Education Hub/Homeowners Insurance
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Homeowners Insurance

What you're required to have, what's actually covered, and what most people forget to get.

Standard Homeowners Insurance (HO-3)

The HO-3 is the most common homeowners policy. It covers the structure of your home on an open-peril basis (covers all risks except those explicitly excluded) and your personal property on a named-peril basis (covers only listed risks).

  • Dwelling coverage: rebuilding cost if the home is damaged or destroyed
  • Other structures: detached garages, fences (usually 10% of dwelling)
  • Personal property: furniture, electronics, clothing
  • Loss of use: hotel and living expenses if home is uninhabitable
  • Liability: covers injuries that occur on your property
  • Medical payments: covers minor injuries to guests regardless of fault

What Standard HO-3 Does NOT Cover

This is the part most buyers don't read until they have a claim. Standard homeowners insurance excludes several major risks.

  • Flooding (requires a separate flood insurance policy)
  • Earthquakes
  • Sewer or drain backup (often available as a rider)
  • Mold (unless from a covered water event)
  • Pest damage (termites, rodents)
  • Normal wear and tear
  • Foundation movement (in some policies)

Key point: Many Texas homeowners learn the hard way that standard policies don't cover flooding. Hurricane Harvey flooded ~200,000 homes — the majority were uninsured for flood.

Flood Insurance

Flood insurance is a separate policy, usually through the National Flood Insurance Program (NFIP) or private insurers. If your home is in a FEMA-designated Special Flood Hazard Area (SFHA), your lender will require it. But even outside those zones, flooding happens.

  • NFIP maximum coverage: $250,000 for structure, $100,000 for contents
  • Private flood insurance often provides higher limits
  • Average NFIP premium: $700–$900/year, though can be much higher in high-risk zones
  • 30-day waiting period before coverage takes effect (plan ahead)
  • Even in Zone X (low risk), 20–25% of flood claims come from outside high-risk zones

Windstorm & Hail Coverage

In most of Texas, windstorm and hail are included in the standard HO-3 policy. However, in the Gulf Coast counties designated by TDI (Texas Department of Insurance), windstorm coverage must be purchased separately through the Texas Windstorm Insurance Association (TWIA).

  • TWIA coverage is required for properties in the 14 Gulf Coast counties
  • Premiums can be significantly higher in coastal areas
  • Hail is the #1 cause of homeowners insurance claims in Texas
  • Some insurers are pulling out of Texas or increasing rates due to hail losses

HOA Insurance vs. Individual Coverage

If you're buying a condo or a home in an HOA with shared structures, understanding what the HOA's master policy covers is critical.

  • HOA master policies typically cover common areas and building exteriors
  • "Bare walls in" coverage: you're responsible for everything inside your unit
  • "All-in" coverage: HOA covers fixtures and sometimes improvements
  • You still need an HO-6 (condo) policy for your personal property and improvements
  • Always request a copy of the HOA master policy before closing

How Much Does It Cost?

Texas homeowners insurance is among the most expensive in the nation due to hail, wind, and weather risk.

  • Average Texas homeowners insurance: $3,500–$5,000+/year (significantly above the national average)
  • Coastal properties and older homes cost more
  • New construction often qualifies for lower rates
  • Raising your deductible from $1,000 to $2,500 can reduce premiums 10–15%
  • Bundling auto and home with the same insurer typically saves 5–10%

Key point: Get insurance quotes before you close — not after. In some areas of Texas, you may struggle to find coverage or the cost may change your affordability calculation.

Helpful Links & Where to Apply

Official and third-party resources for research and applications — provided for your convenience, not as endorsements. Confirm current terms directly with each provider, and reach out to me anytime for a trusted referral.

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