Companies may also offer alternative policy forms. These policies are not standardized and usually provide varying coverages. Read your policy carefully to know exactly what coverages are included. If a company offers you a policy with less coverage than you´d like, ask if other policy forms are available. You also may be able to add additional coverage by buying endorsements to the base policy.

Following is a brief description of the types of homeowners policies sold in Texas:

• HO-A policies provide extremely limited actual cash value coverage of your home and its contents. Only the types of damage specifically listed in the policy are covered. The HO-A is a standardized Texas policy.
• HO-A amended policies provide more extensive coverage than the base HO-A policy but less coverage than an HO-B. Coverage provided by these policies may differ by company.
• HO-B policies provide replacement cost coverage for most types of damage, except those specifically excluded in the policy. The HO-B is a standardized Texas policy.
• HO-C policies provide the most extensive coverage, but they are more expensive than other types of policies. The HO-C is a standardized Texas policy.
• Approved alternative policies offer varying levels of coverage. Companies may only sell alternative policies approved in advance by the Commissioner of Insurance. Coverage may differ considerably from one company to another and from the coverage provided in the standardized Texas homeowners policies.

Generally, HO-B policies provide the most coverage for the price, but some companies do not offer them. For a comparison of the policy forms approved for sale in Texas, visit the Office of Public Insurance Counsel´s website.

HO-A does not provide replacement cost coverage, but you may be able to add it with an endorsement for additional premium.

Companies use various methods to determine the estimated replacement cost of your home. Be prepared to answer questions about your home´s square footage, number of bedrooms, and number of bathrooms. Inform the agent of any custom features that are part of the dwelling.

When calculating your home´s replacement cost, deduct the value of the land, foundations that are below the surface of the ground, and other items such as landscaping and lawn sprinkler systems.

Construction costs change, so it´s wise to update your coverage amounts annually.

Keep in mind that if you raise your deductible, you´ll have to pay more out of pocket for repairs and replacement before your policy pays.

• Most Policies Cover -
• Fire and lightning
• Damage by aircraft & vehicles
• Vandalism & malicious mischief
• Theft
• Explosion
• Riot & civil commotion
• Smoke damage
• Falling objects
• Windstorm, hurricane and hail
• Collapse of building
• Freezing
• Accidental discharge, leakage or overflow of water or steam

Loss of Use Coverage On all Homeowners Policies, coverage is included that will pay for the extra cost of having to reside in temporary quarters while your residence is being repaired. There is a requirement that the damage to the residence must have been caused by an insured peril.

• Flooding
• Earthquakes
• Termite damage
• Damage by insects, rats and mice
• Freezing pipes while your house is unoccupied (unless you turned off the water or heated the building)
• Losses if your house is vacant for 60 days or more
• Wind or hail damage to trees and shrubs

Most homeowners policies provide replacement cost coverage for your house, up to your policy's dollar limits. Replacement cost is what you would pay to rebuild or repair your home, based on current construction costs. Replacement cost is different from market value. It does not include the value of your land.

To receive full payment (minus your deductible) for a partial loss, such as a hail-damaged roof, you must insure your house for at least 80 percent of its replacement cost. If you insure your house for less than 80 percent of the full replacement cost, the policy will pay only part of the expense of a partial loss.

Texas law requires payment of the full amount of the policy if fire destroys your home -- even if this amount is more than the replacement cost.

Your policy's dollar limits are important if you ever file a claim. If you insure your house for $80,000, for example, that is the most you will get if it is destroyed. The Declarations page on the front of your policy shows how much coverage you have.

Replacement cost coverage gives you more protection than actual cash value coverage. The following example tells why: A burglar steals your six-year-old television set. With actual cash value coverage, you get only what you would expect to pay for a six-year-old television set. With replacement cost coverage, the insurance company pays to replace your TV with a new set similar to the stolen one.

Residence Glass Coverage * This endorsement provides blanket residence glass breakage coverage limited to $100 per pane with no deductible. Scheduled glass coverage is also available for any items above this amount.

Increased Limit on Jewelry, Watches and Furs * The policy has a $500 theft limitation on jewelry, watches, and furs. The limit may be increased not exceeding $5,000.

Increased Limits on Business Personal Property * There is a policy limitation of $2,500 (any one loss) on losses of property pertaining to a ranch, farm, business, trade, occupation or profession. This endorsement can be attached to increase this amount to a total of $5,000.

Increased Limit on Money/Bank Cards * The homeowners policy covers money and bank cards up to $100. This endorsement can increase that amount up to $500.

Television Antenna/Satellite Dish * Specific Coverage with no deductible may be added by this endorsement for radio and television towers, masts, antennas, and outside satellite dishes.

Personal Computer Coverage * Specific Coverage for electronic data processing equipment or electronic media that you own or lease may be added subject to a $100 deductible.

• Your dog may bite a neighbor or passer-by.
• You may accidentally injure someone else while hunting or playing golf.
• Someone could be injured in your swimming pool or slip and fall on your property.

Personal Liability Coverage not only protects you for things happening on your premises but also for your personal activities worldwide. This liability coverage does not cover your business activities. The minimum required limit of Personal Liability Coverage is $25,000 but can be increased for a small additional premium.

Personal Medical Payments This coverage provides for medical bills that result from an accident which occurs on your premises or as a result of your personal activities. Medical Payments Coverage applies regardless of whether you or your family is at fault.

EXAMPLE: If a neighbor's child fell from a tree at your home and broke her arm, the Medical Payments Coverage will pay the resulting medical expenses.

This coverage does not pay for medical bills incurred by you or members of your household. Minimum Medical Payments Coverage of $500 is required on all homeowners policies but may be increased to $5,000 for a small additional premium.

Home Security - You can get a 5 percent premium discount if your house meets certain minimum security standards for doors and windows.

Burglar Alarms - You can get a 15 percent premium discount if you have an electronic burglar alarm system that meets certain minimum requirements.

Sprinkler Systems - Effective March 1, 1997, you can save 8 percent on your homeowners premium if your home has an approved fire protection sprinkler system.