Top 10 Insurance Questions Texas Homeowners Are Asking in 2026

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Top 10 Insurance Questions Texas Homeowners Are Asking in 2026

Whether you’re buying your first home or reviewing your policy before renewal, homeowners insurance can feel confusing—especially with all the industry changes in 2026. At McKnight Insurance, we hear a lot of the same questions from Texas homeowners every day.

Here are the top 10 most frequently asked questions—and our expert answers to help you stay informed and protected.

1. Why did my homeowners insurance premium go up this year?

Premiums are rising across Texas due to:

• Increased weather-related claims (hail, floods, wind)
• Higher building material and labor costs
• Adjustments to coverage or deductible structures

Even if you haven’t filed a claim, your rate can go up due to regional trends and inflation.

2. What’s the difference between replacement cost and actual cash value?

• Replacement Cost: Pays to replace damaged items or structures with new ones.
• Actual Cash Value (ACV): Pays the depreciated value of the item.

For example, if your 10-year-old roof is damaged, ACV may pay only a portion. Replacement cost covers the full price to replace it.

3. Am I covered for hail or windstorm damage?

Most Texas home insurance policies cover hail and wind—but check if you have a separate deductible for wind/hail claims. These are often percentage-based (e.g., 1% of your home’s value).

In coastal areas, windstorm coverage may be excluded and must be purchased separately through TWIA.

4. Do I need flood insurance if I’m not in a flood zone?

Yes. Over 25% of flood claims come from homes outside designated flood zones.

Homeowners insurance does not cover flood damage—you need a separate policy through the National Flood Insurance Program (NFIP) or a private flood insurer.

5. Is water damage from a burst pipe covered?

Usually, yes—if the damage is sudden and accidental.

However, gradual leaks, foundation seepage, or lack of maintenance may not be covered. Read your policy’s water damage exclusions carefully, and consider a water backup endorsement for extra protection.

6. How much dwelling coverage do I need?

You should have enough to fully rebuild your home at current construction costs—not its real estate market value.

Annual policy reviews help adjust for inflation and renovations like:

• Kitchen or bath remodels
• Room additions
• Roof replacements

7. Can I bundle home and auto insurance to save money?

Absolutely. Most insurers offer 10–20% discounts for bundling, plus the convenience of managing fewer policies.

Ask your agent to shop bundled options across multiple carriers.

8. What is an insurance deductible and how does it work?

Your deductible is the amount you pay out of pocket before insurance kicks in.

• Lower deductibles mean higher premiums
• Higher deductibles mean lower premiums, but more cost in a claim

Many Texas homeowners now have percentage-based wind/hail deductibles (1% to 2% of the insured dwelling amount).

9. Are my valuables like jewelry or collectibles fully covered?

Not always. Standard policies have limits (e.g., $1,500 for jewelry or electronics).

Ask about scheduled personal property coverage to fully protect:

• Jewelry and watches
• Firearms
• Artwork and antiques
• Musical instruments

10. Should I work with an independent agent or go direct?

An independent agent (like McKnight) can:

• Shop multiple carriers
• Customize your coverage
• Help with claims
• Advocate for you—not the insurer

You get more options, personalized service, and a local expert who understands Texas risks.

Got More Questions?

We’ve got answers. Contact McKnight Insurance to speak with a local agent and get a personalized homeowners insurance review. Let’s make sure you’re covered where it matters most.