Buying a Home Near the Texas Coast? Check the Insurance Cost Before You Close

Buying a home along the Texas Gulf Coast can be exciting, but there’s one expense many buyers don’t investigate early enough: insurance.

Before you make an offer—or at least before your option period ends—it’s a good idea to find out what it will actually cost to insure the property.

Two homes with similar prices just a few miles apart can sometimes have very different insurance costs. Location, wind exposure, flood risk, roof age, construction, prior claims and available insurance companies can all affect what you pay.

Homeowners Insurance May Be Only Part of the Cost

Along the Texas coast, protecting a home may involve more than a standard homeowners policy.

Depending on the property and insurance company, you may need to consider:

• Homeowners insurance
• Windstorm and hail coverage
• Flood insurance

These coverages don’t necessarily come from the same insurance company, so it’s important to look at the total cost of protecting the home, not just the homeowners quote.

The Roof Can Make a Big Difference

Before purchasing a home, find out the age and condition of the roof.

A newer roof may give you more insurance options, while an older roof can limit the companies willing to insure the property or affect the price and coverage available.

Don’t assume that because the current owner has insurance, you’ll automatically be able to obtain the same coverage at a similar price.

Don’t Forget About Wind and Hail Deductibles

The premium isn’t the only number you should compare.

Texas homeowners policies can have percentage-based wind or hail deductibles. On a home insured for several hundred thousand dollars, the difference between deductible options can mean thousands of dollars out of pocket after a covered loss.

Ask your agent to explain the deductible in actual dollars, not just percentages.

Check Flood Insurance Before You Buy

Standard homeowners insurance generally does not cover flooding.

Even if a lender doesn’t require flood insurance, that doesn’t necessarily mean the property has no flood risk. Before closing, it’s worth discussing the property’s flood exposure and getting a flood insurance quote so you can make an informed decision.

Get Insurance Quotes Early

One of the biggest mistakes a homebuyer can make is waiting until a few days before closing to shop for insurance.

By getting quotes earlier, you’ll have time to compare companies, coverage, deductibles and the total annual insurance cost. If the insurance is significantly more expensive than expected, you’ll know before you’re committed to a mortgage payment based on an incomplete picture of the home’s true cost.

Work With a Local Independent Insurance Agency

Insurance along the Texas Gulf Coast isn’t always straightforward. That’s where working with an independent insurance agency can make a difference.

Instead of looking at only one insurance company, an independent agent can help compare available options and explain how homeowners, windstorm and flood coverage work together.

If you’re buying a home along the Texas Gulf Coast, contact us before you close. Give us the property address and basic information about the home, and we’ll help you understand your insurance options and potential costs.

Buying the right house is important. Knowing what it will cost to protect it is important, too.