Maybe your renewal just came in higher again. Maybe you’re closing on a house in three weeks and the lender wants proof of insurance. Or maybe a spring storm rolled through, the neighbors started calling roofers, and you realized you don’t actually know what your policy would pay. A lot of Texas homeowners read their policy for the first time after something goes wrong. This guide is the version you read before.
We’ll walk through what a Texas homeowners policy covers, what it usually leaves out, how roof and deductible terms change what a claim pays, what premiums look like right now, and the few decisions that matter most when you buy or renew. It’s written by our team in Arlington, so the examples lean North Texas: hail, clay soil, creek flooding and hard freezes.
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What does a Texas homeowners policy actually cover?
The short answer: A standard Texas homeowners policy bundles six coverages: your house, other structures on the property, your belongings, extra living costs if you have to move out during covered repairs, personal liability, and medical payments for guests.
What triggers each one depends on your policy form and its exclusions.
A homeowners policy is really several policies stapled together. The Texas Department of Insurance’s home insurance guide describes the core coverages in plain terms, and they map to real situations you might face:
Your house
Pays if your house is damaged or destroyed by something your policy covers, like wind, hail or fire.
Fences, sheds, detached garages
Pays to repair structures on your property that aren’t attached to the house.
Your belongings
Furniture, clothing and electronics that are stolen, damaged or destroyed by a covered event.
A place to stay
Helps pay extra costs, like a rental and meals out, if you have to move out while covered damage is repaired.
If someone blames you
Medical bills, lost wages and other costs for people you’re legally responsible for injuring, plus damage to their property.
Guests who get hurt
Pays medical bills for people hurt on your property, usually regardless of fault, up to a smaller limit.
Something many people don’t realize: not every Texas homeowners policy is built on the same form. For years, Texas had its own state-written forms. The HO-A was the most basic and the HO-C the broadest. According to TDI, insurers began filing and using their own policy forms in 2003, although some still use the older state forms. That means two policies both called “homeowners insurance” can treat the same loss differently.
| Texas form | Similar national form | How it covers |
|---|---|---|
| HO-A | HO 1 | Named perils for the building and contents. Basic. |
| HO-B | HO 3 | “All risk” for the building (anything not excluded), named perils for contents. Broader. |
| HO-C | HO 5 | “All risk” for the building and contents. Broadest. |
You don’t need to memorize form numbers. You need to know whether your house is covered for anything not specifically excluded, or only for a named list of perils, and which exclusions apply. That’s on your policy and your declarations page, and it’s the first thing we look at when we review one.
Own a condo or rent? You need a different policy form. Our guide to HO-6 condo coverage explains where the association’s master policy stops, and our renters insurance guide for Texas tenants covers your belongings and liability when you don’t own the building.
What does Texas home insurance usually not cover?
The short answer: Flooding, continuous or slow leaks, wear and tear, pests, earthquakes and other earth movement, and losses at a vacant home are common exclusions, according to TDI.
Coverage for damage to foundations or slabs is usually something you add with an endorsement, and what it covers varies.
Exclusions aren’t fine print designed to trick you. Insurance is built for sudden, accidental events, not slow problems or maintenance. Still, the gaps surprise people, so here’s how common situations usually play out:
| Situation | Typical treatment |
|---|---|
| Pipe bursts during a hard freeze | Often coveredTDI says many policies pay for damage from a frozen pipe that bursts, though there may be limitations. |
| Slow leak under a sink for months | Usually excludedContinuous leaks and gradual seepage are commonly excluded, including the mold they cause. |
| Rising water from a creek or street | ExcludedFlood needs a separate flood policy (see flood below). |
| Worn-out roof, rotted boards, cracked window seals | ExcludedDamage that happens over time is wear and tear. |
| Soil shifting or earth movement | Usually excludedTDI lists earthquakes and earth movement among common exclusions. |
| Foundation or slab damage | EndorsementTDI lists damage to foundations or slabs among common add-on coverages. What triggers it varies by policy. |
| Mold | DependsGenerally only to repair damage caused by a covered risk. |
| Jewelry, art and other valuables | LimitedPolicies cap what they’ll pay for certain items unless you schedule them. |
| Termites, insects or rodents | ExcludedPest damage is treated as maintenance. |
Water deserves its own mention, because Texas freezes are real. After the February 2021 winter storm, TDI reported that insurers had received 510,772 claims and expected to pay about $11.2 billion in insured Texas losses as of March 31, 2022, with about 85% of claims on residential property policies (TDI winter weather summary). A storm like that is when policy wording matters: a sudden burst pipe and a slow leak can look the same on your kitchen floor, but your policy treats them very differently.
Replacement cost or actual cash value: which one do you have?
