63% of Texas homeowners are carrying less coverage than their home would cost to rebuild.

A homeowners policy typically covers your dwelling structure, personal property, personal liability, and additional living expenses if your home becomes temporarily uninhabitable after a covered loss. Most policies also extend to detached structures such as garages and fences. Coverage details vary by policy, and reviewing your declarations page is the most reliable way to confirm what is included.

Wind and hail are covered perils under many standard Texas homeowners policies. However, some policies carry a separate wind and hail deductible that is calculated as a percentage of your dwelling coverage rather than a flat dollar amount. A 2% deductible on a $400,000 home means $8,000 out of pocket before coverage begins. Many homeowners do not discover this until a claim is filed.

Flood damage is excluded from standard homeowners policies and must be purchased separately through the National Flood Insurance Program or a private flood insurer. This applies across Texas, including properties not located in a designated high-risk flood zone. Many North Texas homeowners who experienced flooding during major storm events discovered this gap at claim time.

Replacement cost is what it would cost to rebuild your home from the ground up at current labor and material prices. This is often very different from market value or purchase price. Replacement cost estimates should be reviewed periodically because labor and material costs change over time. Construction cost increases across Texas in recent years have left many homeowners underinsured without adjusting their dwelling coverage limits.

A wind and hail deductible is a separate deductible that applies specifically to losses caused by wind or hail. Unlike a flat-dollar deductible, it is typically calculated as a percentage of your home's insured dwelling value. As carriers across North Texas shifted from 1% to 2% wind and hail deductibles, many homeowners saw their out-of-pocket exposure double without a clear notification. A coverage review confirms exactly what your deductible is before a storm season.

A personal umbrella policy adds a layer of liability coverage above the limits of your homeowners and auto policies. It is worth considering if you own a home, have a pool or trampoline, own dogs, or have teen drivers in the household. Coverage is typically available in increments starting at one million dollars at a relatively modest annual cost.

Common approaches include bundling home and auto coverage for a multi-policy discount, installing a monitored alarm system, updating your roof, and maintaining a claims-free history. A full coverage review at renewal is a practical way to confirm available discounts are applied and that you are not paying for coverage levels that no longer match your property.

A standard homeowners policy typically provides very limited coverage for business property and does not extend liability protection to business activities. If you operate any type of business from your home, even part-time, a coverage gap may exist. Options include a home-based business endorsement or a separate commercial policy depending on your situation.