Texas Homeowners Insurance Coverage- HOB Policies

Today we continue discussing Texas Homeowners Insurance Coverage, the Texas HOB policy form and some of its variations. As previously mentioned, at one time, the HOB policy was the standard Home Insurance policy written in Texas. There were some HOA and HOC policies, but they were for specific situations and not widely used. Also, the HOB policy form was only used in Texas and the other 49 States did not use this type of coverage. This presented some problems for insurance companies from a software support and automation standpoint. But hey, we’re Texas, we get to be different.

Anyway, the HOB policy was and is an excellent policy. Most companies no longer use this coverage form in Texas, but when available and if priced competitively it is a great option. A “true” HOB provides all risk coverage on the dwelling, subject to exclusions, and named peril coverage on the contents. It will include replacement cost coverage, water damage coverage for sudden and accidental discharge of water and slow leaks, back up of sewer and drain coverage up to policy limits and foundation coverage up to policy limits. It is a very comprehensive policy and is hard to beat.

Again, the problem is that most companies no longer offer it. Many companies that are offering the HOB policy have now started offering what I would call a modified HOB. In this policy the company will excluded or limit certain coverages and still call it a HOB policy. Common examples are excluding slow leak coverage, limiting backup of sewer and drain coverage and limiting foundation coverage. These type of limitations make the HOB modified version no better that any other policy out there. Of course, many companies and agents market this as a standard HOB policy.

Even the HOB is no longer a standard policy in Texas. Buyer beware. Now more than ever, it is important to deal with a reputible, experienced and knowlegable agent so they can help guide you through the variations in coverage and assist you in making an informed decision.

For additional information on Texas Homeowners Insurance Coverage and HOB Policies, please visit our website at www.Quotes4insurance.com or contact our office directly at 972-771-7373 or 800-553-8102.