Buying
Compare more than the annual premium. Put the dwelling limit, replacement cost or actual cash value, each deductible in dollars, roof terms, flood coverage and wind coverage on the same worksheet. Then confirm the effective dates and lender requirements before closing.
You have one property and two quotes. Comparing them before your contract deadlines helps identify questions that still need answers. A lower annual premium may come with a smaller dwelling limit, a deductible that requires more cash after a covered loss, or a roof settlement that subtracts depreciation. The premium alone hides those differences.
I help buyers organize affordability and contract timing. Your licensed insurance agent explains policy terms and binds coverage; your lender confirms the requirements for your loan. Get those answers together before choosing a policy.
What should I compare besides the annual premium?
Check that the insurer is licensed and review its complaint record before the premium ends the conversation.
Why the premium level in Houston runs high is a different article: why Houston home insurance is so expensive. Use that page for context. Use this page to finish the two quotes in front of you.
What does a side-by-side comparison look like?
Compare both quotes for the same address. If a real quote leaves a line out, mark that information as not provided. The chart below is a made-up sample so you can see how two policies can differ. It is educational. It is not a form to fill in on this page.
On a phone, swipe or scroll sideways inside the table to read every column.
| Comparison item | Fictional example A | Fictional example B | What to confirm on your real quote |
|---|---|---|---|
| Annual premium example | $3,200 | $2,800 | The premium on each written quote for this address |
| Dwelling coverage | $400,000 | $400,000 | The dwelling limit named on each quote |
| Other covered-loss deductible | $2,500 fixed | $2,500 fixed | The dollar deductible for other covered losses |
| Wind and hail deductible | 1% of this example dwelling limit ($4,000) | 2% of this example dwelling limit ($8,000) | The percent, the dollar amount, and the limit that percent uses |
| Roof settlement | Replacement cost | Actual cash value, subject to depreciation | Whether the roof is replacement cost or actual cash value |
| Personal property settlement | Replacement cost | Replacement cost | Whether belongings are replacement cost or actual cash value |
| Flood | Excluded from this fictional home policy | Excluded from this fictional home policy | Whether flood is excluded and whether a separate flood quote is needed |
| Effective date | Must be confirmed with the agent | Must be confirmed with the agent | The day coverage is actually in force |
In this made-up pair, example B costs $400 less per year, and its wind and hail deductible is $4,000 higher ($8,000 instead of $4,000 on the same $400,000 dwelling limit). A lower premium by itself does not show which policy is better. A real claim still follows that policy’s terms, limits, and deductibles. Your licensed agent confirms how your own quotes apply. This example is not advice about what to buy.
How do I turn a percentage deductible into dollars?
A deductible is the part of a covered loss you pay. The Texas Department of Insurance says a percentage deductible has to be converted from the insured amount the policy states. That amount is not automatically the purchase price. Two quotes can both say 2 percent and still produce different dollars if the dwelling limits differ. Different losses can use different deductibles. Ask which peril uses which deductible, and which limit is the base.
Illustrative example, not an insurance quote: with $400,000 in dwelling coverage, a 1% deductible is $4,000 and a 2% deductible is $8,000. Confirm the applicable percentage and insured amount with your agent. These numbers show the arithmetic; they do not establish which deductible or coverage amount is right for you.
A covered loss does not mean the insurer pays the whole repair. The deductible comes off, the limit caps the payment, and replacement cost or actual cash value changes how the loss is measured.
What is the difference between replacement cost and actual cash value?
The declarations page is the summary of coverages, limits, and deductibles. Replacement cost means the current cost to repair or rebuild. Actual cash value subtracts depreciation for age and wear. A quote that pays the dwelling, your belongings, or the roof at actual cash value can pay less after a covered loss. Ask which basis applies to each of those three. One answer does not stand in for the other two.
What should I ask about the roof?
Roof coverage may be replacement cost or actual cash value. Age and condition can change that part of the quote, and they can change whether a company will offer a policy. An older roof is not automatically covered, and a covered roof loss is not automatically funded as a full new roof.
Ask the agent to answer in writing. Is this roof replacement cost or actual cash value? Do age or condition limit the roof or affect whether the policy is offered? Is the wind and hail deductible different from the deductible for other covered losses? If depreciation applies, how does it change a covered roof repair?
