What Does Texas Homeowners Insurance Cover?

Homeowners insurance provides financial protection against losses and damages to a residence and its contents, as well as liability for injuries to others on the property. In Texas, the specific coverage provided by a homeowners policy can vary significantly, making it important for homeowners to understand the different components and options available. The Texas Department of Insurance (TDI) regulates home insurance policies within the state.

Standard Coverage Areas

A typical Texas homeowners insurance policy includes several core components designed to protect different aspects of your property and personal liability. Dwelling coverage protects the physical structure of your home, including the roof, walls, and foundation. This coverage extends to structures attached to the main house, such as an attached garage.

Other structures coverage applies to buildings on your property that are not connected to your main dwelling. This can include detached garages, sheds, fences, and tree houses. Personal property coverage safeguards your belongings within the home or on the property, such as furniture, electronics, and clothing. This coverage can be based on either actual cash value, which accounts for depreciation, or replacement cost, which pays for new items without deducting for age or wear.

Loss of use coverage, also known as additional living expenses, provides funds if your home becomes uninhabitable due to a covered loss. This can help with temporary housing, food, and other increased living costs you incur while your home is being repaired. Personal liability coverage protects you if you are found legally responsible for bodily injury or property damage to others, whether the incident occurs on or off your property. This coverage can also help with legal defense costs if you are sued.

Medical payments to others coverage pays for medical expenses for guests injured on your property, regardless of who was at fault. This coverage does not apply to household members. These standard coverages are subject to specific policy limits, deductibles, and exclusions.

Covered Events

Homeowners insurance policies in Texas define coverage based on either “named perils” or “open perils.” Named perils policies provide coverage only for the specific events explicitly listed in the policy document. Open perils policies, also known as “all-risk” or “comprehensive” policies, cover all causes of loss unless the peril is specifically excluded.

Many standard Texas policies use a named perils approach for personal property, while the dwelling structure might be covered on an open perils basis. Common perils covered by a standard policy include fire and lightning, windstorm and hail, theft, and vandalism. Other frequently covered events include accidental discharge of water from plumbing, falling objects, explosion, and the weight of ice or snow.

The specific types of covered events can vary depending on the policy form, such as HO-A, HO-2, HO-3, HO-5, or HO-B. For instance, an HO-A policy might cover wind, hail, fire, and theft, while an HO-3 is more comprehensive, often including accidental water damage. The most comprehensive policy, HO-B, covers the house on an “all perils” basis.

Common Exclusions from Coverage

While homeowners insurance provides broad protection, several common perils are excluded from standard policies. Flood damage is a primary exclusion, regardless of the cause, including rising water from heavy rainfall, overflowing rivers, or storm surges. Separate flood insurance, often obtained through the National Flood Insurance Program (NFIP) or private insurers, is necessary for this type of coverage.

Earth movement, such as earthquakes, sinkholes, landslides, and soil expansion or contraction, is also excluded. Specialized endorsements or separate policies are required to cover these risks. Damage from mold is limited or excluded in standard policies, especially if it results from gradual issues like long-term leaks or poor maintenance. Coverage for mold applies only if it stems directly from a sudden and accidental covered water damage event and is reported promptly.

Wear and tear, neglect, intentional acts, governmental action, and damage from pests like termites are also standard exclusions. In Texas, policies may include specific wind and hail deductibles, which means homeowners pay a portion of the repair costs out-of-pocket before coverage begins. Damage to underground utility lines or mechanical breakdown of home systems are also excluded without specific endorsements.

Additional Coverage Options

Homeowners can enhance their standard policies with additional coverage options, known as endorsements or riders. Water backup and sump overflow coverage addresses damage caused by water backing up through sewers or drains, or from sump pump failures, which is not typically covered by a standard policy. Foundation coverage can be added to address specific foundation repair issues, which are often excluded if caused by earth movement or soil shifts.

Mold coverage endorsements can extend protection for mold remediation beyond what a standard policy might offer, particularly for mold not directly caused by a sudden, covered water event. Identity theft protection is an add-on that helps with expenses related to restoring one’s identity after a theft.

Extended replacement cost for dwelling provides an additional percentage of coverage above the dwelling limit, if rebuilding costs exceed the original policy amount. Scheduled personal property endorsements are used to insure high-value items like jewelry, fine art, or collectibles for their appraised value, offering broader coverage than the limited sub-limits found in standard personal property coverage. These options allow homeowners to tailor their policy to their specific needs and risks.