Homeowners, landlords, renters, and business owners all have a similar need: protecting their property. If you fall into one or more of these categories, then you can relate. Property insurance in Texas is one of the most important financial tools that Texans have to protect their homes and personal belongings from harmful perils. The same goes for business owners who either own or rent a commercial property and are in need of protection from harm such as weather-related damage or vandalism.
Since 2005, Freedom Insurance Group has been helping Texans find the right property insurance for their needs all at an affordable price. Learn more by exploring how property insurance can specifically protect you and your property against many harmful perils and helps you restore losses should they occur.
What Does Property Insurance Cover?
What your property insurance policy covers will depend on many things. For starters, because property insurance is a broader term encompassing a range of insurance products, it will depend on the policies you enroll in to determine which perils are covered. Overall, your insurance policy/policies will protect your property from a range of perils that may come from weather-related damage, theft/vandalism, liability issues, and more. Your property’s structure, personal belongings, and/or other structures located on your property can all receive protection depending on the coverages you choose.
Who Needs Property Insurance?
If you own a home, are a renter, or are a business owner, you’ll need to invest in property insurance. The key is understanding which type of property insurance you’ll need to best protect you. Overall, your policy should be a safeguard against losses that would cause you to restore or replace your place of living, your personal possessions, your investment, your workplace, or all of the above.
Property Insurance for Homeowners
Homeowners insurance is a type of property insurance that provides a variety of protection against many different perils. As a homeowner, a standard home insurance policy will protect your home, other structures on your property such as a shed, personal belongings, and your finances against liability-related incidents. Your policy provides protection against things such as windstorm and hail damage, fires, theft/vandalism, and more.
Property Insurance for Landlords
Landlords are in need of a specific type of coverage that can be found in landlord insurance policies. This type of property insurance provides protection for your rental home, the other structures on the property, personal items so long as they are essential to the property, and liability in the event someone is injured while visiting your rental. If you are a landlord you can not rely on a home insurance policy here as it will not apply. Failure to disclose that your property is a rental can leave you exposed to various losses. Securing the right landlord insurance policy is the best way to protect your investment.
Property Insurance for Renters
Renting a property may mean that you are off of the hook for insuring your home, but you’ll still want to protect your personal possessions. While landlord insurance will cover personal items related to a property, they are referring to the landlord’s property. As a tenant, you are responsible for purchasing coverage that will protect your personal items in the event of a loss. Renters insurance is the perfect property insurance solution for such situations.
Commercial Property Insurance
Business owners can use commercial property insurance whether they own their own property or are renting a space. There are lots of things that can go wrong for a business but having to pay for damaged property, equipment, or a loss of supplies can be avoided. In Texas, there are three coverage options available to business owners depending on the level of protection you require. Commercial property insurance can make the difference between your business closing up shop after a destructive event and getting your operation back up and running.
Additional Forms of Property Insurance
Two weather events that are not covered by most standard home insurance policies can wreak havoc on your property in a number of destructive ways. Texans can purchase additional coverages for their homes and businesses should they desire a higher level of protection:
- Earthquake Insurance- A property insurance coverage that will reimburse you for damages sustained due to an earthquake.
- Flood Insurance- A separate property insurance policy that can help you restore your home, property, or business after suffering from flood damage.
While it is highly unlikely that most Texans need to worry about an earthquake, depending on where you live in the Lone Star State, you may want to consider flood insurance in addition to other forms of property insurance. As many as 1 in 4 flood-related claims come from areas that are outside of flood zones meaning that as the landscape of our state continues to change so too do the challenges of avoiding areas that flood.
How Much Property Insurance Do I Need?
You’ll want to have enough coverage to cover your property from a total loss. Many insurance providers require clients to purchase coverage that is capable of protecting a minimum of 80% of the value of the property in question; however, we advise that you invest in coverage that can cover 100% of your property in the event of a total loss.
Property insurance is something you hope to never use. Nobody wants to deal with a devastating fire or a break-in, but these things may happen. When they do, you’ll want to know that your property insurance policy is capable of restoring a full loss and getting you back up onto your feet.
How Property Insurance Is Calculated
Because property insurance is a broad term encompassing various types of insurance products, it is important to remember that each policy will be calculated differently. Different insurance carriers will also use unique calculations to create your monthly premium for your policies. However, one thing remains true throughout every type of insurance and every insurance carrier: each insurance provider is assessing how much risk you carry as a client when calculating your insurance premiums.
