What Homeowners Insurance Covers
Homeowners insurance is actually several types of coverage bundled together. It protects the physical structure of your home, your personal belongings inside, your liability if someone is injured on your property, and your additional living expenses if you can't live in your home due to covered damage. Most policies also cover detached structures like garages, sheds, and fences.
Dwelling Coverage
Pays to repair or rebuild your home if it's damaged by covered perils like fire, wind, hail, or lightning. Should equal your home's rebuild cost (not market value).
Other Structures
Covers detached structures on your property: garages, sheds, fences, pools, and barns. Typically 10% of your dwelling coverage.
Personal Property
Protects your belongings—furniture, electronics, clothing, appliances—if they're damaged or stolen. Usually 50-70% of dwelling coverage.
Liability Protection
Covers legal expenses and damages if someone is injured on your property or you damage someone else's property. Usually $100,000-300,000.
Medical Payments to Others
Pays medical bills for guests injured on your property, regardless of fault. Typically $1,000-5,000 per person.
Additional Living Expenses (ALE)
Covers hotel, meals, and other costs if you can't live in your home while it's being repaired. Usually 20% of dwelling coverage.
Wind/Hail Coverage
In Texas, wind and hail are typically covered but may have a separate, higher deductible (often 1-2% of dwelling coverage).
Flood Insurance
Standard homeowners insurance does NOT cover flooding. You need a separate flood policy through NFIP or private carriers. We can help.
Why You Need Homeowners Insurance
If disaster strikes—a fire, a tornado, a burst pipe—could you afford to rebuild your home out of pocket? For most families, the answer is no. Homeowners insurance provides a financial safety net that protects everything you've worked for. Plus, if you have a mortgage, your lender requires it. Even if you own your home outright, going without coverage is a huge financial risk.
Texas-Specific Considerations
Texas homeowners face unique challenges. Hail damage is our #1 claim type—Central Texas sees multiple hail events each year. Wind/hail deductibles are typically higher (1-2% of dwelling coverage) than standard deductibles. Some carriers won't insure older roofs. And flooding is a real risk even outside designated flood zones. Our agents know which carriers handle Texas weather best.
Homeowners Insurance FAQs
How much homeowners insurance do I need?
Your dwelling coverage should equal the cost to rebuild your home (not its market value). This is called replacement cost coverage. We can help you calculate the right amount based on your home's size, construction, and features.
Does homeowners insurance cover flooding in Texas?
No. Standard homeowners insurance does not cover flood damage. You need a separate flood insurance policy. Even if you're not in a flood zone, we recommend flood coverage—25% of flood claims come from low-risk areas.
What's the difference between replacement cost and actual cash value?
Replacement cost pays to replace your belongings with new items. Actual cash value pays the depreciated value (what your stuff is worth today). We recommend replacement cost coverage—the premium difference is small.
Are my belongings covered when I travel?
Yes, typically up to 10% of your personal property coverage protects belongings anywhere in the world. Great for laptops, cameras, and luggage while traveling.
What discounts are available for homeowners insurance?
You can save with bundling (home + auto), new home construction, security systems, smoke detectors, impact-resistant roofing, and being claims-free. New construction homes can save up to 35%.
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