Homeowners insurance in Texas: HO-A to HO-C, hail, TWIA and slab claims

HO-A, HO-B and HO-C: which Texas form do you have?

TDI's Texas Homeowners Policies report maps the historic Texas forms onto their national equivalents. Since 2003 insurers file their own forms under Senate Bill 14, but agents and underwriters still describe policies using these labels, and the coverage differences are real.

The practical difference: on a named-peril form the burden is on you to show the loss came from a listed cause, while on an open-perils dwelling form the burden shifts to the insurer to show an exclusion applies. If price shopping produced a quote hundreds of dollars below the others, check whether it is an HO-A before you celebrate.

TDI's home insurance consumer guide lists the exclusions common to every Texas form: flood, earth movement, wear and tear, mold, fungus and rot, insects and vermin, and continuous or repeated seepage. Read what homeowners insurance covers for the six standard coverage parts, then compare the actual declarations pages rather than the summary quotes.

Wind, hail and named-storm deductibles

Most Texas policies now carry a separate percentage deductible for wind and hail losses, typically 1 percent, 2 percent or 5 percent of the Coverage A dwelling limit, alongside a flat deductible for everything else. On the coast, that same structure is often written as a named-storm or hurricane deductible instead.

• Check which perils the percentage applies to. Some Texas forms apply the percentage to wind and hail generally; coastal forms often restrict it to named storms, leaving ordinary hail under the flat deductible. That is a large practical difference in Dallas or Amarillo.
• Confirm roof settlement basis. Replacement cost versus actual cash value on the roof changes the value of the coverage far more than a few hundred dollars of premium.
• Ask whether a cosmetic damage exclusion applies. Some hail-country forms exclude cosmetic marring of metal roofing and siding, meaning dents that do not cause leaks are not paid.
• Recalculate the dollar figure at every renewal. When inflation guard raises Coverage A, your percentage deductible rises with it automatically.

TWIA: windstorm coverage on the Texas coast

In the 14 first-tier coastal counties, many private carriers exclude windstorm and hail, and the coverage is written instead by the Texas Windstorm Insurance Association, the residual market created under Insurance Code Chapter 2210. TDI's TWIA overview for the quarter ending December 31, 2025 shows $126.46 billion of direct insurance in force, concentrated in Galveston at $42.20 billion, Brazoria at $25.21 billion, Nueces at $21.89 billion and Jefferson at $12.69 billion.

Two features make TWIA distinctive. It does not use credit scoring and it does not use territorial rating within its service area, so two homes in different coastal counties pay from the same rate structure. It does give premium credits for structures built or repaired to recent windstorm building code standards, which is why the certificate of compliance from an appointed engineer or inspector matters so much on the coast. TWIA's rates page notes its annual rate filing is due each August 15 and that its 2026 rate adequacy analysis found residential rates adequate by 9 percent and commercial by 4 percent.

The catastrophe history is the reason for the caution: Hurricane Ike produced roughly $2.6 billion of TWIA losses, Harvey $1.7 billion and Beryl $545 million, and Ike triggered $430 million of member assessments. If you are buying on the coast, price the homeowners policy and the windstorm policy together, and remember that neither one covers flood.

Slab foundations, water damage and what is actually covered

Texas has a large stock of slab-on-grade housing over expansive clay soils, which produces a category of claim that surprises homeowners. TDI's consumer guide draws the line clearly: a sudden and accidental water release, such as a pipe that bursts, is generally covered, while continuous or repeated seepage over weeks is generally not, and mold removal is typically excluded.

• Foundation damage from a plumbing leak is usually an endorsement. TDI order CO-03-0110 approved an endorsement providing up to $15,000 for damage to a slab or foundation caused by accidental discharge or continuous and repeated seepage from a plumbing system.
• Foundation movement from soil conditions is not covered. Earth movement is excluded on every Texas form. Drought-driven settlement and heave are maintenance and drainage problems, not insurance claims.
• Sewer and drain backup needs its own endorsement. It is one of the most commonly added and most commonly omitted Texas endorsements.
• Freeze losses are covered, with conditions. Most forms require reasonable care to maintain heat or to shut off and drain the system in a vacant home. Texas insurers paid $1.61 billion in water and freeze losses in 2024.
• Slow leaks are the classic denial. Under-slab supply lines can leak for months. Annual pressure testing and a leak-detection device are cheaper than the deductible plus the excluded portion.

Related reading: how much homeowners insurance you need and do I need flood insurance, which matters throughout the Houston metro regardless of your flood zone designation.

PolicySherpas is licensed in Texas and is compensated by the carrier when a policy is placed, never by you. Every premium figure on this page is an illustration drawn from TDI, TWIA and published market data rather than an offer of insurance; your Texas rate is determined by the insurer using its TDI-approved form and current rate filing.