What Homeowners Insurance Does Not Cover in Texas

Short answer: a Texas homeowners policy pays for sudden, accidental damage from a covered peril. It does not pay for flood, gradual leaks and seepage, wear and tear, earth movement, pests, or mold cleanup beyond repairing a covered loss. Some gaps can be addressed with endorsements or separate policies. Availability and terms depend on the insurer and issued form.

There is a second thing to understand before the list. Texas homeowners policies are not written on one standard form. TDI's own report states that companies must write Texas homeowners insurance on forms approved by TDI, and that insurers began filing and using their own forms in 2003 under SB 14 of the 78th Legislature, with some insurers still using the older promulgated forms. TDI's consumer guide puts it simply: coverages vary by company.

So read this as the map of where the gaps usually are, then read your own policy. Where TDI documents something we cite it. Where TDI does not, we say so rather than filling it in.

The four form types in Texas

TDI's Texas Homeowners Policies report, dated April 12, 2018, groups Texas policies by what perils they cover:

Form	Building	Contents
HO-A and HO-A+	Named perils	Named perils
HO-B	All risk, all perils unless excluded	Named perils
HO-C	All risk, all perils unless excluded	All risk

Examples of insured property perils include fire, lightning, wind, hail, and theft, depending on the form. Premises liability is a separate liability coverage, not a cause of physical loss.

On a named-perils form, the cause must fit an insured peril and the other conditions. An open-perils form still contains exclusions, limits, and duties. Check the actual policy and endorsements rather than relying on the label or declarations alone.

Flood is excluded, and it is the biggest one

TDI states it in two places without qualification. Most home policies do not cover damage caused by floods. Home insurance policies do not cover flood damage.

Arrange a separate NFIP or private flood policy where needed. New NFIP coverage usually has a 30-day waiting period, with defined exceptions; private policies have their own terms. Buying while a storm develops does not mean coverage starts in time for that event.

TDI's home insurance guide adds the fact that reframes this for most Texans: more than half of homes flooded by Hurricane Harvey were outside designated flood zones. Not being in a mapped flood zone is not the same as not being exposed. Our Texas flood insurance guide covers that.

NFIP generally excludes mold that could have been prevented, but circumstances can affect treatment of flood-related mold. Follow mitigation duties and ask the flood adjuster rather than assuming every mold loss is excluded. Water entering from above, such as wind-driven rain or water through a damaged roof, is not covered by a flood policy. So there is a seam between the two policies, and water that comes through the roof during a hurricane is a homeowners question while water that rises from the ground is a flood question.

Water damage: the sudden versus gradual line

This is the exclusion that generates the most disputes in Texas, and TDI's water damage and mold page, last updated April 24, 2025, draws the line clearly.

Covered: most homeowner and renters policies cover sudden and accidental water damage. TDI's examples are a burst pipe, a toilet overflow, and a broken washer hose.

Not covered: most home policies do not cover water damage from gradual leaks or seepage, and TDI specifically includes damage from mold in that exclusion.

TDI's 2018 report puts the policy language around it. Excluded is water damage resulting from continuous and repeated leakage or seepage. Some companies cover sudden and accidental discharge or overflow of water or steam but not seepage lasting beyond specified time limits. And the resulting condition is excluded too: water leakage resulting in deterioration, corrosion, rust, or wet or dry rot is not covered.

The practical consequence is uncomfortable. A pipe that bursts on Tuesday is a claim. The same pipe weeping behind a wall for eight months, producing the same repair bill, generally is not. Which is an argument for looking behind things occasionally.

On slab and foundation leaks specifically, which matter enormously in Texas clay soils, here is what we can and cannot say. TDI's home insurance guide lists damage to foundations or slabs as an available endorsement, which means it is not base coverage. That is sourced. The further proposition that Texas forms pay for resulting damage but not for repairing the leaking pipe itself, and the related question of tear-out and access coverage, is not addressed in any TDI publication we could find. We are not going to assert it. If that question matters to your house, it has to be answered from your specific policy form, and that is a conversation with your agent holding the actual document.

Sewer and drain backup is not in the base policy

TDI's home insurance guide lists backup of sewers or drains among the coverages you add, not among the coverages you have.

Ask whether water-backup coverage is available, which events it addresses, and its limit, deductible, and premium. A general description cannot promise eligibility or savings.

Earth movement, and earthquake

TDI's guide lists earthquakes or earth movement among what most policies do not cover, and notes earthquake damage is available as an endorsement from some companies.

