Buying a Home in the Dallas Suburbs? Here’s Why Insurance Matters
If you’ve just purchased a home in Plano, McKinney, Allen, Celina, Prosper, or Richardson, one of your first to-dos is securing home insurance. Yet many homeowners don’t realize what their policy actually covers until they need it.
At The Sterling Insurance Group, we answer these questions every day for Dallas-area families. This guide breaks down what a standard homeowners policy includes, what it often leaves out, and how you can close those gaps before something unexpected happens.
Why Home Insurance is Essential in North Texas
Your house is probably your biggest financial investment and life in North Texas comes with its share of questions and curveball’s.
From hailstorms to sudden hot water tank leaks, or kitchen fires, emergencies can strike without warning. With property values in the Dallas suburbs climbing, having the right protection in place isn’t optional. it’s essential.
Yes, your mortgage lender may require home insurance, but beyond that, a strong policy gives you peace of mind knowing you’re financially prepared for the unexpected. Remember, a mortgage broker is here to help you qualify for your home through the banking process, your mortgage broker won’t look at coverages to help you get the best coverage to suit your needs.
What a Standard Homeowners Policy Usually Covers
Most homeowners in Texas carry what’s known as an HO-3 policy, the most common type for single-family homes. This type of coverage typically includes six main parts:
1. Dwelling Coverage (Coverage A)
Protects the structure of your home—roof, walls, foundation, built-in appliances—from covered risks such as:
- Fire and smoke
- Hail or windstorms
- Lightning
- Explosions
- Theft and vandalism
- Falling objects (like tree limbs)
Note: Dwelling coverage is based on replacement cost, not market value. In the Dallas suburbs, where construction costs continue to rise, getting this number right ensures you won’t be left underinsured. Most policies will include an additional coverage of up to 25% of the dwelling value that will give you extra protection in the event of a catastrophic loss. This can be very valuable in the event of a tornado or a large loss that spans multiple areas.
2. Other Structures (Coverage B)
Applies to detached features like:
- Fences
- Outdoor Kitchens
- Garages
- Driveways or patios
- Sheds
This is usually set at about 10% of your dwelling coverage, but you can increase it if you have significant outdoor structures or outside kitchens that you want to make sure are protected.
3. Personal Property (Coverage C)
This covers your belongings. This is your furniture, washer, dryer, clothing, electronics, kitchenware, if damaged or stolen. Think of this coverage as anything you would take with you if you would move out.
Items like jewelry, fine art, or firearms often have limits, so many homeowners choose a scheduled property endorsement for full coverage. Most of the time this coverage is capped at $2500 per item. So, if you have jewelry, art, or collections of any kind, make sure to discuss that with your agent so we can make sure you have coverage if those items are stolen, or damaged.
4. Loss of Use (Coverage D)
What that means, is that this coverage will put you in a hotel or allow you to rent a home or space if you can’t live in your home due to a covered loss. In may situations, it can also pay to board animals, reimburse you for having to eat out and more. Examples include:
- Hotel stays
- Restaurant meals
- Laundry services
This has been especially valuable for families in Plano and McKinney after storm damage forced temporary relocation and when the ice storms hit Dallas in 2020 and 2022, this coverage helped families get into hotels if their pipes burst due to the cold weather.
5. Personal Liability (Coverage E)
Protects you if someone is injured on your property or if you accidentally cause damage elsewhere. Examples:
- A guest slips on your icy front walk
- Your child accidentally breaks a neighbor’s window
We often recommend at least $500,000 in liability protection for Dallas-area homeowners. This coverage is typically around $20-$30 per year and is worth the money if someone is hurt on your property.
6. Medical Payments to Others (Coverage F)
Covers smaller medical bills for guests injured on your property, regardless of fault. This is a no fault coverage so that if someone slips and falls in your kitchen, it will cover an ambulance ride, basic scans and or some basic care before the claim turns into a liability claim. Typical limits are $5,000.
Common Exclusions and Gaps in Coverage
Knowing what your policy doesn’t cover is just as important as knowing what it does.
Usually Excluded:
- Flood damage (requires separate flood insurance)
- Earthquakes or earth movement
- Wear and tear or poor maintenance
- Pest or termite or rodent damage
- Sewer backup (can often be added with an endorsement)
- Business inventory kept at home
Local Considerations:
North Texas storms can bring sudden flash flooding, even in areas not marked as high-risk zones. We often recommend low-cost flood coverage for added protection.
And with the clay-heavy soil in many Dallas suburbs, foundation shifting is a common issue. Some insurers offer special endorsements for this type of risk but please note, the foundation coverage does not fix your foundation when it slips or dips, it only provides coverage for the pipes inside the foundation if they burst and start leaking water out under the foundation or if the water comes up through your floors and damages your home. The foundation itself is not covered in a home policy but the damage due to a pipe burst in the foundation is what is covered in this type of policy.
What About Roof Coverage?
Roofing claims are the #1 claim in Texas. So, that makes this is a big question for Texas homeowners. Roof coverage often depends on:
- The roof’s age
- The cause of damage (hail vs. wear and tear)
- Whether your policy pays replacement cost or actual cash value
We advise reviewing your roof coverage every year, especially after severe hail seasons—to avoid unpleasant surprises when you need repairs. Also, please note that roof coverage does not extend to basic wear and tear of your roof over time. It also does not extend to damage from tree limbs that impact the age and integrity of your roof.
Optional Add-Ons Worth Considering
Every household is different, and additional coverage can make sense depending on your needs:
- Water Backup Coverage – Protects against damage from a backed-up drain or sump pump.
- Equipment Breakdown – Covers big-ticket systems like HVACs or refrigerators with a minimal deductible.
- Scheduled Personal Property – Provides full coverage for high-value items like engagement rings, collectibles, or antiques.
- Extended or Guaranteed Replacement Cost – Helps cover construction cost spikes after disasters.
- Service Line Coverage – Pays for damage to underground pipes or wiring between your home and the street.
Filing a Home Insurance Claim
Here’s what usually happens when you file a claim:
- Document the damage with photos and video.
- Call your agent to review whether filing makes sense.
- Submit the claim to your insurance carrier.
- An adjuster visits to assess the damage.
- You receive repair estimates and payment.
Many of our clients in Prosper and Richardson have avoided delays simply by checking in with us first before contacting their carrier. We will help you to assess if the loss is under your deductible and help you avoid a zero pay claim which will stay on your record for 5 years.
Why Work With The Sterling Insurance Group in the Dallas Area and Throughout Texas
We’re not a call center. We live and work in the Dallas area, and we know the risks homeowners here face.
Here’s how we help:
- Annual reviews to make sure your coverage stays accurate
- Straightforward explanations of what’s included (and what’s not)
- Fast, local support after storms and emergencies
- Multiple quotes from top-rated carriers to fit your budget
Home insurance shouldn’t be confusing. We believe Dallas-area families deserve clear answers and strong protection.
Final Thoughts: Protect Your Home With Confidence
Whether you’re a first-time buyer in Celina or have lived in Plano for decades, knowing what your home insurance actually covers helps you avoid unpleasant surprises.
At The Sterling Insurance Group, we’ll walk through your policy with you, identify any gaps, and make sure you’ve got the right coverage for your life and your zip code.
Get Your Dallas-Area Home Insurance Review Today
Call: (972) 964-4825
Visit: https://www.sterlinginsnow.com