The cheapest policy could become the most expensive decision you make.
Your home is probably one of the largest investments you’ll ever make. Yet many Texas homeowners aren’t completely sure what their insurance covers—or what it doesn’t cover.
After helping Texas families with insurance since 1985, I’ve learned one important lesson:
Saving money on insurance matters. But having the right protection when something goes wrong matters a whole lot more.
A low premium doesn’t mean much if a fire, hurricane, theft, water loss or lawsuit leaves you with a coverage gap you didn’t know existed.
Here are a few things every Texas homeowner should understand.
1. Don’t Confuse Your Home’s Value With Its Rebuilding Cost
Your house may sell for $400,000, but that doesn’t necessarily mean it should be insured for $400,000.
Insurance is primarily concerned with what it would cost to rebuild your home after a covered loss, not what a buyer would pay for your house and land.
Construction costs, labor and materials can change quickly—especially after a major Texas storm.
That’s why one of the first questions I recommend asking your agent is:
“If my home were destroyed today, do I have enough insurance to rebuild it?”
If you don’t know the answer, it’s worth finding out.
2. Know What Your Policy Actually Protects
A homeowners policy can provide much more than insurance on the house itself.
Depending on your policy, protection may include:
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- Your home – repairing or rebuilding after a covered loss
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- Other structures – such as a detached garage or storage building
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- Personal belongings – furniture, clothing, electronics and other possessions
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- Personal liability – protection if you’re legally responsible for certain injuries or property damage
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- Medical payments – certain medical expenses when a guest is injured
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- Additional living expenses – helping with increased living costs if a covered loss makes your home uninhabitable
Here’s the problem:
Having a homeowners policy doesn’t automatically mean you have enough homeowners insurance.
The limits, deductibles and exclusions matter.
3. Replacement Cost vs. Actual Cash Value Can Make a BIG Difference
This is something I want every homeowner to understand before a claim.
Actual Cash Value generally takes depreciation into account.
Replacement Cost coverage can provide considerably greater protection, subject to your policy’s terms and limits.
Think about an older television destroyed in a covered loss. Would you rather receive its depreciated value—or have coverage designed to help replace it with a comparable new one?
Now think bigger.
What if we’re talking about your roof instead of your television?
Ask your agent:
“How will my roof, home and belongings be valued if I have a claim?”
Don’t discover the answer after the damage is done.
4. Coastal Texas Homeowners Have Another Concern: Windstorm
If you live in Corpus Christi or another Texas coastal community, your homeowners policy may not cover windstorm and hail.
You may need separate windstorm coverage.
That means your protection could involve three different pieces:
Homeowners + Windstorm/Hail + Flood
Those policies need to work together.
This is one reason coastal insurance isn’t something I believe homeowners should treat as a simple online price-shopping exercise.
5. Your Homeowners Policy Usually Does NOT Cover Flooding
This surprises many homeowners.
Standard homeowners insurance generally doesn’t cover flood damage.
And don’t assume you’re safe simply because someone told you, “You’re not in a flood zone.”
Flooding can happen outside areas considered high risk.
If you live anywhere along the Texas Gulf Coast—or anywhere that can experience heavy rainfall—ask about flood insurance.
The worst time to discover you needed flood insurance is when there’s water in your house.
6. A Cheap Deductible Isn’t Everything—And Neither Is a Cheap Premium
Higher deductibles can sometimes lower your insurance premium.
That’s fine—as long as you understand how much you’ll have to pay after a loss.
Texas policies may also have different deductibles for different types of claims.
Don’t just ask:
“What’s my deductible?”
Ask:
“If I had a major claim tomorrow, exactly how much money would I have to pay out of my pocket?”
That is the number that matters.
The 7 Questions I Want You to Ask About Your Home Insurance
Take out your current policy and see whether you can answer these:
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- Do I have enough coverage to rebuild my home today?
- Do I have Replacement Cost or Actual Cash Value coverage?
- How would my roof be covered after a claim?
- What are my deductibles in actual dollars?
- Do I have enough personal liability protection?
- Do I need separate windstorm or flood insurance?
- What important exclusions or coverage gaps are hiding in my policy?
Before You Renew, Get a Second Opinion
You don’t have to become an insurance expert.
That’s our job.
At Ed Cantu Insurance & Financial Services, we’ll review your current protection, explain it in plain English and help identify:
✓ Potential coverage gaps
✓ Possible savings
✓ Deductible concerns
✓ Windstorm and flood needs
✓ Better protection options
No pressure. No confusing insurance jargon. Just answers.
My team of professional agents and I have been helping Texas families protect their homes, vehicles and financial futures since 1985.
My philosophy is still the same one behind my book, Informed and Insured:
The more informed you are, the better decisions you can make about protecting your family.
Ask yourself, Is Your Home Properly Protected?
Don’t wait until you have a claim to find out.
Call Ed Cantu Insurance & Financial Services today at (361) 991-3575 or request a Home Insurance Quote/Protection Review at EdCantuInsurance.com.
Let us help you find the right protection at a price you can afford.
Because We Care,
Ed Cantu
Ed Cantu Insurance & Financial Services —
Helping Texas families protect what matters most since 1985.
Coverage varies by insurance company, policy form, endorsements, exclusions, limits and individual circumstances. This article is for general educational purposes. Please review your individual coverage with a licensed insurance professional.