Earth movement is broader than earthquake. It is the category that soil movement, settling, and subsidence tend to land in, which in North and Central Texas is not a theoretical concern.

Wear, tear, and maintenance

TDI's guide lists wear and tear, and its 2018 report lists wear and tear or maintenance.

The roof version of this is the one that produces arguments. TDI's roof page, last updated April 1, 2026, states it plainly: your insurance company will not pay for a new roof just because it is old or worn out.

The page then sets out the valuation difference. Some policies pay up to the full cost to repair your roof at current prices, which is replacement cost coverage. Some pay less if the roof is older or showing wear, which is actual cash value coverage. And the sentence worth highlighting: as roofs age, some companies will switch to actual cash value. TDI also notes that with replacement cost coverage, the company pays with two checks.

That switch can happen at a renewal without a conversation. On a Texas coastal or hail-exposed home, an actual cash value roof schedule can be the difference between a repaired roof and a large personal expense. TWIA's own filed forms include one titled replacement cost coverage on Coverage A with actual cash value roofs, so this structure is real and documented in Texas.

TDI's guide gives the arithmetic for what actual cash value costs you. On a 10-year-old roof costing $10,000 to replace with a $2,000 deductible, replacement cost pays $8,000, while actual cash value pays about $5,000, based on an estimated $7,000 depreciated value. Our replacement cost versus actual cash value explainer walks through how it lands on a claim.

Pests

TDI's guide lists termites or other insects, rats or mice, and its 2018 report lists termites, insects, rats, or mice. TDI's FAQ is blunter: if rodents and insects chew on your house, your policy will not pay for the repairs.

This is not an endorsement gap. It is a maintenance problem the policy was never designed to solve.

Mold and remediation records

Mold treatment depends on its cause and the policy. TDI distinguishes repairing mold damage associated with a covered loss from broader cleanup, testing, or remediation that may need added coverage. Homeowners insurance does not become flood insurance because flooding produces mold.

Ask which water-loss causes are covered, whether mold testing and cleanup have a separate limit, and what duties apply after discovery. Stop ongoing moisture safely, report the loss promptly, and retain photographs and repair records. Do not delay necessary mitigation while waiting for a coverage answer.

Where licensed mold remediation is required, keep the assessment, remediation certificate, and evidence that the moisture source was fixed. Texas Insurance Code Section 544.303 restricts certain underwriting decisions based on prior mold damage when specified remediation or assessment conditions are satisfied. It is not a blanket guarantee of renewal or of payment for a future mold loss.

Vacancy

TDI's guide states that losses during a vacancy longer than your policy's stated number of days are also typically excluded.

Note the phrasing: your policy's stated number of days. The number is not uniform across Texas forms, and we have seen TDI's own rulemaking records document a 30-day clock on one Texas dwelling form where the promulgated form used 60. If a property is going to sit empty, whether between tenants, during a renovation, or while an estate is settled, that is a call to your agent rather than something to find out afterward.

Trees, fences, and food

Three small items that come up after every Texas storm.

Trees and shrubs. Wind and hail damage to trees and shrubs is excluded, per both TDI's guide and its 2018 report. On removal, TDI says many policies provide some coverage to remove trees or limbs that fell due to storm damage, but trees or limbs that fall in your yard without damaging the house or blocking the driveway are usually not covered. TDI states no dollar limit, so check yours.

Fences. Coverage for fences is usually limited to actual cash value, meaning depreciation is deducted and the deductible applies. After a windstorm, a depreciated fence claim net of deductible frequently comes to nothing.

Food spoilage. This one is actually covered. TDI states that most policies will pay up to $500 for food that spoiled because of a power failure caused by something your policy covers, and its disaster FAQ says up to $500 or more, often with no deductible. Note the qualifier: the power failure has to be caused by something your policy covers.

And a related limit: a power outage alone does not trigger additional living expenses.

On the coast, wind and hail may not be in the policy at all

TDI states that if you live on the Texas coast or in Harris County on Galveston Bay, your home policy might not cover wind and hail damage.

If wind and hail are excluded, ask about private wind coverage or TWIA where eligible. Coastal location does not make TWIA the only possible provider. Building certificates and exceptions need an address-specific check.

What additional living expenses actually pays

Worth including here because the limit surprises people during a long repair.

