Table of Contents
- Texas Homeowners Insurance: The Standard HO-A Policy Explained
- The 6 Core Coverages on Every Texas Homeowners Policy
- Replacement Cost vs Actual Cash Value: Which Payout Do You Get?
- Common Texas Homeowners Insurance Exclusions You Must Know
- Texas-Specific Endorsements Worth Adding to Your Policy
- How to File a Home Insurance Claim in Texas: Step-by-Step
- What Matters Most When Choosing Your Coverage
- Frequently Asked Questions
Last Updated: September 6, 2026
Texas Homeowners Insurance: The Standard HO-A Policy Explained
Most Texas homeowners policies are HO-A forms, the state’s equivalent of the national HO-3 policy. This guide from Glenn Davis Insurance breaks down standard coverages, common gaps, and endorsements worth considering given Texas weather.
The HO-A policy is a named-perils contract for your dwelling and an open-perils contract for your personal property.
Because Texas is not a coastal state under the National Flood Insurance Program’s mandatory purchase rules, many homeowners assume flood damage is covered. It is not.
The 6 Core Coverages on Every Texas Homeowners Policy
Every standard Texas homeowners policy bundles six distinct coverage types under one premium, each with its own limits and rules.
Dwelling Protection (Coverage A) and Other Structures (Coverage B)
Coverage A pays to repair or rebuild your home’s structure, including walls, roof, and attached structures like a garage (iii.org). Coverage B extends to detached structures such as fences, sheds, and guest houses, typically at a percentage of your dwelling limit.
A common mistake is setting Coverage A based on market value rather than rebuilding cost, since market value includes land, which insurance never covers.
Personal Property, Loss of Use, Liability, and Medical Payments
Coverage C protects your belongings, from furniture to electronics, usually at 50-70 percent of your dwelling limit. Coverage D, also called loss of use, pays for additional living expenses if a covered peril makes your home uninhabitable.
Coverage E provides personal liability protection if someone is injured on your property or you accidentally damage someone else’s property. Coverage F pays medical bills for guests injured on your property, regardless of fault, up to your policy’s limit.
Replacement Cost vs Actual Cash Value: Which Payout Do You Get?
The difference between replacement cost and actual cash value determines your claim payout and is the single most consequential choice in your policy.
Replacement cost coverage pays to rebuild or replace your damaged property at today’s prices, without deducting for depreciation. Actual cash value subtracts depreciation.
Most standard policies include replacement cost for your dwelling but may default to actual cash value for personal property unless you elect otherwise.
The table below summarizes the practical impact of each valuation method:
| Valuation Method | How Payout Is Calculated | Best For | Typical Result After a Claim |
|---|---|---|---|
| Replacement Cost | Current cost to rebuild or replace | Dwelling, newer belongings | Full rebuild or replacement |
| Actual Cash Value | Replacement cost minus depreciation | Older items, budget policies | Lower payout, out-of-pocket gap |
Choosing actual cash value to save on premium can leave you thousands of dollars short when you need to replace a roof or rebuild after a fire. The depreciation deduction on a 15-year-old roof is substantial.
Common Texas Homeowners Insurance Exclusions You Must Know
Homeowners insurance exclusions are the fine print that turns a covered loss into an out-of-pocket expense. Every HO-A policy excludes specific perils.
Standard exclusions include flood damage, earthquake damage, and damage from neglect or lack of maintenance. Mold damage is typically excluded unless it results from a covered peril like a sudden pipe burst, and even then, coverage is often limited.
Flood and Foundation Damage: The Two Biggest Gaps
Flood damage is excluded from every standard homeowners policy, and foundation damage from soil movement or settling is also excluded. These two gaps are particularly significant in Texas, where heavy rains and expansive clay soils create recurring risks.
Flood insurance is available through the National Flood Insurance Program, administered by FEMA, and is worth considering even outside designated flood zones.
Foundation damage from soil movement requires a separate endorsement or a specialized policy, as standard insurers view it as a maintenance issue rather than a sudden, accidental loss. The Texas Department of Insurance guide on homeowners coverage outlines these exclusions and helps homeowners understand what their policy does and does not cover.
Texas-Specific Endorsements Worth Adding to Your Policy
A standard HO-A policy in Texas is a starting point, not a finish line. The state’s geology and weather create risks the base policy excludes or severely limits. The endorsements below are the ones Texas homeowners most commonly need.
