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Do You Have To Have Home Insurance In Texas?

Roughly one-third of Texas homeowners do not have a mortgage on their home, and they will often ask if insurance is required. Sometimes, they say they just don't see the point in paying all that money! Because of our crazy weather, Burleson residents feel the pinch of those premiums. We always try to answer directly when asked a question, and the answer to the question is no. Texans are not required by law to carry insurance on their home. However, there are reasons you can be required beyond the law itself.

Do you have to have home insurance in Texas?Mortgages

So we started off by saying that roughly one-third of Texas homeowners don't have a mortgage. So if you are like us, and in the two-thirds that DO have a mortgage, you are going to be required to carry home insurance. It is included in every single borrowing agreement you will ever sign. As a result, you will carry it, or they will assign you with what is known as forced placed insurance. And that stuff is crazy expensive. When you use other people's money, you have to play by their rules, and this one is no exception. Lenders want to make sure that the item that secures their loan amount is protected against loss. And you get to pay for it! How cool is that?

Other Debt

There are other forms of debt that can be levied against your home besides a mortgage. They can be home equity lines of credit or second liens. Since these are transactions done through a lender and secured by your property, they have the right to make you carry insurance to protect that asset. And you still get to pay for it. See a trend?

Reverse Mortgages

Reverse mortgages are not typical debt. So they get their own category here. They can be controversial depending upon who you talk to. We aren't here to pass judgement on them. Our job is to help you navigate the insurance requirements. Reverse mortgages are where you allow a company to essentially buy your home for a set price and then subsequently pay you via an income stream over time based on the unencumbered equity that it contains. That means you can supplement your retirement income with a monthly distribution. However, you are still on the hook for your home insurance. Since the income amount is finite, it is imperative to keep costs in check.

So What Does This Mean For Me

For the vast majority of Texans, having great home insurance at the best price is vitally important to their economic health. As an independent insurance agent, Insurance For Texans can help you account for the scenarios above and more. We work with many companies who can help you find the right coverage at the right price. Speak with one of our expert agents today.

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