A home inspection is a different report. Typical cost is on Houston home inspection cost. The inspection does not guarantee that an insurer will offer coverage or keep it.
How do I keep flood and wind on their own lines?
Give flood its own row even when both quotes say excluded. Most home policies exclude flood damage. That is the usual policy rule. It is not a statement about your lender. Ask this lender whether this loan requires flood insurance and what proof they will accept.
If you buy a National Flood Insurance Program policy, coverage normally begins 30 days after purchase. Exceptions include a policy bought in connection with making, increasing, extending, or renewing a mortgage. Ask the agent whether your file fits an exception and which day coverage starts. A private flood policy uses its own terms. Do not copy the NFIP waiting period or the NFIP exclusions onto a private policy. An NFIP policy does not cover additional living expenses or temporary housing during repairs. The additional living expense line on the home quote does not automatically fill that gap for a flood.
Wind and hail get their own row too. Policies along the Gulf Coast, and some Harris County policies near Galveston Bay, may exclude wind and hail, so that coverage has to be written separately. That is a location-specific possibility, not a description of every Houston house. Ask whether wind and hail are inside this quote or on another policy, and which deductible applies. Storm prep for the household is a different page, the Houston hurricane prep buyer guide. It is not a wind policy.
The flood zone is not the quote. For the address-level result to hand the agent, use the Houston flood zone map by address. For the zone names in plain language, use the Houston flood zone buyer guide, then come back to these lines.
A CLUE property report lists insurance claims reported on the property for seven years, with the date, the type, and the amount paid. Ask the owner to show you that property report. Do not expect to open someone else’s personal report yourself. CLUE is reported-claims information. It is not a full history of flooding or damage, and it does not show every unreported or uninsured loss.
What should I check before closing?
Finish this with the agent and the lender. Leave any unknown date blank.
- Get declarations, or a quote that lists coverages, limits, and deductibles in that same summary.
- Confirm the license and that you reviewed the complaint record.
- Ask the lender, for this loan, whether flood insurance is required.
- Ask which day the home policy is in force, and which day flood coverage starts if you buy it. A quoted price is not a bound policy. Ask what has to happen before it is.
- If you are replacing an existing policy, do not cancel it until the new policy is in force or you have written confirmation of coverage. Ask what must be written in your name rather than assuming the seller’s policy transfers to you.
- Set those dates beside the option period and closing day in the offer and contract. If the first premium is collected at closing, keep it in the who pays closing costs picture. The deductible is still a separate pile of cash.
- Keep title insurance off this sheet. It is a different policy.
Questions buyers ask next
Is the lower premium the better quote?
Not by itself. The lower number can be a lower limit, a larger deductible, a roof at actual cash value, or flood and wind left off the page. Compare these same details on your actual quotes before you decide.
How should I compare deductible options?
Compare the premium with the dollars you would pay for an applicable covered loss. The fictional $400,000 example shows how percentages become dollars; your own policy may use different limits and deductibles. Ask your agent to compare those trade-offs for the same coverage.
If a loss is covered, does the insurer pay the whole bill?
No. Coverage still runs through the deductible, the limit, and the settlement basis. Ask how each one applies to that kind of loss.
Can I cancel the current policy when the quote arrives?
No. Wait until the new policy is in force or you have written confirmation of coverage. Ask the agent what that confirmation looks like. Do not treat the quote as the policy.
Next steps
Choose after the same lines are filled on both quotes and the lender has said what this loan requires. If the premiums are close but the deductible, the roof basis, the flood line, or the wind line is not, you are looking at different promises. Take the sheet to your insurance agent. If you want a second set of eyes on the option period and the closing day, bring the contract dates to me.
Want the contract dates next to the quotes?
I can help you line up the option period and closing day with what your insurance agent and lender put in writing.
Or call 346-321-4422.
Related reading
Sources
- Texas Department of Insurance, How to shop smart for home insurance.
- Texas Department of Insurance, Home insurance guide.
- Texas Department of Insurance, What to know about deductibles.
- Texas Department of Insurance, Replacement cost or actual cash value.
- Texas Department of Insurance, Insurance and your roof.
- Texas Department of Insurance, How to get a CLUE about claims history.
- NFIP / FloodSmart, Buy a flood insurance policy.
Informational only. Your policy determines coverage, exclusions, deductibles and effective dates. Confirm the details with a licensed insurance agent and the requirements for your loan with your lender.
