Actual Cash Value (ACV)
The depreciated value of your property at the time of a loss. ACV pays replacement cost minus depreciation for age and wear. On a 12-year-old composition shingle roof costing $20,000 to replace, ACV typically pays $5,000 to $8,000 minus your wind/hail deductible. The carrier keeps the depreciation. You make up the difference.
Why It Matters ACV is the default valuation method on most carrier-rewritten roof endorsements at renewal. The premium drops slightly. The claim payout drops dramatically. Texas carriers in 2026 are aggressively converting roof coverage from RCV to ACV without flagging the change clearly on the dec page.
Charles in Plain English
ACV pays for the age. RCV pays for the rebuild.
Source: Texas Department of Insurance, Replacement Cost vs Actual Cash Value Guide
Related Replacement Cost Value (RCV) Depreciation Roof Payment Schedule
Adjuster
The carrier representative who investigates a claim, estimates the loss, and determines what the policy pays. Adjusters work for the carrier, not for you. Field adjusters inspect property in person. Desk adjusters review documentation remotely. Independent adjusters work as third-party contractors for multiple carriers.
Why It Matters The adjuster's estimate is the starting point of every claim conversation. Most homeowners accept the first estimate without question. McDade reviews adjuster estimates against current Houston repair market rates and flags gaps before settlement.
Related Public Adjuster Proof of Loss Claim
All Other Perils Deductible
The flat dollar deductible applied to any covered loss that is not wind, hail, or named storm. Typically $1,000 to $2,500 in Texas. Applies to fire, theft, vandalism, water damage, lightning, and other non-wind perils. Often abbreviated "AOP" on the dec page.
Why It Matters A higher AOP deductible lowers premium but increases out-of-pocket on the most common claims (water, fire, theft). The right AOP matches your household emergency savings, not the lowest premium option.
Related Deductible Wind/Hail Deductible Hurricane Deductible
Animal Liability Exclusion
An endorsement that removes coverage for dog bites and certain animal-related injury claims from your personal liability protection. Some Texas carriers maintain a list of restricted breeds (Pit Bulls, Rottweilers, Dobermans, German Shepherds, Wolf Hybrids, and others) that trigger automatic exclusion. Other carriers exclude animal liability entirely at renewal.
Why It Matters A single dog bite claim averages $58,000+ nationally. If your carrier added an Animal Liability Exclusion at renewal and you have a dog, you may have zero coverage for one of the most common Texas household liability claims.
Related Coverage E (Personal Liability) Endorsement
Cancellation
The carrier ending your policy mid-term. Texas Department of Insurance rules govern when and how a carrier may cancel. Common cancellation reasons include non-payment, fraud, material misrepresentation, and substantial increase in risk. Most cancellations require advance written notice, with the notice window varying by reason.
Why It Matters Cancellation is different from non-renewal. Cancellation ends coverage now. Non-renewal ends coverage at the end of the current term. Both can affect your insurance score with new carriers.
Related Non-Renewal Lapse Texas Department of Insurance (TDI)
Claim
A formal request to the carrier for payment under the policy after a covered loss. Filing a claim begins the adjuster process and is recorded in your CLUE Report, where it stays for seven years. Claims affect future underwriting, future premium, and eligibility for claim-free discounts.
Why It Matters Not every loss should be a claim. The 1.5x to 2x deductible rule applies to home claims as it does to auto. McDade discusses claim strategy with clients before the claim is filed, not after.
Related CLUE Report Claim-Free Discount Proof of Loss
Claim-Free Discount
A premium reduction for going a defined period (typically 3 to 5 years) without filing a claim. Carrier discount structures vary widely. Some carriers reset the discount silently after a non-claim policy review or carrier change.
Why It Matters Discounts disappear quietly. The premium goes up at renewal and most homeowners assume it is just the market. Audit your discount stack at every renewal to confirm what you are still receiving and what dropped.
Related Loyalty Discount Claim
CLUE Report
Comprehensive Loss Underwriting Exchange. A LexisNexis database that records property insurance claims for seven years. Carriers pull CLUE reports during underwriting at new business and at certain renewals. Claims appear on your CLUE report, on the property's CLUE report, or both.
