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Homeowners insurance won’t cover you
In Texas, taking care of up to three unrelated children in your home for at least three hours a day, three or more days a week, is considered a listed family home. Because a listed family home is a business, homeowners insurance won’t cover losses related to your home daycare.
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You need liability coverage
You need to be covered if something happens to a child while in your care, either at your home or elsewhere. Liability insurance helps cover injuries and accidents. In Texas, a listed family home or other daycare must have at least $300,000 in liability insurance to cover each child in your care involved in an incident of negligence.
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Notify parents if you’re exempt
There are exceptions, including daycares that can’t find a company to insure them or that have used up the limits of a $300,000 policy. If your business qualifies for an exception, you must give written notice to every parent or guardian with a child in your care. There’s a form you can use to do that.
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Get approved
For a listed family home to operate in Texas, you need to get a listing from Child Care Licensing at the Texas Health and Human Services. A good way to start is to create a Child Care Regulation online account or contact your local Child Care Licensing Office.
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