Foundation and Soil Movement Coverage
Texas’s expansive clay soils swell when wet and shrink during drought, causing foundations to shift and settle. Standard HO-A policies exclude damage from “earth movement,” including soil shrinkage and settling. Foundation repairs routinely run from $10,000 to $30,000 or more and are almost never covered without a specific endorsement.
A foundation endorsement amends the policy to cover loss from earth movement under your home, typically adding 5 to 10 percent to your annual premium. Insurers usually require proof the foundation was in good condition when the policy was issued and will not cover gradual settling over years.
Before buying a foundation endorsement, ask your agent whether the carrier requires a structural inspection or a soil report. Some carriers will not issue this coverage on homes with existing foundation issues, and others will require a waiting period before coverage takes effect.
Mold Remediation Coverage
Standard policies exclude mold unless it results from a covered peril like a sudden pipe burst, and even then coverage is often capped, sometimes as little as $10,000. In Texas’s humid climate, mold spreads quickly after water intrusion, and remediation costs can easily exceed those caps.
A mold endorsement increases the limit for mold remediation and may extend coverage to mold that develops over time from humidity or ventilation issues. The premium increase is modest, but carriers will scrutinize your home’s ventilation and plumbing history before adding it.
Water Backup and Sewer Drain Coverage
Water backup coverage is one of the most frequently recommended endorsements in Texas. Intense storms overwhelm municipal drainage systems, and sewer lines back up through floor drains. The standard HO-A policy excludes this damage, it is not “flood” under the National Flood Insurance Program, nor a covered peril under the base contract.
This endorsement typically adds $5,000 to $25,000 in coverage for damage caused by water that backs up through sewers, drains, or sump pumps. It is a relatively inexpensive addition, often $50 to $150 per year.
Windstorm and Hail Considerations for Coastal Counties
Most of Texas includes windstorm and hail as covered perils in the standard HO-A policy. However, homeowners in the 14 coastal counties that fall within the Texas Windstorm Insurance Association (TWIA) designated catastrophe area may find that private carriers exclude windstorm coverage entirely. In those areas, you may need a separate windstorm policy through TWIA, which is the state-created insurer of last resort.
TWIA policies are more expensive than private market wind coverage and have different limits and deductibles. Your independent agent can explain whether you need one and how it coordinates with your primary policy.
How to Read Your Endorsement Page
When you add endorsements, your insurer issues an endorsement page amending your policy. Read it carefully, it specifies the exact peril, coverage limit, deductible, and any conditions or exclusions. Most are narrowly drafted with their own fine print.
For example, a foundation endorsement may cover soil movement but exclude damage to swimming pools, driveways, or retaining walls. A mold endorsement may cover remediation but not the cost of replacing the moisture source. Your agent should walk you through these details before you purchase the endorsement.
How to File a Home Insurance Claim in Texas: Step-by-Step
The claims process in Texas is governed by the Texas Insurance Code and the Texas Prompt Payment of Claims Act, which impose strict deadlines on insurers. Knowing these deadlines can be the difference between a smooth settlement and a dispute that drags on for months.
The Texas Claims Timeline: What the Law Requires
Texas law sets specific deadlines for insurers after you file a claim. These are not suggestions; they are statutory requirements enforced by the Texas Department of Insurance (TDI).
| Step | Deadline (Texas Law) | What It Means for You |
|---|---|---|
| Insurer acknowledges your claim | Within 15 days of receiving it | The insurer must confirm they received your claim and begin the investigation. |
| Insurer accepts or rejects your claim | Within 15 business days after receiving all requested information | If the insurer needs more time, they must notify you in writing and explain why. |
| Insurer pays the claim | Within 5 business days after accepting it | Once your claim is approved, payment must be issued quickly. |
If your insurer misses these deadlines without a valid reason, they may owe 18 percent annual interest on the unpaid claim amount plus reasonable attorney’s fees. This only matters if you document every interaction and keep a paper trail.
The Step-by-Step Process, Texas Edition
- Document the damage before touching anything. Take photos and video of every affected area, including the roof, walls, floors, and personal belongings. If you have a high-value item like a firearm or jewelry piece that is damaged, photograph it in place before moving it.
- Make temporary repairs to prevent further damage. Texas law requires you to protect your property from additional damage, for example, covering a broken window with plywood or tarping a damaged roof. Keep every receipt for materials and labor; these are reimbursable under your policy’s loss of use or coverage provisions.
