Which Homeowners Policy Do You Really Need in Texas?

Choosing a Texas homeowners policy?

​Learn the differences between HOA, HOA+, HO3, and HOB forms—and which one might be right for your home in Texas.

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Finding the right home insurance policy in Texas can feel confusing. Insurance companies use both national policy forms and Texas-specific ones like HOA, HOA+, and HOB. Understanding how they differ can help you choose a plan that protects your home and your wallet.
Let’s break down what each policy offers and which fits your specific needs.

Texas Policy Types: From Narrowest to Broadest Coverage

1. HOA (Named Perils / Actual Cash Value)

• Coverage: Only covers the named perils listed in the policy (fire, windstorm, theft, etc.).
• Settlement Type: Actual Cash Value — meaning depreciation is factored in, so you only get what the property is worth at the time of loss.
• Best For: Older homes, lower-cost properties, or owners who want basic protection and accept some risk.
• Limitation: Many fixes, especially in newer homes, may not qualify under named-perils.

2. HOA+ (Expanded Named Perils)

• A step up from basic HOA, HOA+ includes additional coverages such as:
  • Falling objects
  • Weight of ice, snow, or sleet
  • Sudden and accidental discharge or overflow of water
  • Damage from falling trees or limbs
• Settlement: Often replacement cost for structure and optionally for contents.
• Best For: Homeowners want more coverage than basic HOA but don’t need full open-peril protection.

3. HO3 (Open Perils for Dwelling / Named for Contents)

• The most common national policy form.
• Dwelling Coverage: Open Perils — any risk is covered unless it’s specifically excluded.
• Contents: Named perils — your personal belongings are covered only for listed risks.
• Major Exclusions: Flood, earth movement, water backup (unless added), etc.
• Best For: Most homeowners who want broad protection for their building without gaps for sudden damage.

4. HOB (Texas-Specific Open Peril + More)

• Open Perils for the dwelling, plus enhanced water damage protection compared to HO3.
• Covers a wider range of risks including certain water losses that HO3 typically excludes.
• Less common, because many insurers prefer the more standardized HO3 type.
• Best For: Texas homeowners seeking stronger protection against water damage without paying for flood coverage.

How to Choose What’s Right for YouHere are some key considerations:

• Location & Risk: If your home is in a flood-prone area or near trees, water damage and falling-object protection may matter more.
• Home Value & Age: Newer homes or high-value homes often benefit from broader coverage (HO3 or HOB).
• Budget vs. Peace of Mind: HOA is lower cost but higher risk. HO3 and HOB carry higher premiums but reduce gaps.
• Endorsements: You can often supplement coverage with add-ons like water backup, scheduled personal property, or service line coverage.
• Replacement Costs: Make sure your dwelling coverage reflects current construction material and labor costs—not just purchase price.

Final Thoughts
There is no one-size-fits-all homeowners policy—especially in Texas, where both national and state-specific forms coexist. Whether you go with HOA, HOA+, HO3, or HOB depends on your risk tolerance, property features, and budget.
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At Corin Insurance, we view you as family. We’ll help you compare options, assess your home’s needs, and match you with coverage that best balances protection and affordability. Reach out for a policy review today.

Disclaimer
This post is for informational purposes only and should not be considered legal or insurance advice. Policy availability, coverage limits, and terms vary by carrier and location. Always consult a licensed insurance professional before selecting or updating your homeowners policy.