Understanding Insurance Policy Changes When Moving Within Texas

Moving to a new state can be a stressful process, and it's important to understand how your insurance might be impacted. In most cases, you will need to change your insurance when moving to Texas, as insurance agents are typically licensed only in a single state, and each state has different laws and requirements for insurance coverage. For example, Texas requires drivers to have a minimum amount of liability coverage, which pays to repair the other driver's car if you caused an accident.

If you're moving out of state, it's a good idea to check with your current insurance provider to see if they offer coverage in Texas. If they do, you may be able to preserve any loyalty discounts you've accrued. However, even if you stay with the same company, you will likely need a new policy that complies with Texas's requirements and regulations. Your rates may also change due to differences in crime rates, traffic, population, and the number of uninsured drivers in your new area.

In addition to car insurance, you may also need to consider changing your health insurance, home or renters insurance, and even your life insurance policy to ensure you have the coverage you need in your new state.

Car insurance

If you're moving to Texas, you'll need to get a new car insurance policy. Even if you're staying with the same insurance company, they will need to issue a new policy that complies with Texas's requirements and regulations. Texas has different laws about insurance coverage, and insurance agents are typically licensed only in a single state.

You'll have 30 days from the time you arrive in Texas to register your vehicle. You'll also need to get a new driver's license within the first month or two. You can do this at the Texas Department of Motor Vehicles (TxDMV).

Your insurance rates will probably change when you move to Texas. This is because each state requires different levels of coverage. Your rates are also affected by a range of factors, including accident rates and crime in your new neighbourhood.

• Contact your current insurance agent or company: Verify whether your current company offers auto insurance in Texas. If they don't, ask friends or family in Texas what insurance company they use. It's best to let your insurance company know when you plan to relocate. Once you know your moving date and new address, notify your insurer immediately.
• Learn about the insurance requirements in Texas: Insurance laws and requirements vary by state. Your new policy may include additional coverages that you didn't have before. Texas requires drivers to have a minimum amount of liability coverage. You might also need to invest in more than the minimum coverage.
• Buy a new auto insurance policy: Get quotes from at least three different insurance companies before deciding. You can also get recommendations from friends and family in Texas. Once you've chosen a company, purchase a policy and make your first payment.
• Cancel your old policy: Do not cancel your old policy until your new policy is in place. Your old insurance company will cancel your old policy once they issue your new one.
• Register your vehicle: Once you have insurance coverage in Texas, you can visit the DMV to obtain a new vehicle registration and a new license plate. You will need to provide your driver's license, the title to your vehicle, and proof of insurance. You will also need to show proof of residence and proof of identity.
• Obtain a new driver's license: In most states, you can get a new driver's license when you register your vehicle. In some states, you may have to go to a different location to be photographed.

Health insurance

If you move to a different state, you will likely need to change your health insurance plan. This is because most health insurance plans are tied to a specific state. However, there are some exceptions. For example, if you work for a large employer with business locations across the country, your coverage may remain unchanged. Similarly, if your employer transfers you to another state, you will likely stay on their sponsored plan, providing it has a complete network in the new city.

If you have employer-sponsored insurance, your employer might find you a new, accommodating plan if your current plan doesn't have a network in your new state. If you are leaving your job and your current insurance ends, you can extend your coverage through the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). This will allow you to get coverage extended for another 18 to 36 months, which could tide you over in your new state. However, under COBRA coverage, you pay the full cost of premiums.

If you buy your health insurance in the individual market, you will need to purchase a new plan. Individual market coverage is guaranteed-issue thanks to Obamacare (the Affordable Care Act), but it is only available for purchase during open enrollment and during special enrollment periods triggered by qualifying events. Moving to an area where different health plans are available is a qualifying event, as long as you already had coverage in your prior location. You will have a 60-day enrollment window during which you can pick a new plan.

If you move within the same state, your coverage options and savings may change based on your new address. It is important to update your application to report your change of address so that you can be notified if you need to pick a new plan.

Home or renters insurance

If you're moving to Texas, you'll need to get a new home or renters insurance policy. This is because insurance policies are issued at the state level, and each state has different laws and requirements for insurance coverage.

Home Insurance in Texas

Home insurance is not required by law in Texas. However, if you still owe money on your home, your lender will require you to have it. Even if it's not required, home insurance is a good idea because it helps protect your home and other assets.