The short answer: Replacement cost pays to repair or replace at today’s prices, actual cash value subtracts depreciation, and your policy says which one applies to your roof.
On a roof the difference can be thousands of dollars, and TDI notes that some companies switch older roofs to actual cash value.
This is one of the most misunderstood lines in a Texas home policy. TDI puts it simply: replacement cost coverage “pays to repair or replace your house and personal property at current prices,” while actual cash value “pays replacement cost minus depreciation.” Depreciation is the value an item loses as it ages, and roofs age fast in hail country.
TDI’s own example makes the gap concrete. It uses a $10,000 roof on a house insured for $200,000 with a 2% ($4,000) deductible:
| Roof age | Replacement cost pays | Actual cash value pays |
|---|---|---|
| 5 years old | $6,000 | Less$4,500 |
| 10 years old | $6,000 | Less$3,000 |
| 20 years old | $6,000 | Nothing$0 |
The storm, roof and deductible are identical in each row. Only the settlement terms change. TDI’s roof guidance also warns that “as roofs age, some companies will switch to actual cash value,” so a policy that paid replacement cost when you bought the house may not anymore. Some policies also limit or exclude purely cosmetic hail damage to roofing, such as dents that don’t cause leaks. If your policy mentions cosmetic damage, ask exactly what it means for your roof.
One more replacement-cost trap: your dwelling limit should reflect what it would cost to rebuild your house at today’s labor and material prices. That isn’t the same as the price you paid or what a listing site says it’s worth. Rebuilding costs are what matter when you file a claim, which is why the dwelling limit is one of the first things we check in a renewal review.
How do wind and hail deductibles work in Texas?
The short answer: Many Texas policies carry a separate deductible for wind and hail, and it’s often a percentage of your dwelling limit rather than a flat dollar amount.
Texas law requires your declarations page to show the exact dollar amount of each deductible, so you can see what a hail claim would cost you before it happens.
TDI’s declarations page guide notes that policies may have separate deductibles for damage from wind and hail and for “other perils” like fire and theft. The wind and hail deductible is the one that matters most in North Texas, and it’s often written as a percentage, such as 1%, 2% or more of your dwelling coverage.
Percentages hide real money. TDI’s deductible tips use a 5% deductible on a $150,000 home, which is $7,500. A $6,500 roof claim on that policy pays nothing. The good news: under Texas Insurance Code § 2301.056, a residential property declarations page must state the exact dollar amount of each deductible. So you can see what a hail claim would cost you without doing any math.
- With a 2% wind and hail deductible, you pay the first $7,000. The policy pays about $11,000.
- With a 1% deductible, you pay $3,500. The policy pays about $14,500.
Our rule of thumb: pick the deductible you could pay tomorrow without touching a credit card. If the dollar figure on your declarations page would be a hardship, that’s worth a conversation before storm season, not after.
By clicking Get My Free Quote, I give Robinson Legacy Partners LLC, an Allstate agency, and its licensed agents my prior express written consent, by electronic signature, to contact me with calls and text messages — including marketing calls and texts made using automated technology or an artificial or prerecorded voice — and by email, at the number and email I provided, about my insurance quote and related insurance products and services, even if my number is on a Do Not Call list. My information is never sold or shared with other agencies for their own marketing. Consent is not a condition of purchase; I can call (817) 262-5300 instead. Message frequency varies. Message and data rates may apply. Reply STOP to opt out, HELP for help. I agree to the Privacy Policy and Terms of Use, including the arbitration clause and E-SIGN consent.
How much does home insurance cost in Texas?
The short answer: TDI reports the average Texas homeowners premium was $3,291 in 2024, with a preliminary figure of $3,506 for 2025.
Those are statewide averages across all homeowners policies, not a quote. Your price depends on your home, your coverage choices and where you live.
According to TDI’s Texas homeowners insurance market overview, which draws on the Texas Statistical Plan for Residential Risks, the average annual homeowners premium was $3,291 in 2024. You’ll also see a different figure: the NAIC’s national report, summarized by the Insurance Information Institute, put Texas’s average at $2,397 for 2022, third highest in the country, against a U.S. average of $1,569. The two numbers aren’t in conflict. They cover different years, and the NAIC figure is based on HO-3 style policies only. Either way, Texas is one of the most expensive states to insure a home.
Averages tell you about the market, not about your house. These are the things that tend to move an individual premium:
- Rebuild cost and dwelling limit. A bigger or more expensive house to rebuild costs more to insure.
- Roof age, material and settlement terms. Newer roofs and impact-resistant materials can affect eligibility and price. So can the choice between replacement cost and actual cash value.
- Deductibles, especially wind and hail. A higher deductible generally lowers the premium and raises what you pay at claim time.