Why It Matters A claim filed today can affect underwriting decisions seven years from now. CLUE reports also follow the property: claims filed by a previous owner can affect your eligibility on the same address.
Related Claim Underwriting
Cosmetic Damage Exclusion
An endorsement that excludes hail or weather damage to roofs, siding, or other surfaces when the damage does not affect function, even when resale value drops. Most often applied to metal roofs and metal siding where hail leaves dimples but does not penetrate.
Why It Matters A metal roof with significant hail damage can require full replacement to restore curb appeal and resale value, but a Cosmetic Damage Exclusion may leave the carrier with no obligation. Increasingly common at renewal in Texas.
Related Roof Payment Schedule Roof Surfacing Endorsement Endorsement
Coverage A (Dwelling)
The dollar amount the policy pays to rebuild your home after a covered loss. Coverage A should match current rebuild cost, not market value. Rebuild cost includes materials, labor, debris removal, and permits to restore the home to its pre-loss condition. Texas construction costs have risen 25% to 40% since 2019.
Why It Matters Most renewals adjust Coverage A by a 2% to 4% inflation guard, which has not kept pace with actual Texas construction inflation. Homes insured at $400,000 in 2020 may now require $500,000 to $560,000 to rebuild, leaving the gap as your exposure.
Audit Your Dec Page
Compare Coverage A to a current rebuild cost estimate. If your dwelling limit has not been recalculated in 5+ years, you are likely underinsured.
Related Inflation Guard Extended Replacement Cost Replacement Cost Value (RCV)
Coverage B (Other Structures)
Covers detached structures on your property: garage, fence, shed, pool deck, gazebo, workshop, detached pergola. Typically set at 10% of Coverage A by default. Many high-end Houston properties have detached features that exceed the default 10% allocation.
Why It Matters A property with a $300,000 dwelling and a $40,000 detached pool house plus $15,000 perimeter fence has $55,000 in other structures exposure but only $30,000 in default Coverage B. The gap comes out of your pocket.
Related Coverage A (Dwelling)
Coverage C (Personal Property)
Your belongings inside the home: furniture, electronics, clothing, kitchenware, linens, decor. Typically 50% to 75% of Coverage A. Subject to sublimits for jewelry, art, firearms, electronics, business property, collectibles, and cash. The full Coverage C limit does not apply to those specific categories.
Why It Matters A $250,000 Coverage C limit may include a $1,500 jewelry sublimit. A high-end Houston household with $40,000 in jewelry recovers only $1,500 of it on a covered loss. Schedule the jewelry. Schedule the firearms. Schedule the art.
Related Scheduled Personal Property Sublimit
Coverage D (Loss of Use)
Also called Additional Living Expenses (ALE). Pays for hotel, rental housing, restaurant meals beyond normal household costs, and other expenses while your home is uninhabitable due to a covered loss. Often 10% to 20% of Coverage A.
Why It Matters Houston rental housing in a comparable neighborhood after a major loss can run $4,000 to $10,000+ per month. Major rebuilds routinely run 12 to 18 months. A 10% Coverage D on a $500,000 dwelling is $50,000, which may not cover a year in temporary housing for a high-end household.
Related Coverage A (Dwelling)
Coverage E (Personal Liability)
Pays for bodily injury or property damage to others for which you are legally responsible. Default limits often start at $100,000 to $300,000. Coverage E follows you off the property: a child injuring a friend at a park, a pet biting a stranger, a guest slipping on your steps.
Why It Matters A serious injury claim on a high-asset household routinely exceeds $300,000. Established Homeowners typically need $500,000 to $1 million in Coverage E plus a personal umbrella policy of $1 million to $5 million.
Related Bodily Injury Coverage F (Medical Payments) Animal Liability Exclusion
Coverage F (Medical Payments)
Pays minor medical bills for guests injured on your property regardless of fault. Typically $1,000 to $10,000. Designed to settle small injury claims (a stitch from a slip, a sprain from a fall) before they escalate into Coverage E lawsuits.
Why It Matters Coverage F does not require lawsuit or proof of fault. Carriers pay it quickly to keep small incidents from becoming legal battles. The standard $1,000 limit is often too low for modern medical costs.
