Your lending institution requires you to have homeowners insurance on your property. It protects you financially if your house or property is damaged or destroyed by something under your policy, such as a fire or storm.
The Texas Department of Insurance has a Consumer Bill of Rights for both homeowners and renters to know their rights. Your chosen insurance company will also give you a copy when you begin or renew a policy.
Do I Need Home Insurance in Texas?
You are not required by law to take out homeowners insurance. However, state law requires you do have it if you still owe money, and all lenders will verify your insurance before granting a loan. It is not legally required for those of you who own you own your property outright. However, it is a good idea because it protects both your home and assets from unforeseen damages.