- Location and weather exposure. Hail, wind and fire-protection ratings vary by area.
- Claims history and the home’s age and updates. Newer wiring, plumbing and HVAC can matter.
- Protective devices and bundling. Monitored alarms, and insuring your home and cars together, may lower what you pay. Discounts and eligibility vary. Our guide to Texas car insurance covers the auto side.
Do Texas homeowners need separate flood insurance?
The short answer: Standard homeowners policies don’t cover flood, so flood coverage is a separate policy, most often through the National Flood Insurance Program (NFIP).
NFIP coverage generally takes effect 30 days after purchase, so it has to be in place before the forecast turns.
FloodSmart, FEMA’s NFIP site, is blunt: most homeowners and renters policies do not cover flood damage. A few specifics worth knowing:
- Waiting period. NFIP coverage generally starts 30 days after purchase. There are exceptions, such as a policy bought in connection with a mortgage.
- Limits. NFIP building coverage goes up to $250,000 and contents coverage up to $100,000 for a home (FloodSmart policy terms).
- Low-risk doesn’t mean no-risk. FEMA reports that nearly one-third of NFIP claims from 2014 to 2024 came from outside high-risk flood areas (FloodSmart flood risk).
In the Metroplex, flood risk isn’t just about rivers. Flash flooding along creeks, drainage channels and low-water crossings can put water in houses that never felt like “flood zone” homes. Look up your address on FEMA’s Flood Map Service Center, and read our flood insurance page for how we help Texas homeowners add NFIP coverage.
What are your rights if an insurer cancels or won’t renew your policy?
The short answer: A Texas insurer generally must give you 60 days’ notice before it non-renews a homeowners policy bought or renewed on or after January 1, 2024, and 10 days’ notice before it cancels one.
State law also limits the reasons it can cancel.
Non-renewal and cancellation are different. A non-renewal means the company won’t offer you another term when this one ends. A cancellation ends the policy mid-term. According to TDI’s cancellation and non-renewal guide:
- Non-renewal: 60 days’ notice for policies bought or renewed on or after January 1, 2024. For policies bought or renewed in 2023 or earlier, the notice was 30 days. The change came from House Bill 1900 (2023), which amended Texas Insurance Code § 551.105.
- Cancellation: 10 days’ notice. Texas Insurance Code § 551.104 limits the reasons an insurer can cancel a homeowners policy, such as nonpayment of premium, a fraudulent claim, or an increase in hazard within your control. In a new policy’s first 60 days, it also allows cancellation for a few extra reasons, such as a hazard that wasn’t disclosed on the application or a required inspection the insurer doesn’t accept.
If you get a non-renewal notice, don’t sit on it. Sixty days goes fast when you need inspections, roof documentation or a new policy lined up before closing on a refinance. If a home truly can’t be insured in the regular market, the Texas FAIR Plan Association is a statewide coverage option of last resort. According to TDI, you can qualify if you can’t find a Texas-licensed company to insure you and at least two companies have turned you down (see the FAIR Plan’s own site). (You may also hear about TWIA, the Texas Windstorm Insurance Association. It serves designated coastal counties and part of Harris County, not Dallas–Fort Worth.)
For a question or complaint about an insurer, TDI’s consumer help line is 800-252-3439.
How do you choose the right coverage before you buy or renew?
The short answer: Set your dwelling limit to what it would cost to rebuild, know how your roof is settled, turn every deductible into dollars, decide on flood, and add the endorsements your house actually needs.
Then put a review on the calendar every year before renewal.
Texas law doesn’t require homeowners insurance. TDI notes, though, that if you still owe money on your home, your lender will require it. And even with a paid-off house, going without means you’d personally pay to rebuild and personally defend a liability claim. Here’s the order we work through with clients:
- Set the dwelling limit to rebuild cost
Base it on what it would cost to rebuild at today’s labor and material prices, not the purchase price or market value. Revisit it after renovations or additions.
- Find your roof settlement terms
Check whether your roof is covered at replacement cost or actual cash value, and whether any cosmetic-damage limits apply. If your roof is aging, ask when the terms could change.
- Convert every deductible to dollars
Find the all-other-perils deductible and the wind and hail deductible on your declarations page. Keep at least the wind and hail amount in savings, or choose a deductible you could cover from savings.
- Close the gaps your house actually has
Slab foundation? Ask whether a foundation endorsement is available and exactly what causes it covers. Jewelry, art or collectibles? Ask about scheduling them. Home office or a detached workshop? Make sure the right limits apply.
- Decide on flood before you need it
Check your address on FEMA’s flood map and remember the NFIP’s usual 30-day wait. Flood coverage bought after the rain starts is usually too late.
