Texas Department of Insurance

What this document is

Texas Department of Insurance - Home insurance guide (consumer guide CB025: coverage types, dwelling vs contents, replacement cost vs actual cash value, deductibles, claims, cancellation and nonrenewal) is a reference published by Texas Department of Insurance (www.tdi.texas.gov). It is one of the Texas documents that insurance license exam questions are written from, including texas property & casualty, texas personal lines, texas claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• Texas Department of Insurance, Home insurance guide, Resolving problems (Ask for an appraisal)

  “The appraisal process is for disputes about the amount of your claim. It isn’t for disputes about whether your policy covers a loss. If you use appraisal, you and the insurance company each hire an appraiser. The two appraisers then choose a third appraiser as an umpire. Your appraiser and the...”

• Texas Department of Insurance, Home insurance guide, How companies pay claims (Repair claims)

  “If you have a replacement cost policy, most companies pay with two checks. You’ll get the first check after the adjuster has looked at your damage. This check will be for the estimated cost of repairs, minus depreciation and your deductible. Depreciation is an amount subtracted for wear and tear or...”

• Texas Department of Insurance, Home insurance guide, Windstorm and hail insurance on the Gulf Coast

  “Don’t wait until the last minute to buy wind and hail insurance. TWIA won’t sell you a policy if there’s a hurricane in the Gulf of Mexico.”

• Texas Department of Insurance, Home insurance guide (Types of home insurance coverages)

  “Other structures coverage pays to repair structures on your property that aren’t attached to your house. This includes detached garages, storage sheds, and fences. Additional living expenses coverage pays if you have to move while your house is being repaired to fix damages your policy covers....”

• Texas Department of Insurance, Home insurance guide (Replacement cost vs. actual cash value coverage)

  “Replacement cost coverage pays to repair or replace your house and personal property at current prices. For example, say you bought a new roof 10 years ago and the current price for a new roof is $10,000. If you have to replace your entire roof after a storm, a replacement cost policy would pay for...”

• Texas Department of Insurance, Home insurance guide (web page stamped "Last updated: 6/1/2026"), exceptions to the claim deadlines

  “There are some exceptions to the deadlines: A company that needs more time can take 45 days to decide whether to pay your claim. It must tell you the reason for the delay. If a company suspects arson, it has 30 days to accept or deny your claim. A surplus lines company has 20 business days to pay...”

• Texas Department of Insurance, Home insurance guide (web page stamped "Last updated: 6/1/2026"), Home insurance claims (mortgage company)

  “The mortgage company may ask you for more information before it releases money to you. For instance, you might need to give the mortgage company a list of the work to be done and cost estimates, information about who’s doing the work, and timelines. After the mortgage company gets the information,...”

• Texas Department of Insurance, Home insurance guide (web page stamped "Last updated: 6/1/2026"), What if I can't find a company willing to insure me?

  “The Texas FAIR Plan Association sells basic home insurance. You can get FAIR Plan coverage if you can’t find a Texas-licensed company to insure you and at least two companies have turned you down.”

• TDI, Home insurance guide, How companies pay claims (Repair claims)

  “If you owe money on your home, the insurance company will make the check for repairs out to both you and your mortgage company.”

• TDI, Home insurance guide, How companies pay claims (Personal property claims)

  “If you have to replace your clothes, furniture, and other personal items, the insurance company will make the check out to you.”

• TDI, Home insurance guide, Resolving problems (appraisal)

  “Your appraiser and the company’s appraiser each estimate the amount of your loss. If the estimates are different, the umpire makes the final decision.”

• TDI, Home insurance guide, Home insurance claims (tips)

  “Make only temporary repairs to protect your house and belongings. For instance, board up broken windows or put a tarp over a damaged roof. Don’t make permanent repairs. The insurance company might deny your claim if you make permanent repairs before it sees the damage.”

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Questions about this source

More Texas sources

• Texas Government Code ch. 2001 -- Administrative Procedure Act, complete (Secs. 2001.001-2001.903)State statute
• Texas Government Code Chapter 2253, Public Work Performance and Payment Bonds, complete: Subchapters A-D, Secs. 2253.001-2253.079State statute
• Tex. Ins. Code ch. 541: Unfair methods of competition and unfair or deceptive acts or practicesState statute
• Tex. Ins. Code ch. 1101: Life insurance required and prohibited policy provisionsState statute
• Tex. Ins. Code ch. 4001: Agent licensing in generalState statute
• Tex. Ins. Code ch. 4005: Conduct, disciplinary actions, and sanctionsState statute
• Tex. Ins. Code ch. 1201: Accident and health insurance policy provisionsState statute
• Texas Insurance Code Chapter 151, Consolidated Insurance Programs, complete: Subchapters A-D, Secs. 151.001-151.151State statute