Related Coverage E (Personal Liability) Bodily Injury
Declarations Page (Dec Page)
The summary front page of your policy. Lists the named insured, dwelling limit, all coverage limits, deductibles, endorsements, discounts, and premium. Your dec page is the audit document at every renewal. Compare this year's dec page to last year's line by line to find what changed.
Why It Matters The dec page is the only document most homeowners ever see. Reading it correctly is the difference between knowing what you own and trusting that someone else read the policy for you.
Charles in Plain English
Two dec pages. Side by side. That is a renewal review.
Related Endorsement Renewal
Deductible
The amount you pay out of pocket before the carrier pays anything on a covered loss. Texas home policies typically carry three separate deductibles: All Other Perils, Wind/Hail, and Named Storm. Each applies to its specific peril type.
Why It Matters Higher deductibles lower premium. The savings are real. The right deductible matches household emergency savings, not the lowest available premium. A $5,000 deductible saves $400 per year and exposes you to $5,000 on every claim.
Related All Other Perils Deductible Wind/Hail Deductible Hurricane Deductible Percentage Deductible
Depreciation
The reduction in value of property over time due to age, wear, and obsolescence. Depreciation is what separates ACV (depreciated payout) from RCV (full replacement payout). On a 12-year-old roof, depreciation can represent 50% to 70% of the replacement cost.
Why It Matters Depreciation is how carriers reduce roof claim payouts under ACV or Roof Payment Schedule endorsements. The math is rarely shown clearly to homeowners until claim time.
Related Actual Cash Value (ACV) Replacement Cost Value (RCV) Recoverable Depreciation
Effective Date
The date your policy coverage begins. Anything before the effective date is not covered. Anything after the renewal expiration date is not covered unless renewed. Effective dates appear on the dec page along with the policy expiration date.
Why It Matters A loss one day before effective date is uncovered. A loss one day after expiration is uncovered. Continuous coverage matters. Lapses hurt insurance scoring and can trigger lender-placed insurance on financed homes.
Related Renewal Lapse
Endorsement
A formal modification to your policy that adds, removes, or changes coverage. Endorsements appear on the dec page by code. Some endorsements add coverage (Water Backup, Service Line, Scheduled Personal Property). Some endorsements remove coverage (Cosmetic Damage Exclusion, Animal Liability Exclusion, Roof Payment Schedule).
Why It Matters Most homeowners see "endorsement" on the dec page and assume it was added for their benefit. Often the opposite. Every new endorsement at renewal deserves a one-sentence explanation from your agent.
Related Cosmetic Damage Exclusion Animal Liability Exclusion Water Backup Endorsement Scheduled Personal Property
Equipment Breakdown Coverage
An endorsement covering mechanical or electrical breakdown of home systems and appliances: HVAC compressors, water heaters, pool equipment, smart home electronics, well pumps, refrigerators, washing machines. Often a $50 to $75 annual add-on with limits of $50,000 to $100,000.
Why It Matters Standard home policies exclude mechanical breakdown. A $9,000 HVAC system failure that is not caused by a covered peril (fire, lightning) leaves you paying for the replacement. Equipment Breakdown closes that gap for a small premium.
Related Endorsement
Extended Replacement Cost
An endorsement that pays an additional 25% to 50% above your dwelling limit when actual rebuild costs exceed the policy limit due to materials inflation or labor shortages. Extended Replacement Cost is the practical answer to Texas construction cost volatility.
Why It Matters Texas construction costs have outpaced inflation guard increases for five straight years. A $400,000 dwelling limit on a home that now costs $500,000 to rebuild leaves a $100,000 gap. A 25% Extended Replacement Cost endorsement closes that gap automatically.
Related Coverage A (Dwelling) Guaranteed Replacement Cost Inflation Guard
HO-3 Policy
The most common Texas home insurance form. Covers the dwelling on an open peril basis (everything except specifically excluded events) and personal property on a named peril basis (only the perils specifically listed). HO-3 is the standard form sold by most carriers as the default product.