Home insurance in Texas typically includes six types of coverage:

• Dwelling coverage: Pays for repairs or reconstruction if your house is damaged or destroyed.
• Personal property coverage: Covers the cost of repairing or replacing furniture, clothing, and other personal belongings that are stolen, damaged, or destroyed.
• Other structures coverage: Pays for repairs to structures on your property that aren't attached to your house, such as detached garages, storage sheds, and fences.
• Additional living expenses coverage: Covers rent, food, and other costs if you have to move out temporarily while your house is being repaired due to covered damages.
• Personal liability coverage: Pays for medical bills, lost wages, and other costs if someone is injured on your property and you are found liable. It also covers legal costs if you are sued due to an accident.
• Medical payments coverage: Pays the medical bills of people injured on your property, including some injuries that occur away from your home, such as a dog bite in a park.

Renters Insurance in Texas

Renters insurance is also not required by Texas law, but your landlord may require it as part of your rental agreement. It's a good idea to have renters insurance because it covers your personal belongings, which are not covered by your landlord's insurance. The average cost of renters insurance in Texas is $173 per year, but this can vary depending on factors such as location and the amount of coverage you choose.

Renters insurance in Texas typically includes three types of coverage:

• Personal property coverage: Covers your belongings, even items stolen from your car or while travelling.
• Additional living expenses: Pays for extra costs like food and rental if you have to move out temporarily due to covered losses.
• Personal liability: Protects you if someone is injured in your home and covers legal costs if you are sued.

Flood insurance

Texas is susceptible to flooding due to its geographic location and flat topography. The southeastern coast of Texas is a magnet for hurricanes, and its other geographic sub-regions are prone to flash floods and rising rivers. Therefore, the entire state of Texas is considered a flood zone, albeit with differing risk levels.

There are two main forms of flood insurance coverage: building coverage and contents coverage. Building coverage helps you rebuild the physical aspects of your home's structure in the event of a flood, including systems such as your A/C unit, built-in appliances, electrical systems, plumbing, and more. Contents coverage helps replace the things inside your home, such as personal belongings, electronics, furniture, and other possessions.

Cost of Flood Insurance in Texas

The cost of flood insurance in Texas depends on several factors, including the flood zone, the elevation of your home, the amount of coverage selected, and the deductible. The average flood insurance premium in Texas is around $500 to $700 per year, but it can range from as low as $119 in low-risk areas to over $1,000 in high-risk areas.

How to Purchase Flood Insurance in Texas

There are two main options for purchasing flood insurance in Texas: the National Flood Insurance Program (NFIP) and private flood insurance. The NFIP is a government-run program that offers flood insurance with dwelling coverage of up to $250,000 and personal property coverage of up to $100,000. Private flood insurance is available through standard insurance providers and may offer higher coverage limits and more flexible policy features.

When to Purchase Flood Insurance

It is recommended to be proactive when considering flood insurance, as most flood insurance policies have a 30-day waiting period before the coverage becomes effective. Additionally, some insurance carriers may put a moratorium on purchasing flood insurance policies when a natural disaster is imminent. Therefore, it is best to purchase flood insurance before a storm is on the horizon to ensure you are prepared for any potential financial impact of flood damage.

Windstorm insurance

If you're moving to Texas, it's important to know that windstorm insurance is a separate policy from your standard homeowner's insurance. Windstorm insurance covers damage to your home and belongings caused by wind or hail, which are common occurrences during tropical storms or hurricanes. While it is not required by Texas state law, it is essential for those living in high-risk areas, especially along the coast.

Here's what you need to know about windstorm insurance in Texas:

Eligibility and Requirements:

To be eligible for windstorm insurance in Texas, you must live in one of the designated high-risk counties, which include coastal areas prone to hurricanes and strong winds. These counties include Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris (east of Highway 146), Jefferson, Kenedy, Kleberg, Nueces, Refugio, San Patricio, and Willacy.

Additionally, to qualify for windstorm insurance through the Texas Windstorm Insurance Association (TWIA), you must have been denied coverage by at least one insurer and live in a home certified by the Texas Department of Insurance (TDI) as windstorm compliant. You may also need to purchase separate flood insurance if you live in a high-risk flood zone.

Cost of Windstorm Insurance in Texas:

The cost of windstorm insurance varies depending on several factors, including the age and value of your home, its location in relation to the coast, and your credit score. On average, a windstorm insurance policy from TWIA costs around $1,600 to $2,000 per year. However, the cost can be higher or lower depending on your specific circumstances.

How to Get Windstorm Insurance in Texas:

You can purchase windstorm insurance through a specialty wind-only insurer or the TWIA. TWIA policies are sold by private insurance companies, and you can use their website to find an agent who sells these policies. It's important to note that windstorm insurance cannot be purchased if there is an active storm in the Gulf of Mexico, so don't wait until the last minute to buy coverage.

What Windstorm Insurance Covers:

Frequently asked questions