- File your claim promptly. Most HO-A policies require you to report a loss “immediately” or within a reasonable time. In Texas, a delay can give the insurer grounds to deny the claim if they can show the delay prejudiced their investigation.
- Prepare for the adjuster’s inspection. The adjuster will assess the damage and estimate repair costs. Be present during the inspection if possible, and point out all damage you have documented. Do not rely on the adjuster to find everything, they are looking for a defensible number, not necessarily the maximum payout.
- Get your own contractor estimate. Texas law does not require you to accept the insurer’s estimate. A licensed public adjuster or a reputable local contractor can provide a second opinion. If your contractor’s estimate is higher, submit it to the insurer with a written explanation.
- Review the settlement offer carefully. Compare the offer against your own estimates and your policy’s coverage limits. If the offer seems low, ask the insurer for a detailed explanation of how they calculated the payout, including the depreciation schedule they applied.
- Know your right to dispute. If you disagree with the settlement, you can request an appraisal, a process written into most HO-A policies where you and the insurer each hire an appraiser, and they jointly select an umpire to resolve the difference. This is faster and cheaper than litigation.
A common mistake is accepting the first settlement offer without question. In Texas, the first offer is often a starting point for negotiation, not a final answer. You have the right to push back with evidence, and the statutory deadlines work in your favor if you document your objections in writing.
What Happens If Your Claim Is Denied?
If your insurer denies your claim, request a written explanation citing the specific policy provision they relied on. Then file a complaint with the Texas Department of Insurance. For complex disputes, a Texas-licensed attorney can advise whether the denial violates the Texas Insurance Code.
An independent agent cannot force an insurer to pay a claim, but they can advocate on your behalf by reviewing the denial, explaining your policy’s language, and helping you gather documentation to appeal.
What Matters Most When Choosing Your Coverage
Choosing the right coverage means matching your policy to your actual risks, not just finding the lowest premium. The cheapest policy is rarely the best value once you account for coverage gaps and lower limits.
Start by calculating the true rebuilding cost of your home, not its market value. Then review your personal property limits and consider scheduling high-value items like jewelry or art separately.
Work with an agency that can compare policies across multiple carriers rather than one locked into a single company’s products. An independent agency like Glenn Davis Insurance, operating since 1974, can evaluate your specific situation and match you with coverage that provides the right protection at a competitive price.
The National Association of Insurance Commissioners consumer resources offer additional guidance on comparing homeowners policies and understanding your state’s specific regulations.
Choosing homeowners coverage in Texas means weighing real risks like hail, wind, and flooding against your budget, and most standard policies leave important gaps. An independent agent can compare options across multiple carriers and explain which endorsements fit your property. Glenn Davis Insurance has helped Texas homeowners match coverage to actual risks since 1974. Get quotes started and make sure your policy covers what matters most.
Frequently Asked Questions
What does Texas homeowners insurance not cover?
Standard Texas homeowners policies exclude flooding, earthquakes, and maintenance-related issues like termite damage or mold from long-term leaks. Wear and tear, and damage from neglect, are also excluded. Texas homeowners insurance exclusions commonly include ordinance or law coverage for rebuilding to new codes unless you add an endorsement. Review your policy’s declarations page for specific exclusions, and ask your agent about separate flood insurance through the National Flood Insurance Program.
Does homeowners insurance cover wind and hail damage in Texas?
Yes, windstorm and hail damage are covered perils under a standard Texas HO-A homeowners policy. This is important because hail is a leading cause of claims in the state. However, if you live on the Gulf Coast, windstorm coverage may require a separate policy through the Texas Windstorm Insurance Association (TWIA). Your deductible for wind and hail might also be a separate, higher percentage than your standard deductible.
What is the difference between replacement cost and actual cash value?
Replacement cost coverage pays to repair or rebuild your home or replace your belongings at today’s prices, without deducting for depreciation. Actual cash value (ACV) pays the replacement cost minus depreciation, meaning you receive less for older items. For example, a 10-year-old roof destroyed by hail would pay far less under an ACV policy. Most standard policies include replacement cost for your dwelling, but personal property coverage may default to ACV unless you choose an upgrade.
How do I file a home insurance claim in Texas?
Start by documenting the damage with photos and video before any repairs. Make temporary repairs to prevent further damage and keep receipts. Contact your insurance company or independent agent as soon as possible to report the claim. Your insurer must acknowledge the claim within 15 days in Texas. Keep a log of all communications and track your claim number. An independent agent can help you navigate the process and advocate on your behalf.