We warned you insurance companies may start leaving Texas. Now it’s happened. The large insurance company Progressive says it will stop writing new policies in Texas. This will impact people shopping for new policies (not current customers). But we already know finding affordable homeowner’s insurance in Texas is not easy.
Leash Yu with Yu Insurance Agency joined Investigator Amy Davis for an episode of Ask Amy to answer all of your home insurance questions. There are several options if you are having trouble finding a company to insure your home.
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Forced Place Insurance
Lu explains many lenders have what is called forced place insurance. If you can’t find coverage here is what to do:
- Call your mortgage lender and tell them you can’t find insurance
- They will activate forced place insurance
- Only covers collateral on the house (belongings not covered, liability not covered)
- Very expensive
Forced place insurance cost is usually added to the borrower’s monthly payment. This could add stress to someone who is already having a hard time making monthly loan payments.
Texas FAIR Plan Association
The Texas FAIR Plan Association (FAIR Plan) offers home insurance policies to those who are unable to get insurance through regular insurance companies.
The FAIR Plan gives limited coverage for one- and two-family homes, townhouses, and condominiums.
To be able to get FAIR Plan coverage, you must have:
- Been told by at least two insurance companies that they will not give you coverage.
- Not gotten an offer for the same level of coverage from any insurance company.
Find other eligibility requirements here.
TFPA does not sell policies directly to consumers. To obtain coverage, you will need to work with a Texas-licensed insurance agent who is registered with us (find one here).
Voluntary Inspection Program
If you can’t find an insurance company that will insure your home, you can try to get a “certificate of insurability.” If you have a certificate, an insurance company can´t refuse to sell or renew a policy because of your home’s condition unless: (1) the insurance company reinspects it and (2) describes the issues in writing.
You do have to pay for a Voluntary Inspection Program inspector:
- The 2024 inspection fees are limited to $150.87. If you need a follow-up inspection to verify corrections of problems identified the first time around, you will need to pay an additional $75.42 along with potential charges for gas and mileage.
Learn more about the Voluntary Inspection Program.
Here is related Ask Amy content that may help you out.
