The Central Texas Homeowners Insurance Guide: 10 Things Every Homeowner Should Know
It All Begins Here
If there is one thing I've learned after more than 25 years in the insurance business, it's this:
The worst time to learn how your homeowners insurance works is after something happens.
Most homeowners don't need—or want—to become insurance experts. But your home is probably one of your largest financial assets, and I believe every homeowner should understand the basics of the policy protecting it.
That's particularly important here in Central Texas.
Our homes face hail, wind, severe thunderstorms, extreme heat, water losses and rising construction costs. At the same time, homeowners insurance policies can vary significantly in deductibles, roof settlement provisions, endorsements and other coverage details.
I've put together 10 of the most important lessons I've learned helping homeowners understand their insurance.
My goal isn't to tell you what policy to buy.
It's to help you know what questions to ask.
1. Don't Compare Homeowners Insurance on Price Alone
Everyone wants to save money on insurance.
I do too.
But when someone shows me a homeowners insurance quote that's dramatically less expensive than another, one of my first questions is:
Why?
Maybe it really is a better value.
But it's worth looking deeper.
Did the deductible change?
Is the roof handled differently?
Are the coverage limits the same?
Were endorsements added or removed?
Are there important differences in how losses are settled?
Two homeowners policies can have similar premiums—or very different premiums—and provide meaningfully different protection.
My advice:
When comparing homeowners insurance, don't just ask:
"How much does it cost?"
Also ask:
"What am I getting for that price?"
Saving several hundred dollars can be great.
Just understand why you're saving it.
2. Know Your Deductible in Dollars — Not Just Percentages
This is particularly important in Texas.
I'll ask a homeowner:
"What's your deductible?"
And they'll respond:
"One percent."
My next question is:
"How many dollars is that?"
That's where people sometimes get surprised.
A percentage deductible is generally calculated using the applicable insured value specified by the policy—not simply as a percentage of the amount of your claim.
For example, if the applicable coverage amount were $500,000, a 1% deductible would equal $5,000.
And if that insured value changes over time, the dollar amount represented by that percentage can change too.
Every homeowner should know:
What type of deductible they have
Whether different deductibles apply to different types of losses
What those deductibles equal in actual dollars
Don't wait until after a hailstorm to do the math.
3. Understand How Your Roof Is Covered
If you own a home in Central Texas, this deserves special attention.
Our roofs take a beating.
Hail.
Wind.
Extreme heat.
Severe thunderstorms.
And one of the biggest misconceptions I hear after a storm is:
"My neighbor got a new roof. Why wouldn't I?"
Because your neighbor isn't you.
You may have different:
Damage
Roof ages
Deductibles
Policies
Settlement provisions
Insurance companies
Depending on the policy, roof losses may also be handled differently based on factors such as roof age, materials, endorsements and settlement provisions.
Ask your insurance professional:
How would my roof be settled after a covered loss?
That's a much better question to ask before the next Central Texas hailstorm.
4. Replacement Cost Is Not the Same as Market Value
This causes a lot of confusion.
Someone buys a home for $450,000 and sees a different amount listed as the dwelling coverage on the homeowners policy.
They naturally ask:
"Why doesn't my insurance match what my house is worth?"
Because they're measuring different things.
Market value
is influenced by things such as:
Location
Land
School districts
Neighborhood demand
Lot size
Real estate conditions
Reconstruction cost
is concerned with what it could cost to rebuild the insured structure after a covered loss, subject to the policy.
That can involve:
Construction labor
Building materials
Debris removal
Contractor costs
Current building requirements
Other reconstruction expenses
Those numbers don't necessarily move together.
That's why I encourage homeowners not to use a Zillow estimate or purchase price as their only reference point for determining how much insurance their home needs.
5. Not All Water Damage Is the Same
Water damage is one of the most misunderstood areas of homeowners insurance.
Imagine two situations.
Scenario A:
A pipe suddenly bursts and water damages part of the house.
Scenario B:
A pipe has been slowly leaking for months and eventually causes significant deterioration.
Both involve water.
But they aren't necessarily treated the same way by a homeowners policy.
The cause, timing, policy language and circumstances can all matter.
The same principle applies to questions involving:
Water heaters
Plumbing leaks
Sewer or drain backup
Flooding
Service lines
Mold
The lesson:
Don't assume that because something involves "water damage," every water loss is covered—or excluded—the same way.
This is exactly the type of coverage worth understanding before there's water on the floor.
6. Your Homeowners Policy Protects More Than the House
When people think about homeowners insurance, they naturally picture the structure.
But there's much more to understand.
Depending on the policy and circumstances, homeowners insurance can include protection related to:
Personal property
Furniture, clothing, electronics and other belongings.
Liability
Protection for certain situations in which you may be legally responsible for injury or property damage.
Additional living expenses
Certain additional costs if a covered loss makes your home temporarily uninhabitable.
