Don’t Get Caught Off Guard: Why Homeowners Insurance Gaps Matter

Your home is one of your biggest investments — but many homeowners in Central Texas don’t realize that standard homeowners insurance doesn’t cover everything. With changing weather patterns, rising rebuild costs, and property risks unique to our region, understanding your coverage is more important than ever.

Let’s walk through the most common places your policy might fall short (and how to fix them) so you stay protected when life throws a curveball.

📈 Why Home Insurance Gaps Matter Now

Home insurance costs nationwide have climbed due to more frequent severe weather and rising construction costs. This has led many homeowners to lower coverage limits, raise deductibles, or drop optional coverages — sometimes without realizing what’s being left out.

But cutting corners on coverage can mean big out-of-pocket bills when disaster strikes.

🌊 Flooding — It’s Not Covered (Standard Policies Don’t Include It)

Believe it or not, standard homeowners insurance doesn’t cover flood damage — even if your home is in a flood-prone area because of slow-moving storms or flash flooding.

💡 In Texas, that’s a big deal: heavy rain events and flash floods happen far more often than people expect, especially in a Hill Country downpour.

Solution: Consider a separate flood insurance policy through the NFIP or private flood market so you’re not left holding the bag after water damage.

🍄 Mold — Sneaky and Often Excluded

Mold damage might be covered only if it results from another covered peril (like a burst pipe). If it stems from a flood or long-term moisture, most policies won’t pay.

That’s why it’s worth talking to your agent today about mold coverage endorsements and how they apply to water issues unique to aging Texas homes.

🪨 Earthquakes and Land Movement — More Common Than You Think

Texas isn’t California — but earthquakes, sinkholes, and soil shifts do happen across many states. Standard policies exclude earth movement, meaning you could be on the hook for damage to your foundation or structure if the ground moves.

Tip: Ask about earthquake or earth movement coverage if you live near known fault lines or areas with unstable soil.

🔧 Optional Endorsements Worth Considering

There are several add-ons that many homeowners overlook:

🏚️ Extended Replacement Cost

Construction costs have risen sharply. If your home needs to be rebuilt after a disaster, your dwelling limit might not be enough. An extended replacement cost endorsement can help pay above your policy limit — a safety net many Central Texas homeowners never knew they needed.

🚿 Water & Sewer Backup

Flooding from backed-up sewers or drains is not covered under standard policies — but it can be added with an endorsement.

⚡ Equipment Breakdown

This covers major home systems like HVAC, electrical panels, and water heaters when they fail — not the same as a home warranty.

🛠️ Ordinance or Law Coverage

If your home needs to be rebuilt to current building codes, the extra expense isn’t automatically covered. Boosting ordinance coverage helps pay those costs.

💎 Property Add-Ons — Don’t Forget Your Stuff

Standard policies have limits on certain personal property:

• Jewelry
• Fine art
• Firearms
• Collectibles

If you own high-value items, consider scheduled personal property so you’re not underinsured when the unexpected happens.

🤝 Liability & Life Beyond the Home

Your homeowners policy also offers liability coverage — but sometimes it’s not enough if:

• You host events at your home
• You run a home-based business
• You have lots of visitors

An umbrella policy can extend liability limits significantly so your assets stay protected.

🧠 Bottom Line for Central Texas Homeowners

Insurance is more than a monthly premium — it’s peace of mind. In Central Texas and the Hill Country, wind storms, hail, flooding, and rapid increases in rebuild costs make understanding your coverage essential.

Don’t wait for a claim to find out you’re underinsured. Sit down with an experienced agent who can walk through your policy, uncover gaps, and recommend the right endorsements or separate coverages for your unique home.

👉 At Dowd Insurance Agency, we help homeowners make sure their coverage fits their life, budget, and property risk — not the other way around.