Your home is probably your biggest investment. But what would happen if it caught fire, flooded, or got hit by a storm? You’d want help paying for repairs or replacing your things, right? That’s where homeowners’ insurance comes in.
Here’s the thing: you may be wondering if it’s actually required. After all, no one wants to pay for something they don’t need. So let’s break it down. If you own a home in Texas, you’ll want to understand when insurance is required and why it still matters even when it’s not.
This guide answers your biggest questions, explains your options, and helps you make smart choices to protect your home and everything in it.
Is Homeowners’ Insurance Required in Texas?
No, homeowner’s insurance is not required by state law. Texas doesn’t make homeowners buy insurance the way it does for car insurance. That said, there’s a big “but” here.
If you have a mortgage, your lender will almost always require you to have a homeowners policy. It protects their investment if something happens to the home.
So while the state won’t force you to get insurance, your bank or mortgage company probably will.
Understanding Texas Home Insurance Laws
Texas law doesn’t say you have to carry homeowners insurance, but it does regulate how companies operate. That includes rules for:
- How quickly insurance claims must be handled
- What companies must include in policies
- How they can cancel or deny coverage
And if you live along the coast, there’s another rule to know: standard insurance may not cover wind damage.
Why Mortgage Lenders Might Still Require It
Your home is the collateral on your loan. If it burns down or floods, your lender doesn’t want to be left holding the bag. Insurance helps guarantee the home can be repaired or rebuilt.
Here’s what most lenders look for in a policy:
| Coverage Type | What It Does |
| Dwelling coverage | Pays to rebuild or repair the home structure |
| Replacement cost coverage | Replaces your home or belongings without subtracting depreciation |
| Personal belongings | Covers furniture, electronics, clothes, and more |
| Liability coverage | Helps if someone gets injured on your property |
| Additional living expenses | Pays for a hotel or rental if your home is unlivable |
Why You Still Need Homeowners Insurance; Even If It’s Not Required
Skipping insurance might seem like a way to save money, but it can cost you a lot more in the long run. One broken pipe or a strong storm can lead to thousands of dollars in water damage, ruined furniture, or even a total loss. Without coverage, you’d be stuck paying for everything out of pocket.
If someone slips and sues you, you could be responsible for their medical bills. If your home is destroyed by fire or a major storm, you’d have no financial help to rebuild. If someone breaks in and steals your personal items, you’d have to replace them on your own. Homeowners’ insurance helps cover medical bills, property damage, and the unexpected costs that come with rebuilding your life after a loss.
What Impacts the Cost of Homeowners Insurance in Texas?
A few things can raise or lower your premium:
- Type of home: Older homes or homes with a history of claims may cost more to insure.
- Location: Coastal areas may require extra windstorm insurance.
- Credit score: Many insurers use it to determine rates.
- Claim history: Fewer past claims can help lower your costs.
- Types of coverage: More coverage or higher limits will increase your premium.
Pro tip: Don’t just look at price. Make sure your policy actually covers what matters to you.
Flood Insurance Options in Texas: NFIP vs. Private
As hurricane season approaches, flood coverage matters more than ever. If your home sits in a high-risk area or you’ve had water damage before, you may need more than just standard homeowners insurance. There are two main types of flood insurance to choose from:
| Type | Who Offers It | Key Features |
| NFIP Flood Insurance | FEMA-backed, government-issued | Set coverage limits, required in high-risk zones, slower claims, fewer options |
| Private Flood Insurance | Private insurance companies | Higher coverage, faster claims, more flexible options like temporary housing |
Many homeowners are switching to private flood insurance because it can offer stronger coverage and faster support. If you’re unsure which type fits your situation, now’s the time to compare and make a plan.
Should You Get Homeowners Insurance Anyway?
You’re not legally required to have homeowners insurance in Texas, but if you have a mortgage, your lender will almost always ask for it. Even without a loan, having a policy protects your home, belongings, and finances from life’s unexpected moments.
As a private insurance provider in Houston, TX, Dickey Insurance Solutions helps homeowners across Texas find coverage that fits.
Have questions about what type of coverage you need? Contact us today for a quote or to talk with an agent who knows Texas home insurance inside and out.
