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Texas Department of Insurance
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March 3, 2022

New home? How to shop for insurance.

If you’re buying a home, it could be your biggest investment. You’ll want to make sure that it’s protected. 

Most people ask their insurance company how much a home policy will cost. But there’s more to home insurance than the price. You want to be sure you’re getting the coverage you need. Here are some of the questions you should ask when shopping for insurance:

What types of damages will this policy pay for?

Beyond the basic fire and theft, ask what other types of damages the policy pays for. Also ask what it doesn’t pay for. One coverage you’ll want to ask more about is water damage.

Do I need flood insurance if I don’t live in a flood zone?

You’ll want to consider flood insurance even if you don’t live on the coast or near a lake or river. Almost every major city in Texas is in an area at risk of flooding. Home policies don’t pay for flood damage; you’ll need a separate flood policy.

How can I check a home’s insurance claims history?

Ask your insurance company or the property owner for the home’s Comprehensive Loss Underwriting Exchange (CLUE) report. The CLUE report shows any claims filed in the past seven years. For buyers, it shows repairs or damages, even ones you may not be able to see. Past claims could affect the premium amount on the new policy.

Does this house have any features that could lower my premium amount?

Ask your insurance company if the roof is new and if the house has an alarm system or fire sprinkler. Those features could earn discounts on your insurance.

Should I shop around for insurance?

Yes. People shop around for other large investments. Insurance is no different. It can be complicated but you want to the have the right coverage at the right time for the right risk.