Texas flood insurance and earthquake coverage are two perils for which there is no coverage.* You can get coverage for earthquake and flood damage in a separate policy or as an endorsement to your homeowners insurance Texas coverage.
Replacement Cost or Actual Cash Value
Your Texas home policy does not provide coverage for all potential catastrophes that could damage or destroy your home. Earthquake and
There is also no coverage for damage caused by water that seeps into your home from the ground.
You do have coverage for losses related to fire, smoke, lightning, wind storms, hail, explosions, vandalism and theft.
There are different ways to insure your home. Generally you insure both the structure and your personal property. Let's take the structure first.
There are two types of coverage: replacement cost and actual cash value.
Replacement cost coverage is highly recommended for all Texas homeowners. Under replacement cost coverage, the insurance will cover the cost of replacing the part of the structure that is damaged, up to a maximum dollar amount.
Under actual cash value coverage will cover the cost of replacing the damaged structure minus the depreciation. If you have an older home, this maybe the coverage you want. Unless your policy specifically says it provides replacement cost coverage, the coverage is for actual cash value.
Source : www.articlesbase.com/insurance-articles/texas-home-insurance-money-saving-tips-3035788.html