What to Look for in a Home Insurance Policy for Texas Coastal Homes

Living on the Texas coast offers beautiful views and a unique lifestyle, but coastal properties may face increased risks from hurricanes, floods, and strong winds. When choosing a home insurance policy for a coastal property, it’s important to consider several key factors to make sure you have adequate protection.

Windstorm and Hurricane Coverage

Texas coastal homes are particularly vulnerable to windstorms and hurricanes. Standard home insurance policies may limit the type and severity of windstorms covered or not cover wind damage at all. Check the terms of your home insurance coverage and consider purchasing a separate windstorm policy.

Flood Insurance

Home insurance policies often exclude damage from flooding. As flooding is a pervasive risk for coastal properties, you may need to purchase a separate flood insurance policy, especially if your property is in a high-risk flood area or built on lower ground.

Replacement Cost vs. Actual Cash Value

When insuring your home, you can choose between replacement cost coverage and actual cash value coverage. Replacement cost coverage pays to rebuild your home with similar materials, while actual cash value coverage only pays the value after accounting for wear and tear. Replacement cost coverage may be better for coastal homes because it can cover the higher costs of rebuilding in a coastal area.

Additional Living Expenses (ALE) Coverage

Many homeowners insurance policies include ALE coverage to cover hotel stays, restaurant meals, and other costs incurred while your home is being repaired in the event of a claim. Review your policy terms to check whether this endorsement is included.

Deductibles

Home insurance policies often have different deductibles for various types of damage. For coastal homes, windstorm and hurricane deductibles may be higher than standard deductibles. Review your policy to understand the deductibles you may be responsible for in the event of a claim.

Home Insurance in Texas

Knowing what to look for in a home insurance policy allows you to opt for coverage that provides robust protection for your coastal home. The team at Best Insurance Services can review your coverage today. Contact us to find out more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.