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Texas Department of Insurance
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July 29, 2021

Home insurance isn’t required. But it makes sense.

No law requires you to have home insurance. But having a policy can protect your investment, giving you peace of mind.

If you have a mortgage, your lender probably requires home insurance.

A new study by the Texas Real Estate Research Center estimates that 4.1% of Texas homeowner households with a mortgage don’t have home insurance. In contrast, 26% of Texas residents who own their homes free and clear of debt lack home insurance—with rural homeowners generally more likely to lack coverage, the study says.

A home policy can help even if your home is paid off. It shields you from facing potentially massive out-of-pocket costs to repair or rebuild if a burst pipe, fire, or other incident wreaks damage.

Questions to ask your agent or insurance company

  • What kinds of damages does the home policy cover?
  • Does the policy fully cover replacing my house and possessions?
  • What’s the premium, what I pay for the policy up front?
  • What’s my deductible, what I must pay before the insurance pays anything?
  • Do I need additional coverage such as a flood policy?

See more in our new video on common questions about home insurance.

Ready to shop? Find and compare Texas home insurance policies or use TDI’s home insurance guide.