Why It Matters HO-3 is the right form for most Texas households. For high-end Established Homeowners with significant personal property, HO-5 typically provides better protection at a small premium difference.
Related HO-5 Policy HO-6 Policy HO-8 Policy
HO-5 Policy
A premium home insurance form that extends open peril coverage to both the dwelling and personal property. Better protection on contents than HO-3, with a typically modest premium difference. Often the right form for Established Homeowners with significant personal property, art, electronics, and collectibles.
Why It Matters On HO-3, you must prove the cause of loss falls within the named perils for personal property. On HO-5, you only need to show the loss occurred and was not specifically excluded. The burden of proof is materially lower at claim time.
Related HO-3 Policy Coverage C (Personal Property)
HO-6 Policy
Condominium owner insurance. Covers personal property, interior unit improvements (cabinets, flooring, fixtures), additions and alterations, and personal liability. The condo association master policy covers the building structure, but the line between association and unit-owner responsibility varies by master policy type and HOA documents.
Why It Matters Houston condo and high-rise unit owners often underinsure under HO-6 by failing to match interior improvement coverage to actual upgrades. A unit with $80,000 in improvements covered by an HO-6 with $25,000 in interior coverage carries a $55,000 personal exposure.
Related HO-3 Policy Coverage A (Dwelling)
HO-8 Policy
A modified home insurance form for older homes where rebuild cost would significantly exceed market value. Pays based on functional replacement rather than full reconstruction with original materials. Commonly used for historic homes or properties where original construction methods would be cost-prohibitive to replicate.
Why It Matters HO-8 is the right form in narrow circumstances. Most Texas homes belong on HO-3 or HO-5. If a carrier moves you to HO-8 at renewal, the change deserves a conversation about why.
Related HO-3 Policy HO-5 Policy
Hurricane Deductible
A separate deductible triggered when a named hurricane causes the loss. Usually expressed as a percentage of Coverage A, typically 1% to 5%. On a $750,000 dwelling, a 2% hurricane deductible is $15,000 out of pocket before coverage applies. On a $1.2 million dwelling, the same 2% is $24,000.
Why It Matters Hurricane deductibles are stacked separately from wind/hail in most Texas policies. A single named storm can trigger the hurricane deductible. A non-named hailstorm triggers wind/hail. Both are typically percentage based.
Related Named Storm Deductible Wind/Hail Deductible Percentage Deductible
Inflation Guard
An automatic annual increase to your dwelling limit, typically 2% to 4% at renewal. Designed to keep Coverage A roughly aligned with construction inflation. The math compounds across renewal cycles.
Why It Matters Texas construction costs have risen 25% to 40% since 2019. A 3% annual inflation guard does not keep pace. The Federal Reserve Bank of Dallas confirmed in 2026 research that Texas homeowners limiting coverage to standard inflation guards are becoming structurally underinsured.
Source: Federal Reserve Bank of Dallas, Texas Homeowners Insurance Affordability Research (2026)
Related Coverage A (Dwelling) Extended Replacement Cost
Inspection
A carrier-ordered review of your property at new business or at certain renewals. Inspectors check roof condition, plumbing, electrical, foundation, and risk hazards (trampolines, pool fences, dog breeds, hazardous trees). Results affect eligibility, premium, and coverage forms.
Why It Matters A carrier inspection that flags an aging roof can trigger a Roof Payment Schedule, an ACV roof endorsement, or non-renewal. McDade reviews carrier inspection results with clients before responding.
Related Texas Inspection Form Underwriting
Insurance Score
A credit-based score carriers use to predict claim likelihood. Higher scores typically mean lower premiums. Insurance scoring is different from a traditional credit score and uses different data weighting. Texas allows insurance scoring with limits set by Texas Insurance Code.
Why It Matters A coverage lapse, a non-renewal, a recent address change, or a new credit account can affect insurance scoring even when traditional credit score remains strong. Continuous coverage and stable accounts protect insurance score over time.
Related Underwriting Lapse
Matching of Materials
A clause governing the carrier's obligation to match siding, roofing, or flooring after a partial loss. When a hailstorm damages one side of a roof, the matching clause determines whether the carrier replaces the entire roof to maintain visual consistency or only the damaged portion.