- Ask about discounts and bundling
Insuring your home and cars together, and features like monitored alarms, may lower what you pay. Eligibility and amounts vary, so ask which ones apply to your house.
- Put a yearly review on the calendar
Roofs age, rebuild costs change, and families add cars, teens and valuables. A 15-minute review before each renewal catches problems while they’re still easy to fix.
Two related decisions often come up in the same review. If you move out and keep the house as a rental, the policy usually needs to change, which our Texas landlord insurance guide walks through. And if your family depends on your income to pay the mortgage, that’s a life insurance question, covered in our Texas life insurance guide. For a whole-household checklist, see our coverage-gap review guide.
The bottom line
A Texas homeowners policy covers a lot: your house, your belongings, your liability and a place to stay after a covered loss. But the details decide what a claim actually pays. The things that matter most here are how your roof is settled, your wind and hail deductible in dollars, whether your dwelling limit matches rebuild cost, and the gaps a standard policy leaves open, especially flood and earth movement. Premiums in Texas are high, which makes it even more important that the coverage you’re paying for works when a storm comes through.
If you’d like a second set of eyes, send us your ZIP below or call (817) 262-5300. We’ll put your deductibles in dollars, check how your roof and dwelling are settled, flag gaps like flood and foundation coverage, and quote Allstate coverage that fits your house. Our team helps in English, Spanish, Arabic, Hindi, Punjabi, Urdu and Coptic, Monday through Friday from 8:30 to 5.
By clicking Get My Free Quote, I give Robinson Legacy Partners LLC, an Allstate agency, and its licensed agents my prior express written consent, by electronic signature, to contact me with calls and text messages — including marketing calls and texts made using automated technology or an artificial or prerecorded voice — and by email, at the number and email I provided, about my insurance quote and related insurance products and services, even if my number is on a Do Not Call list. My information is never sold or shared with other agencies for their own marketing. Consent is not a condition of purchase; I can call (817) 262-5300 instead. Message frequency varies. Message and data rates may apply. Reply STOP to opt out, HELP for help. I agree to the Privacy Policy and Terms of Use, including the arbitration clause and E-SIGN consent.
Texas home insurance FAQ
Is homeowners insurance required in Texas?
No Texas law requires homeowners insurance. But if you still owe money on your home, your mortgage lender will require it, and it will usually require proof of coverage before closing and at every renewal. Even on a paid-off home, going without insurance means you would personally pay to rebuild after a fire or major storm, replace your belongings, and cover a liability claim if someone is hurt on your property. A homeowners policy helps protect you from the financial hit of a fire, a windstorm or a lawsuit.
What does a standard Texas homeowners policy cover?
A standard policy combines several coverages: the dwelling (your house), other structures such as fences and detached garages, personal property, additional living expenses if you have to move out during covered repairs, personal liability, and medical payments for guests hurt on your property. Common exclusions include flood, continuous or gradual leaks, wear and tear, pests, and earthquakes and other earth movement. Coverage for damage to foundations or slabs is usually available only as an endorsement. Texas insurers can use their own policy forms, so the exact coverage depends on your policy and its declarations page.
How does a percentage wind and hail deductible work?
A percentage deductible is figured as a share of your dwelling coverage limit, not a flat dollar amount. For example, a 2% wind and hail deductible on a home insured for $350,000 means you pay the first $7,000 of a covered wind or hail claim. Many Texas policies have a separate deductible for wind and hail and another for all other perils. Texas law requires your declarations page to show the exact dollar amount of each deductible, so check it before storm season and make sure you could cover that amount.
Does Texas homeowners insurance cover flooding?
No. Standard homeowners policies do not cover flood damage, meaning water that rises from outside such as an overflowing creek or flooded street. Flood coverage is a separate policy, most often through the National Flood Insurance Program, which offers up to $250,000 of building coverage and $100,000 of contents coverage for a home. NFIP policies generally take effect 30 days after purchase, with some exceptions, so the time to buy is before a storm is in the forecast. FEMA reports nearly one-third of NFIP claims from 2014 to 2024 came from outside high-risk flood areas.
How much notice must an insurer give before non-renewing a Texas home policy?
For homeowners policies bought or renewed on or after January 1, 2024, a Texas insurer generally must give you at least 60 days’ notice before it non-renews your policy, according to the Texas Department of Insurance. Policies bought or renewed in 2023 or earlier had a 30-day notice requirement. A mid-term cancellation requires 10 days’ notice, and state law limits the reasons an insurer can cancel. If you receive a notice, call your agent right away so there’s time to line up coverage, and call TDI’s help line at 800-252-3439 with questions about your rights.
Last reviewed by the Robinson Legacy Partners team on .
