If you are looking for Texas Home Insurance and are considering a HOA, HOA Plus or HOA Enhanced policy, you will want to understand what is covered before you purchase the policy.
Coverage can vary greatly from company to company and it is important to know what options are included when you are shopping for rates and coverage. Many people look for quotes online and sometimes it is difficult to gain a clear understanding of the coverage included without speaking with an agent. Many companies offer HOA plus policies with outstanding coverage and great prices. These policies are well worth considering.
All of the HOA policy forms have what is called “Named Peril Coverage”. Which means, if it is not named as covered on the policy, it is excluded. The Basic HOA policy is very limited in nature. The basic named perils are Fire, Lightning, Windstorm, Hurricane, Hail, Explosion, Damage by Vehicles, Damage by Aircraft, Riot and Civil Commotion, Smoke and Vandalism and nothing else. There is no coverage for water damage of any kind and no replacement cost coverage. This policy is used mainly for older homes in poor condition where better coverage is not available and it offers a good solution at a low price for those situations. It has often been referred to as a “Fire Policy”, because the coverage is very limited.
Most companies that use the HOA Policy form actually write it as a HOA Plus or HOA Enhanced Policy. The terms “Plus” or “Enhanced” are interchangeable and vary by company. Significant coverage enhancements are added to the policy and it becomes an excellent option for home insurance in Dallas, Ft Worth, Austin, San Antonio or anywhere else in the great State of Texas.
These coverage enhancements generally include a substantial increase in the named perils, the addition of water damage coverage for sudden and accidental discharge of water (not slow leaks), backup of sewers and drains, foundation coverage, replacement cost coverage and more. I have even seen some HOA Plus policies that now offer water damage for slow and/or continuous seepage or leaks.
When these endorsements are added, this becomes an excellent policy and often can save you hundreds of dollars on your premium and still offer great home owner’s insurance coverage. Some agents that do not have this coverage available to them, will speak negatively about this type of policy and make blanket statements to justify their higher premium. They will usually reference the coverage on a Basic HOA instead of the HOA Plus Policy to make their policy look better. The main reason this normally happens is that they only have one policy type available and are willing to do just about anything to get or keep your business. Beware of agents or agencies with limited offerings, they tend to recommend what is best for them and often cannot remain objective or worse yet, they really do not understand the different types coverage available to begin with.
Deal with a reputable, experienced agency that has multiple policy types and coverage’s available. This will ensure that you are getting the best fit for your insurance needs.