Why It Matters Many Texas carriers in 2026 cap their matching obligations through endorsement, leaving mismatched repairs on partial losses. A new roof patch on aged shingles is functional but visually obvious and can affect resale value.
Related Endorsement Cosmetic Damage Exclusion
Mold Sublimit
A cap on mold remediation coverage, typically $5,000 or $10,000. Many Texas policies sharply limit or fully exclude mold. Houston humidity makes mold a real exposure on water claims, and remediation costs on a flooded high-end home can run $15,000 to $40,000+.
Why It Matters A water damage claim that includes mold remediation often hits the mold sublimit before the broader water damage limit. The math gets ugly fast on Houston water claims.
Related Sublimit Water Backup Endorsement Slab Leak
Percentage Deductible
A deductible expressed as a percentage of Coverage A rather than a flat dollar amount. Common for wind, hail, hurricane, and named storm in Texas. On a $750,000 dwelling, a 2% deductible is $15,000. On a $1.2 million dwelling, a 2% deductible is $24,000.
Why It Matters The single most expensive renewal-time change in Texas right now is converting wind/hail from flat dollar to percentage. The premium may stay flat or even drop. The out-of-pocket exposure can triple or quadruple. Audit your dec page line by line.
Charles in Plain English
The premium dropped a hundred dollars. The exposure tripled.
Related Wind/Hail Deductible Hurricane Deductible Deductible
Premium
The annual or monthly amount you pay the carrier for coverage. Premium is built from base rate, discounts, surcharges, endorsement costs, and pricing tier eligibility. Two homes with identical coverage can have very different premiums based on insurance score, claim history, roof age, and carrier appetite.
Why It Matters Premium is the headline. Coverage is the contract. A lower premium often means a thinner contract underneath. Every cheaper quote is a quieter promise.
Related Deductible Renewal
Proof of Loss
A sworn statement filed with the carrier documenting the date, cause, and dollar amount of a loss. Texas typically requires Proof of Loss within 91 days of the carrier's request. Failure to file can affect claim payout or trigger denial.
Why It Matters Most homeowners never see or sign a Proof of Loss because the adjuster process completes before it is required. On disputed claims or complex losses, Proof of Loss becomes the formal record of your claim position.
Related Claim Adjuster Public Adjuster
Public Adjuster
A licensed independent adjuster who works for the policyholder, not the carrier. Public adjusters review claims, prepare documentation, negotiate with the carrier adjuster, and pursue larger settlements. They typically charge a percentage of the claim payout (commonly 10% to 20% in Texas, regulated by Texas Insurance Code).
Why It Matters Public adjusters can add significant value on complex or disputed claims. They can also reduce net payout on simple claims where their percentage exceeds the additional settlement they negotiate. McDade discusses public adjuster decisions case by case.
Related Adjuster Claim Texas Department of Insurance (TDI)
Recoverable Depreciation
The portion of a claim payout the carrier holds back until repairs are completed. On an RCV policy, the carrier first pays ACV (replacement cost minus depreciation). Once the work is finished and receipts are submitted, the carrier releases the recoverable depreciation. Total payout equals full RCV.
Why It Matters Cash flow matters on a major loss. The first carrier check (ACV) may not be enough to start repairs on a high-end home. McDade walks clients through the recoverable depreciation timing and how to manage repair contractor cash flow against carrier release schedules.
Related Actual Cash Value (ACV) Replacement Cost Value (RCV) Depreciation
Renewal
The annual cycle when the carrier offers a new policy term. Renewal is the only window when the carrier reopens the contract. Premium can change. Coverage limits can change. Endorsements can be added or removed. Deductibles can be restructured. Audit the renewal before signing it shut for another year.
Why It Matters Auto-renewal is the single biggest source of unnoticed coverage erosion in Texas home insurance today. The premium debits the bank account, the dec page goes in a drawer, and the next claim discovers what was actually signed.
Charles in Plain English
The renewal is the only conversation the carrier offers. Have it before you sign.
Related Declarations Page (Dec Page) Endorsement
Want to audit your renewal? See the McDade Home Renewal Review.
