Insurance companies may sell several types of policies in Texas, each with a different level of coverage. Three of the policy forms sold in Texas – the HO-A, HO-B, and HO-C – are standardized. This means the policy language and coverages provided by these policies are the same, regardless of the company writing the policy. Although an HO-B policy written by one company will be exactly the same as an HO-B policy written by another company, the two companies may charge different rates.

Companies may offer alternative policy forms, if approved in advance by the state’s commissioner of insurance. These policies are not standardized and usually provide varying coverages. Read your policy carefully to know exactly what coverages are included.

Some companies may sell more than one policy form but may offer only one form to customers. If a company offers you a policy with less coverage than you’d like, ask if other policy forms are available. You may also be able to buy additional coverage by adding endorsements to your base policy.

Following is a brief description of the types of policies sold in Texas:

HO-A
HO-A policies provide extremely limited actual cash value coverage of your home and its contents. Only the types of damage specifically listed in the policy are covered.

HO-A amended policies provide more extensive coverage than the base HO-A policy but less coverage than an HO-B. For instance, HO-A amended policies may include replacement cost coverage and coverage of damage from sudden and accidental water discharges. Neither of these coverages is included in the base HO-A policy. Coverage provided by HO-A amended policies vary by company.

HO-B
HO-B policies provide replacement cost coverage for most types of damage, except those specifically excluded in the policy. Generally, HO-B policies provide the most coverage for the price, but some companies do not offer the HO-B policy.

HO-C
HO-C policies provide the most extensive coverage, but they are more expensive than other types of policies.

Approved alternative policies offer varying levels of coverage. Companies can sell alternative policies only if the policy form is approved in advance by the Commissioner of Insurance. Coverage may differ considerably from one company to another.