The more risk you carry as a client, the higher your property insurance premiums will be. Likewise, if you are a client that is less risky to insure, you’ll enjoy cheaper rates for your coverage. Everyone’s risk factors will be different because everyone has different circumstances surrounding their lives, but there are common factors that are assessed by insurance carriers. Here are some of the most frequent factors that will go into calculating an individual’s insurance rate:
- The amount of coverage you need.
- Where your home is located.
- The building materials used to construct your home.
- The age of your home.
- The number of claims you’ve submitted over the years.
- Your credit score.
- Your deductible.
- The discounts and bundling opportunities you qualify for.
Of course, these factors may vary depending on whether or not you are a homeowner, landlord, or renter, and the coverages you need. The same is true for business property insurance. Businesses are assessed on the amount of risk they pose as a client, however, some of the common factors that go into creating your commercial property insurance premium will be different than those of an individual:
- The industry you are operating in.
- The number of employees your operation has.
- The number of assets and the age of those assets including your building and equipment.
Although the challenges are different for homeowners, rents, and business owners, the idea behind assessing your risk as a client remains the same. Business owners will also need to consider that some similar factors to non-commercial property insurance will affect their rates including location, the amount of coverage you need, and your claims history. If you are looking to purchase property insurance, comparing your rates among many insurance providers can help you retain the protection you deserve all at a lower overall cost.
Affordable Property Insurance In Texas
Finding affordable property insurance in Texas doesn’t have to be a hassle. No matter which policies meet your needs, through comparison shopping, you’ll be able to find the best price for the coverage you need. For many consumers, we understand that this can be a timely endeavor as well as a complicated one. Here at Freedom Insurance Group, we’ve eliminated the hassle to deliver you quality insurance options all for less.
Our partnerships with more than 25 top-rated insurance providers allow us to quickly find the coverage you need among brands you can trust. After comparing your coverages, we provide you with the lowest price on the market allowing you to avoid cutting your protection in an effort to save money. We’ll even bundle your policy with your car insurance policy and search for discounts when applicable. Speak to an agent or get a free online home or landlord insurance quote today!
FAQs About Property Insurance
The world of property insurance is a complex one. There are many different people from all walks of life in need of such protection, and as a result, there are going to be some questions. While our agents are ready to answer your property insurance questions thoroughly, we do also find that there are some questions that get asked more than others. Freedom Insurance Group is proud to serve Texans as a resource on all things insurance-related. Feel free to take a closer look at our FAQ guide on property insurance as part of your research process, or contact us for answers to your specific coverage needs.
Are Property Insurance Premiums Tax-deductible?
If you are a homeowner or renter then your property insurance is usually not tax-deductible. For landlords, however, property insurance premiums may be tax-deductible as it is considered a business expense by the IRS.
Freedom Insurance Group may be experts at insuring Texans, but for taxes, we recommend relying on the pros. The different scenarios that may apply to your specific tax situation can create numerous outcomes, and your best bet is to speak to your CPA before making any financial decisions.
Which Property Insurance Is Best?
The best property insurance company in Texas is the one that can insure your property for all of its coverage needs at the lowest cost. Because each insurance provider uses different metrics and algorithms to determine your property insurance premiums, and you and everyone else have their own individual risk factors surrounding those needs, rates will vary. If you need property insurance in the Lone Star State, you’ll want to find the lowest provider for the exact coverage you need through comparison shopping among a variety of brands.
Is Property Insurance Mandatory?
No, under no circumstances are property insurance policies mandatory by law in the state of Texas. There are, however, many instances that some form of coverage may be required by other parties including lending houses or the government when using a government-backed loan to purchase your property:
- Home insurance is usually required by any homeowner as a term and condition of a mortgage. If you are using a mortgage to purchase your home, you’ll likely be required to acquire homeowners insurance before being approved.
- Government-backed home loans may require flood insurance on top of homeowners insurance depending on where your home is located in relation to flood zones.
Even if the above situations don’t apply to your coverage needs, property insurance is always a wise decision. The cost of restoring a major or total loss to your home, business assets, personal belongings, etc. is too much for many to bear. Holding affordable property insurance coverage eliminates this financial threat by providing reimbursement to help you restore your losses during the aftermath of suffering damage from a peril.