Texas Homeowners Insurance: What’s Covered and What’s Not? (2025 Guide)

Whether you’re a new homeowner in Texas or reviewing your current policy, understanding what’s actually covered—and what isn’t—can save you from major surprises.

What’s Typically Covered by Texas Homeowners Insurance

Most policies in Texas fall under HO-3 (Special Form) coverage, which includes:

🔥 Dwelling Coverage

  • Damage to your home’s structure (walls, roof, floors, etc.) from:

    • Fire

    • Hail

    • Windstorms

    • Vandalism

    • Theft

    • Sudden water damage (like burst pipes)

🛋 Personal Property

  • Covers furniture, clothing, electronics, etc. if damaged or stolen.

  • Covered even outside the home (e.g. in your car or while traveling).

🧍 Liability Protection

  • Covers legal expenses if someone sues you for injuries or damages on your property.

  • Also applies if your pet injures someone (subject to policy terms).

🏨 Loss of Use / Additional Living Expenses

  • Pays for temporary housing and food costs if your home is unlivable after a covered disaster.

👨‍🔧 Other Structures

  • Covers detached garages, sheds, fences, and other structures on your property.

What’s NOT Covered by Standard Texas Homeowners Insurance

Texas has unique weather risks, and standard policies don’t cover everything:

🌊 Flood Damage

  • NOT covered by standard policies.

  • You’ll need separate flood insurance (available through FEMA or private insurers).

🌪 Windstorm/Hail in Coastal Counties

  • In some Gulf Coast regions, wind/hail damage may be excluded and require a separate policy from TWIA (Texas Windstorm Insurance Association).

🌋 Earthquakes

  • Not covered unless you add earthquake coverage as an endorsement.

💧 Gradual Water Damage

  • Leaks from wear and tear, lack of maintenance, mold, or slow seepage aren’t usually covered.

🐀 Pest Infestations

  • Damage from termites, rats, or insects is considered preventable and not covered.

💼 Business-Related Claims

  • If you work from home or run a business, damage to business equipment may need extra coverage.

📍 Texas-Specific Considerations

  • Due to high storm risks, deductibles for wind/hail are often higher than other types of claims.

  • Replacement Cost vs. Actual Cash Value: Make sure your policy pays replacement cost to fully rebuild—not depreciated value.

  • Some insurers offer custom endorsements for jewelry, electronics, firearms, and more.


💡 Pro Tips for Texas Homeowners

  • Get a home inventory (photos + receipts)

  • Review your coverage limits annually

  • Ask your agent about bundling home + auto to save

  • Look into impact-resistant roofing discounts

  • Consider flood insurance even if you’re not in a high-risk zone

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