TDI's additional living expenses page states that most policies pay 10 to 20 percent of what your house is insured for, with the example of 10 percent of a $200,000 dwelling limit being $20,000, and that policies usually pay up to 12 months or until you have used your 10 to 20 percent. TDI's guide adds that if the dollar limits run out before repairs finish, you pay the rest, and advises watching your expenses so you do not run out.

Work out what 10 percent of your dwelling limit represents in months of rent in your area. For many Texas homeowners after a regional catastrophe, when rental supply tightens and contractors are backed up, that figure is thinner than it looks.

The gaps worth closing

TDI's guide lists these endorsements in its own words:

• Jewelry, fine arts, or electronics coverage
• Backup of sewers or drains
• Damage to foundations or slabs
• Extra construction or repair costs to meet local building codes, which is ordinance or law coverage
• Extra rebuilding costs if the policy's limit is insufficient
• Mold removal
• Earthquake damage

Plus, from TDI elsewhere: a separate flood policy, comprehensive auto coverage, which TDI notes covers hail, wind, fire, and flood, and renters insurance for tenants, since a landlord's insurance covers the rented building and not your personal items.

For jewelry, art, or other expensive items, compare the policy's per-item, category, and theft limits with current values. Obtain an appraisal where required and ask about separate scheduled coverage.

If standard-market coverage is unavailable, ask about current eligibility for the Texas FAIR Plan or other appropriate alternatives. Limited-market coverage still requires a careful review of insured perils, wind, flood, liability, and deductibles.

Your Consumer Bill of Rights

Use TDI's Consumer Bills of Rights page for the current summary. Your insurer must supply the applicable version. The document describes rights but is not your coverage contract.

The 2026 revision is adopted, with mandatory distribution beginning January 1, 2027 and a transition allowing the preceding version before then. Underlying statutes determine the rights themselves. A proposed or guessed PDF address is not proof of the applicable version.

Request a complete policy and written explanations of denials, cancellation, or nonrenewal. Keep claim notices, information requests, and responses. Rules differ for surplus lines, TWIA, and NFIP; check each policy separately.

TDI's consumer line is 800-252-3439 and OPIC's is 877-611-6742. Asking for assistance does not stop dispute or lawsuit deadlines.

Checklist

• Which form do you have, a named-perils HO-A, or an HO-B or HO-C on an all-risk basis for the building?
• Do you have flood coverage, and is the 30-day waiting period already behind you?
• Do you carry a water backup endorsement?
• Do you carry foundation or slab coverage, which is not base coverage in Texas?
• Do you carry ordinance or law coverage for code upgrades?
• Is your roof on replacement cost or actual cash value, and has that changed at a renewal without your noticing?
• Is your additional living expense limit enough for a long repair in your area?
• Are jewelry, firearms, art, and collections scheduled, or sitting inside a general limit?
• What is your policy's vacancy period, and does any property you own risk crossing it?
• If you have had mold remediated, do you hold the certificate under Occupations Code Section 1958.154 that triggers the Section 544.303 underwriting protection?
• Have you asked for a complete copy of your policy, which the Consumer Bill of Rights entitles you to at any time?

Frequently asked questions

What does a Texas home policy commonly exclude?

Flood, maintenance and wear, gradual leakage, earth movement, and pests are common gaps. The actual form can provide exceptions or optional coverage.

Is sudden water damage covered?

It may be, if the cause and policy terms qualify. Gradual leakage, the pipe repair, access, and resulting damage can be treated differently. Read the actual water provisions.

Are slab and foundation problems always excluded?

No single answer applies. Cause, base form, and endorsements matter. Ask about foundation, slab, and plumbing-access treatment rather than assuming all such damage is covered or excluded.

Will insurance replace a roof just because it is old?

Generally no. A covered cause of damage is required; settlement may also be depreciated, scheduled, or subject to a separate deductible.

Is mold always excluded from flood coverage?

No universal conclusion is appropriate. NFIP generally excludes preventable mold, but circumstances and policy provisions matter. Document mitigation and ask the adjuster.

Where can I find my Texas policyholder rights?

Use TDI's Consumer Bills of Rights page and the version supplied by the insurer. The adopted 2026 summary has mandatory distribution beginning January 1, 2027, with transitional use before then.

Where Argo fits

Bring your declarations and full policy, including endorsements, so Argo can compare the gaps discussed here with your actual water, roof, liability, and rebuilding protection.

Request an insurance policy review to compare your options.

This is general information about insurance and is not legal advice. Texas homeowners forms are company-filed and vary, exclusions and endorsements differ by carrier, and the policy issued controls. Read your own policy or ask your agent for the exact terms.