Replacement Cost Value (RCV)
The full cost to rebuild or replace damaged property without deduction for depreciation. RCV is the strongest standard valuation method on a Texas home policy. On a 12-year-old roof, RCV pays the full $20,000 replacement cost minus deductible.
Why It Matters RCV is what most homeowners assume they have. Texas carriers in 2026 are converting RCV roof coverage to ACV or to Roof Payment Schedules at renewal without flagging the change clearly. Confirm RCV in writing on every renewal dec page.
Source: Texas Department of Insurance, Replacement Cost vs ACV Guide
Related Actual Cash Value (ACV) Extended Replacement Cost Guaranteed Replacement Cost
Roof Payment Schedule
A sliding-scale endorsement that reduces roof claim payouts based on roof age. Typical Texas schedule pays 100% of replacement cost for roofs 0 to 5 years old, 80% at 6 to 10 years, 60% at 11 to 15, 40% at 16 to 20, and 20% at 21+ years. On a 15-year-old roof costing $20,000 to replace, the carrier pays $12,000 minus deductible.
Why It Matters The most common renewal-time change in Texas in 2026. Often added without clear notice to the homeowner. The endorsement can convert a roof previously covered at full RCV into one paid on a depreciation schedule. Audit every renewal for this exact endorsement.
Charles in Plain English
The renewal looks the same. The roof you protected is not.
Related Actual Cash Value (ACV) Replacement Cost Value (RCV) Roof Surfacing Endorsement Cosmetic Damage Exclusion
Roof Surfacing Endorsement
An endorsement that limits payouts on the outermost roof layer (shingles, tiles, metal panels) to ACV while keeping RCV on the structure underneath (decking, trusses). Often added at renewal in Texas as a partial step toward full ACV roof coverage.
Why It Matters The endorsement language sounds technical. The practical effect is most roof claim dollars go through the surfacing layer (shingles), so ACV on surfacing produces meaningfully lower claim payouts on hail and wind losses.
Related Roof Payment Schedule Actual Cash Value (ACV) Cosmetic Damage Exclusion
Scheduled Personal Property
An endorsement that lists specific high-value items (jewelry, watches, art, firearms, instruments, collectibles) at agreed values, beyond the standard Coverage C sublimits. Typically requires recent appraisal. Coverage is broader (often agreed value, lower deductible, worldwide coverage) than Coverage C alone.
Why It Matters A $15,000 engagement ring covered under standard Coverage C with a $1,500 jewelry sublimit pays $1,500 minus deductible at theft. The same ring scheduled at $15,000 pays $15,000 with no sublimit and often no deductible.
Related Coverage C (Personal Property) Sublimit Endorsement
Service Line Coverage
An endorsement covering buried utility lines (water, sewer, gas, electric, internet, fiber, cable) running from the street to your home. Typical limits $10,000 to $25,000. Standard policies typically exclude underground utility line failures.
Why It Matters Houston tree root intrusion into sewer lines and water main breaks running under driveways are common Houston repair scenarios. Costs run $5,000 to $20,000 per incident. Service line coverage is typically a $25 to $50 annual add-on for meaningful protection.
Related Endorsement Water Backup Endorsement
Slab Leak
A water leak in plumbing under a concrete slab foundation. Houston slab leak repair often runs $40,000 to $80,000+ on high-end homes due to the need to break the slab, repair plumbing, restore the slab, and rebuild flooring. Coverage depends on policy language and water damage exclusions.
Why It Matters A slab leak is one of the most expensive single Houston home insurance claims. Standard policies often exclude "constant or repeated seepage" but cover sudden and accidental discharge. The line between the two is often disputed at claim time.
Related Foundation Coverage Water Backup Endorsement Mold Sublimit
Subrogation
The carrier's right to pursue recovery from a third party responsible for a loss after paying your claim. If a contractor's negligence caused the water damage, the carrier pays you and then pursues the contractor. Successful subrogation can return your deductible.
Why It Matters Subrogation is invisible to most homeowners but worth understanding. If your carrier successfully subrogates against the at-fault party, you may receive your deductible back as part of the recovery.
