Flood Damage Exclusion

Standard Texas homeowners policies explicitly exclude flood damage, regardless of the cause. This includes rising water from excessive rainfall, overflowing rivers, storm surges, or dam failures. Even minimal flood damage from just a few inches of water can cause tens of thousands in repair costs yet remains entirely uncovered without separate flood insurance. This exclusion creates a significant protection gap for many Texas homeowners, particularly in coastal regions and flood-prone areas throughout the state. The National Flood Insurance Program (NFIP) and private flood insurance remain the only options for protection against this common Texas hazard.

Earth Movement Limitations

Texas homeowner's policies exclude damage from earth movement, including earthquakes, sinkholes, landslides, and soil expansion/contraction. With increasing seismic activity in North and West Texas regions potentially linked to wastewater injection wells, this exclusion has growing relevance. Clay soils common throughout central Texas expand and contract significantly with moisture changes, causing foundation damage that remains excluded under standard policies. Specialized endorsements or separate earth movement policies are necessary for protection against these risks.

Mold and Maintenance Issues

Most Texas policies severely limit or exclude mold damage despite Texas's humid climate, which creates favorable conditions for growth. Coverage typically applies only when mold results directly from a covered water damage event and is reported promptly. Gradual damage from maintenance-related issues receives no coverage, including long-term plumbing leaks, roof deterioration, or termite damage. Texas courts generally uphold these exclusions, emphasizing that insurance covers sudden and accidental damage rather than maintenance responsibilities.

Specific Property Limitations

Standard Texas policies impose strict sub-limits on certain property types. Jewelry theft coverage typically caps at $1,500 total without scheduled endorsements. Electronic equipment, firearms, and collectibles face similar restrictions. Cash and precious metals usually have limits under $500. Business property kept at home often receives minimal protection, typically $2,500 or less. Digital assets and cryptocurrency generally receive no explicit coverage under standard policy language.

Service Line and Equipment Breakdown

Traditional Texas homeowner's policies exclude damage to underground utility lines on your property. When water, sewer, electrical, or gas lines fail between your home and the property line, repair costs, and associated property damage typically remain uncovered without specific service line endorsements. Similarly, mechanical or electrical breakdown of home systems and appliances receives no coverage under standard policies without equipment breakdown endorsements.