Your home is more than just a building—it’s your family’s safety net and your largest investment. Whether you’re in Dallas, Houston, San Antonio, or a smaller Texas town, it’s essential to make sure your homeowners insurance is enough to protect your property. Here’s a comprehensive checklist to help you evaluate your current coverage.
What Is Homeowners Insurance In Texas?
Homeowners insurance protects against financial loss from fire, windstorms, theft, and other hazards. Most standard policies include:
Dwelling coverage – repairs or rebuilds your home’s structure
Personal property coverage – reimburses for damaged or stolen belongings
Liability protection – covers accidents that happen on your property
Additional living expenses – helps cover temporary housing if your home becomes unlivable
Do you have Replacement Cost Value coverage?
It is important to know whether your insurance policy provides replacement cost value (RCV) coverage or actual cash value (ACV) coverage. RCV coverage entitles you to recover the cost to rebuild your home after a covered loss. ACV—which is RCV less depreciation—only entitles you to recover the actual cash value. Other words, the insurance company depreciates the repairs based on the age and wear and tear of the item. For instance, if your home has a 30 year roof and the roof is 10 years old at the time of the covered loss, then the insurance company could depreciate the repair cost by 1/3 and only pay you for 2/3 of the cost to replace your roof. Although generally more expensive, ACV coverage provides broader coverage needed to fully replace your damaged property.
If you remodel or add-on to your home, let your insurance company know so the policy reflects the new increased value of your property. You want to make sure your insurance policy fully covers the cost to repair or replace your property.
Keep an Up-to-Date Inventory of Your Contents
This isn’t always so easy. One idea – if maintaining an updated written inventory of your contents sounds unrealistic, use a video camera (or your phone) to video your contents in every room from time to time. Doing so can be very helpful in creating an inventory list after a fire or other major loss. Also, be sure to save the video (or other documentation) off-site (i.e., at your work or in the Cloud) so you have access after such a loss. Trying to recall each and every item you owned prior to a loss can be very difficult, if not impossible.
Fire, Storm, and Weather Damage in Texas: Are You Covered?
Even small fires can cause significant damage resulting from smoke and water throughout your home or business. Texas homeowners face frequent and sometimes severe weather events. Your policy should be designed to cover the unique risks of living in the state, including:
If your property is damaged, contact your insurance provider immediately. Even minor fires can lead to significant structural and water damage. Always document the damage thoroughly, take photos, and save all correspondence with your adjuster.
Confirm Your Insurance Company’s Estimate Covers All Damages
If your insurance company’s initial estimate is ultimately not enough when it comes time to hire a contractor (if one wasn’t consulted during initial period following loss), tell the adjuster assigned by your carrier. You may want to consult with qualified insurance or legal professionals if you suspect your insurance company is refusing to fully pay for the covered damages.
Remodeling Your Texas Home? Make Sure to Update Your Insurance
If you’ve recently added a new room, remodeled your kitchen, or built a garage or backyard structure, your current homeowners insurance policy may no longer provide enough coverage. Texas homeowners insurance should always reflect the true replacement cost of your home—especially after upgrades that increase your property’s value.
What Is the Difference Between Hazard Insurance and Homeowners Insurance?
In Texas, “hazard insurance” is often used to describe the portion of your policy that protects against specific risks—such as fire, hail, or wind damage. However, homeowners insurance is a broader policy that also includes:
Personal property coverage
Liability protection
Loss of use (temporary housing if your home is uninhabitable)
Many mortgage lenders require proof of hazard insurance, but most Texas homeowners policies already include it as part of their standard coverage. Understanding this distinction ensures you’re not missing essential protections.
What to Do If Your Insurance Estimate Is Too Low
Sometimes, insurance companies underestimate the true cost of repairs or replacement. If the initial settlement offer doesn’t reflect local labor rates or material prices in Texas, you have the right to challenge it.
Steps you can take:
Obtain a detailed estimate from a licensed contractor
Share that estimate with your insurer
Request a revised payout based on the updated costs
If your insurance company refuses to adjust the claim fairly, consult with an experienced insurance law firm. At Grisham & Kendall, we help Texas homeowners dispute low estimates and pursue compensation for underpaid claims and bad faith insurance practices.
Protect What Matters Most
In Texas, homeowners face unique risks—from wildfires and windstorms to rising rebuild costs. Make sure your insurance policy provides comprehensive protection for your dwelling, belongings, and financial future. If your insurer isn’t honoring your coverage, Grisham & Kendall is here to help you fight for what you’re owed.
FAQs About Property Insurance in Texas
It’s not legally required by the state, but most mortgage lenders will require it as a condition of your home loan.
Dwelling coverage is the backbone of your policy. It pays to rebuild your home after a covered loss. Many homeowners underestimate this amount.
If your home is underinsured, you may have to pay out-of-pocket to complete repairs after a disaster.
The cost of homeowners insurance in Texas varies based on location, property value, construction materials, and risk exposure. Texas ranks among the top states for high insurance premiums due to frequent severe weather events.
Yes, you can change providers anytime. Just ensure there is no gap in coverage during the transition.
Yes. Most policies include fire as a covered peril, but you should review your specific terms to confirm what’s included and excluded.
You can dispute the payout and submit a contractor’s estimate. If your claim is still denied or underpaid, legal help may be needed.
Hazard insurance refers to coverage for physical damage from specific perils like fire, wind, and hail. It is typically part of a homeowners policy.
Yes, most standard Texas homeowners insurance policies include hazard coverage as one of their components.
