Coverage and Policy Options
DWELLING LIMITS
One recent report showed that 60% of all homes are underinsured. It is best to insure your property for the full cost to rebuild. This is often higher than the appraised value.
PACKAGES
Many landlord policies start with a group of coverage’s that are standardized by the Texas department of insurance.
For example a TDP 1 with extended coverage includes the dwelling and outbuildings for fire, lightning, windstorm, hurricane, hail explosion, riot, aircraft or vehicle damage, and sudden smoke damage. (In some costal areas windstorm and hurricane may be excluded)
TDP 2 would be an upgrade that would include vandalism, bursting of water pipes, freezing of plumbing, collapse of building, weight of ice and snow, and glass breakage.
TDP 3 would be the above plus special form on building, replacement cost, and landscape items. In most cases the TDP 3 is about $100 per year more than a TDP 1 and it is a good value for the extra cost. However if the property is vacant a TPP 1 policy is usually the only option.
DEDUCTIBLES
For most policies you will be able to select the deductible. Higher deductibles will reduce the insurance premium but increase how much you pay if there is a claim. If you have a mortgage on the property the lender may require a deductible of 2% or less for windstorm and 1% or less for other coverages.
UPGRADES
Some policies will have options available at additional cost. One key item is liability insurance. This is a good option to have and typically available with limits of $25,000 to $500,000. We suggest getting at least $100,000 in coverage for this. If you have any personal property you can add coverage for that. If you do get personal property coverage we suggest getting the replacement cost option also. Mold coverage is usually not included but you may be able to add this at extra cost if you wish.
DISCLAIMER
Please ask an agent for policy details. This information does not define policy coverage. Coverage’s and definitions are provided by the actual policy and not our website information.
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