Hail damage is included in most homeowners policies
Yes, hailstorm coverage is included as one of the named perils in most home insurance policies in Texas.
How are home insurance policies different in Texas?
Homeowners insurance policies in Texas offer the same basic types of coverage as those in other states, but a naming convention based on older form types can still be found in use today. The most common example is the Texas Homeowners Type-B form, referred to as HOB.
This terminology is familiar among the Texas insurance industry, but should not be considered a direct map to HO-3 or any other modern policy description. If you see a policy listed as HOB, take time to confirm the details of what it covers and how it compares to other available home coverage options.
How do wind/hail deductibles work?
All traditional homeowners insurance policies carry a deductible that must be paid by the policyholder in the event that they file a claim. Home insurance deductibles are typically defined as a flat fee, often $1,000 or $2,000, but sometimes higher or lower.
Wind and hail coverage that is included in a homeowners policy often carries its own separately priced deductible, most often defined as a percentage of the total insured value of the property. If you purchased a homeowners policy for your home, valued at $450,000, a 3% wind and hail deductible that you’d owe when you filed a claim would be $13,500, while the deductible for any other type of damage might only be $2,000.
How are wind and hail deductibles different in Texas?
Some regions of Texas see higher percentage deductibles thanks to their higher risk of wind- and hailstorms through most of the year. Coastal Texas is also classified differently by most insurers due to the threat of hurricanes, typhoons, and tropical storms making landfall from the Gulf.
There are additional state regulations around wind and hail deductibles in Texas and several other states. In previous years, it was common for roofing contractors to ask every homeowner in a neighborhood that had experienced hail if they’d like to get their roof replaced, with the roofers often claiming that this would be ‘free’ for the homeowner. Their proposition would involve an offer to waive the homeowner’s owed deductible if they were awarded the job.
The roofer would make the claim through the homeowner’s insurance carrier, receive the full payout for the work, and replace the work using the cheapest materials and labor they could find. This scheme is actually illegal in Texas, Oklahoma, and other states. A cheap or nearly-free roof might sound like a great deal, but when it means a chance of fraud charges for the roofer and the homeowner both, it should be an easy offer to walk away from.
What to do if your Texas home takes hail damage
If a hailstorm passes over your home and you believe you may have taken damage, it’s recommended that you request the help of a professional to create a roofing report, complete with photographs, for your records. If the report and photos show damage to your roof, you may choose to file a claim on your homeowners policy. If the damage appears to be minimal, there are other solutions to pursue.
With the addition of a supplemental wind and hail deductible assistance policy that is independent of your primary homeowners policy, the policyholder gains a popular second option. Claims made on the add-on policy will not affect your premiums for other policies, nor will they impact your insurance claims history (the CLUE Report), meaning no potential issues with getting the best price for coverage or buying an additional insurance policy in the future.
A hybrid parametric hail policy like Sola’s Wind and Hail coverage can be used to cover the repairs, to pay other related costs, or to help cover a high percentage hail deductible set by the main policy.
This flexibility is one reason this type of add-on coverage is a popular choice for many Texas homeowners today.
FAQs:
Does a home insurance claim in Texas make my rates go up?
Yes, claims made on a homeowners insurance policy will usually result in a higher premium for the policy at your next renewal. While a single claim may not affect the cost, any additional claims beyond the first one will, and may also result in a ‘non-renewal’ decision, leaving you with the challenge of finding new home insurance coverage with a tarnished insurance claims history.
Does home hail insurance cover damage to my car, parked at home?
No, a homeowners insurance policy does not cover your vehicles, even if they are parked at your home. A separate auto policy is needed to provide coverage for hail damage to your car.
How much does hail insurance cost in Texas?
Hail coverage included in a homeowners insurance policy isn’t priced out as a line item, but a report released by the Colorado Division of Insurance found that the cost of hail coverage can be responsible for anywhere from 26% to 54% of the total homeowners insurance premium, generally the largest percentage of the premium the homeowner pays.
Gray is the Senior Content Specialist at Sola Insurance, working with the Sales and Marketing teams to provide helpful, valuable content for homeowners and agents. Gray has worked previously in finance, logistics, and advertising.