That last one is particularly easy to overlook.
We spend a lot of time talking about:
"How will the house get rebuilt?"
But there's another important question:
"Where does the family live while that's happening?"
A major homeowners loss affects more than a building.
It affects the people who live inside it.
7. Tell Your Insurance Agent When Your Home Changes
Your house probably doesn't look exactly like it did when you purchased it.
Maybe you've:
Remodeled the kitchen
Renovated bathrooms
Added a room
Built a covered patio
Installed an outdoor kitchen
Added a pool
Made significant upgrades
Those changes may affect your insurance needs.
Yet homeowners sometimes spend tens of thousands of dollars improving their property and never think to review their insurance afterward.
A simple rule I've learned over the years:
When your home changes significantly, it's worth reviewing the insurance protecting it.
The same applies as your roof ages or other major characteristics of the property change.
Your policy shouldn't necessarily remain frozen while the home it's designed to protect evolves.
8. Think Carefully Before and After a Claim
Something happens to the house.
Does that automatically mean the first thing you should do is file a claim?
Not necessarily.
First and foremost, protect people.
If appropriate and safe, take reasonable steps to prevent additional damage.
Document what happened.
Understand the extent of the damage as best you reasonably can.
Know your deductible.
And get reliable guidance rather than making assumptions based on what happened to a neighbor or what someone posted online.
Every loss is different.
Every policy is different.
This is also where I believe a local insurance relationship still has tremendous value.
Sometimes homeowners don't need an app or an 800 number.
They need someone knowledgeable who can help them understand the process and the questions they should be asking.
9. A Little Preparation Can Make a Major Loss Easier
Some of the best homeowners insurance advice I've learned over 25+ years isn't really about insurance.
It's about preparation.
Here's one of my favorites:
Take out your phone and record your house.
Walk from room to room.
Open closets.
Record furniture.
Electronics.
Appliances.
Tools.
And other significant belongings.
Then securely store that information somewhere you could access it even if your home or phone were damaged.
Hopefully you'll never need it.
But imagine trying to remember everything you owned after experiencing a major loss.
Ten minutes of preparation today could make an already difficult situation a little easier.
I also encourage homeowners to think about preparation before:
Vacations
Severe weather
Freezing temperatures
Major renovations
Extended periods away from home
Insurance is an important financial safety net.
Preventing or minimizing a loss is even better.
10. Have Someone You Trust Who Will Answer Your Questions
Technology has made insurance incredibly convenient.
You can obtain quotes online.
Access policies through apps.
Make payments electronically.
File claims digitally.
Those are all good things.
But after more than 25 years in this business, I still believe there's tremendous value in having a knowledgeable person you trust.
Someone you can call and ask:
"What does this deductible mean?"
"How is my roof covered?"
"We're putting in a pool. Do we need to do anything?"
"We just remodeled the kitchen. Should we review our coverage?"
"Can you help me understand these two quotes?"
Those conversations often happen when nothing is wrong.
And that's exactly when I want them to happen.
The best insurance conversations usually happen before you need your insurance.
Bonus: 10 Questions to Ask About Your Homeowners Insurance
If you haven't reviewed your homeowners insurance recently, start here:
What is my deductible in actual dollars?
Do I have different deductibles for wind, hail or other losses?
How would my roof be settled after a covered loss?
Does my dwelling coverage reasonably reflect current reconstruction costs?
How does my policy address different types of water damage?
Do I understand my personal property coverage and settlement terms?
How much personal liability protection do I have?
What additional living expense protection does my policy provide?
Have renovations, a pool or other changes affected my insurance needs?
When was the last time I actually reviewed my policy with someone?
If you can't answer several of these, that's okay.
Those are exactly the conversations insurance professionals should be helping homeowners have.
A Central Texas Perspective
Why Local Knowledge Matters
Central Texas is home to an incredible variety of properties—from established Austin neighborhoods to rapidly growing communities throughout Williamson and Travis counties.
But our area also comes with real homeowner risks.
Hail and severe thunderstorms are part of living here. Extreme heat takes a toll on homes. Construction and labor costs change. Roofs age. Families remodel. Pools and outdoor living spaces are common.
That's why I believe homeowners insurance shouldn't be approached as something you purchase once and forget.
Your home changes.
The market changes.
Insurance changes.
Your understanding should keep up.
About the Author
Chris Lewis
Owner, The Lewis Agency | 25+ Years of Insurance Experience
I've spent more than 25 years in the insurance industry helping families understand their coverage and make informed decisions about protecting their homes and financial futures.
I created the Central Texas Homeowners Insurance Resource Center to take the questions I've answered throughout my career and make those answers available to homeowners throughout Austin, Leander, Cedar Park, Georgetown, Round Rock, Liberty Hill, Pflugerville and surrounding Central Texas communities.
My philosophy is simple:
You shouldn't have to become an insurance expert. But you should have access to someone willing to help you understand it.