Market & Policy · Insurance Term
Quote (Proposal)
Definition
An insurance quote is an insurer's offer to provide specific coverage, at a stated premium, on stated terms, for a set period. It is not coverage yet — coverage starts only when the quote is accepted and bound.
In Plain English
A quote follows a submission of your property details, values and loss history. It lists the coverages, limits, deductibles, premium, taxes and fees, plus any conditions the insurer needs met before or after binding, such as an inspection or a signed form.
A quote is firmer than a premium indication, but it usually expires on a set date. When you accept it, your agent asks the insurer to bind, and a binder or the policy confirms coverage.
Comparing quotes means comparing more than price. Two quotes with similar premiums can differ on wind deductibles, exclusions, roof valuation and sublimits.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical and simplified: two quotes for a 60-unit apartment complex insured for $6 million come in at $70,000 and $64,000. The cheaper one has a 5% wind and hail deductible ($300,000) and actual cash value on roofs. The other has a 2% deductible ($120,000) and replacement cost. In a hail claim, that is a $180,000 difference in deductible alone.
Why It Matters for Texas Property Owners
Quotes from surplus lines insurers in Texas add a 4.85% premium tax and a small stamping fee, which should be shown separately. On the Texas coast, a property quote may exclude wind, with wind and hail placed separately — sometimes with the Texas Windstorm Insurance Association (TWIA) — so make sure you are comparing complete packages.
What to Watch For
- Check the quote's expiration date and the conditions to bind.
- Line up deductibles, valuation and exclusions side by side, not just premium.
- Confirm taxes, fees and any minimum earned premium are in the total.
- Ask what information was assumed; wrong details can change terms later.
Common Questions
Am I covered once I receive a quote?
No. A quote is an offer. You are covered only after you accept it and your agent confirms coverage is bound, usually with a binder.
Why did my quote change after I gave more details?
Quotes depend on the information submitted. New facts — like roof age, past losses or vacancy — can change price or terms, which is why accurate information up front matters.
Sources
- Texas Insurance Code §225.004 (surplus lines premium tax rate)
- TWIA — eligibility and designated catastrophe area
Last updated October 14, 2026 · Primesure editorial team · How We Write