If you're buying a new home in Sugar Land, Katy, or anywhere in Texas, you’ve probably asked: “How much homeowners insurance do I actually need?” It’s a fair question—and one we get all the time at DeShazo Insurance. The answer depends on your home’s value, what’s inside it, and what risks you're most likely to face in our region.

Let’s break it down.

What Is Homeowners Insurance Supposed to Cover?

In Texas, a standard homeowners policy usually covers:

• Your home’s structure (aka dwelling coverage)
• Other structures (like fences, garages, sheds)
• Personal belongings (furniture, clothes, appliances)
• Liability (if someone gets hurt on your property)
• Loss of use (if you need to live elsewhere during repairs)

But the real question is: how much coverage do you need for each of these categories?

 

1. Dwelling Coverage: Start with Rebuild Cost, Not Market Value

Your home insurance should be based on the cost to rebuild your home, not its current market price. That includes materials and labor in today’s economy—not what you paid for the house.

 

Pro tip: Ask your agent for a replacement cost estimate. It’s usually based on square footage, features (like granite countertops), and local construction costs.

If you underinsure your home and suffer a major loss, you could be left paying out of pocket.

2. Personal Property: What’s Inside Matters

Your stuff matters. Most policies cover personal belongings at 50–70% of your dwelling coverage, but you can adjust this based on what you own.

For example:

• Have a lot of tech gear? Boost electronics coverage.
• Own fine jewelry, art, or collectibles? Consider Personal Articles Insurance to cover high-value items.

📝 Create a home inventory—it’s useful for claims and helps set the right limits.

3. Liability Protection: Often Overlooked, Always Important

Liability coverage pays legal costs if someone is hurt on your property or if you cause accidental damage (e.g., your kid breaks a neighbor’s window).

Most policies start at $100,000, but we recommend bumping that to $300,000–$500,000 or more.

 

Got a pool, trampoline, or frequent visitors? It’s smart to also consider umbrella insurance for extra liability protection.

 

4. Additional Living Expenses (ALE): Don’t Skip It

If your home is uninhabitable due to a covered loss (like a fire), ALE covers your hotel stays, meals, and temporary housing.

Make sure your policy includes realistic limits, especially if you live in high-cost areas like West Houston or Sugar Land.

5. Don't Forget Texas-Specific Risks: Flood & Wind

Homeowners insurance does NOT cover flood damage—you’ll need a separate flood insurance policy, especially in flood-prone zones near the Brazos River.

 

If you’re in a windstorm area (coastal counties), check if wind damage is excluded. You might need a separate TWIA (Texas Windstorm Insurance Association) policy.

TL;DR – Your Coverage Should Reflect Your Life
Your home insurance coverage should be based on what it would cost to rebuild your home—not what you paid for it. For personal belongings, aim to insure 50–70% of your home’s value, adjusting higher if you own valuables like jewelry or electronics. Liability protection should start at $300,000 or more, especially if you have higher-risk features like a pool or frequent guests. For loss of use, make sure your policy can cover at least 12 to 24 months of alternate housing. And remember—flood and wind damage typically require separate policies in Texas.

 

Everyone’s home is different—and your insurance should be too. At DeShazo Insurance, we help homeowners across Texas find policies that truly fit their needs, not just the minimum.

 

Want to review your current policy or start a new one? We’re happy to help.