Related Claim Deductible
Sublimit
A coverage cap inside a broader limit. Common Coverage C sublimits in Texas: jewelry $1,500, firearms $2,500, electronics $5,000, business property $2,500, cash $200, mold $5,000. The full Coverage C limit does not apply to those specific categories.
Why It Matters Sublimits surprise clients at claim time. The fix is Scheduled Personal Property endorsements that list specific items at appraised value, beyond the sublimits. McDade audits sublimits at every policy review for high-end households with significant personal property.
Related Coverage C (Personal Property) Scheduled Personal Property Mold Sublimit
Texas Department of Insurance (TDI)
The state regulator overseeing insurance in Texas. TDI publishes consumer guides, handles complaints, regulates carrier conduct, and enforces Texas Insurance Code. tdi.texas.gov is the official portal. Consumer Help Line: 1-800-252-3439.
Why It Matters TDI is the right escalation path for unresolved disputes with a carrier. McDade walks clients through TDI complaints when carrier escalation has failed and the matter requires regulatory attention.
Source: Texas Department of Insurance Official Website
Related Cancellation Non-Renewal
Texas FAIR Plan
The Texas Fair Access to Insurance Requirements Plan. A state-created insurer of last resort for homeowners denied coverage in the standard market. Coverage is basic. Premiums are typically higher than standard market. Available only to applicants who have been denied by the voluntary market.
Why It Matters The FAIR Plan is a safety net, not a destination. McDade's job is to keep clients out of the FAIR Plan by placing them in the right standard market carrier through PGI's 220+ carrier relationships. If the FAIR Plan is the only option, we still get the placement done correctly.
Related Texas Department of Insurance (TDI) Texas Windstorm Insurance Association (TWIA)
Texas Inspection Form
A property inspection report carriers may require at new business or renewal documenting roof age and condition, plumbing, electrical, foundation, exterior hazards, and pool or trampoline presence. Results can affect eligibility, premium, roof coverage form (RCV vs ACV), and deductible structure.
Why It Matters A carrier inspection that flags an aging roof, missing pool fence, or hazardous tree can trigger an immediate change to your coverage form, premium, or eligibility. McDade reviews inspection results with clients before responding to the carrier.
Related Inspection Underwriting
Texas Windstorm Insurance Association (TWIA)
The Texas residual market insurer for wind and hail coverage in 14 designated coastal counties: Aransas, Brazoria, Calhoun, Cameron, Chambers, Galveston, Harris (parts), Jefferson, Kenedy, Kleberg, Matagorda, Nueces, Refugio, San Patricio, Willacy. TWIA writes wind/hail only. A separate ex-wind home policy must be paired with TWIA in covered counties.
Why It Matters Coastal Houston-area homeowners often need TWIA for wind/hail plus a standard market homeowners policy with wind/hail excluded for everything else. Two policies. Two deductibles. Two carriers. McDade coordinates the pairing.
Related Texas FAIR Plan Wind/Hail Deductible Hurricane Deductible
Water Backup Endorsement
An endorsement covering damage from sewer or drain backup, sump pump failure, or water backing up through plumbing fixtures. Typical limits $5,000 to $25,000. Standard policies often exclude backup losses without this endorsement.
Why It Matters Houston flat-grade lots, heavy rainstorms, and aging municipal sewer infrastructure make backup losses common. A $15,000 sewer backup loss without the endorsement is a $15,000 personal expense. With the endorsement, it is the deductible.
Related Service Line Coverage Slab Leak Endorsement
Wind/Hail Deductible
A separate deductible applied to losses caused by wind or hail. Increasingly written as a percentage of Coverage A in Texas (1% to 5%). The single most expensive renewal-time change is converting wind/hail from flat dollar to percentage. On a $750,000 dwelling, a 2% wind/hail deductible is $15,000 out of pocket.
Why It Matters Texas led the nation in major hail events in 2024 with 878 documented incidents. The wind/hail deductible is the deductible that activates most often in Texas. Audit the structure (flat vs percentage) and the dollar exposure at every renewal.
Charles in Plain English
Hail finds Texas every year. Make sure the deductible does not find you twice.
Related Hurricane Deductible Named Storm Deductible Percentage Deductible Deductible
