residence, but liability and medical protection for your guests.

In deciding the limits of your Renter’s policy, it is important to properly assess the correct value for all of your personal belongings. We suggest taking inventory of your belongings and keeping that information in a safe place. You can use your smartphone to do so and upload the inventory to the cloud. Or, if you prefer take a written inventory and keep it in a fireproof safe or a safety deposit box away from your residence.

Water Damage vs. Flood Damage

As with a Homeowners policy, Renter’s insurance does not cover flood damage. A separate Flood insurance policy must be purchased. A flood is defined as a rising and overflowing body of water onto normally dry land. Generally, damage caused by water that has been on the ground at some point before damaging your home is considered flood damage. For example, a nearby lake or river overflows and causes a flash flood in your home. Or, a storm drain or sewer drain gets backed up and causes a flood through the patio on the first floor of an apartment building.

On the other hand, water damage is the opposite from flood damage, and considered to occur when water damages your home before the water comes in contact with the ground. For example, water damage may occur during a heavy rainstorm and water leaks through your roof onto your furniture, floor, etc. causing damage. Or, perhaps a pipe/hose from your washing machine breaks, causing water to leak causing damage.

Our professional staff at Preferred is available to discuss in detail the coverage you need for your residence as well as any additional limits, including a Personal Umbrella, endorsements and separate policies to keep your nest safely protected.

Make Preferred Your Insurance Choice

The hallmarks of our success are our integrity, ethics, reliability and the value we place on our clients. We invite to learn more about us, and make Preferred your agency of choice. Give us a call at 888-943-5144 or email us at