Just Bought a Home in Kyle or Buda? Your First-Time Buyer's Insurance Guide
Your First-Time Buyer's Insurance Guide
Welcome to the neighborhood! Congratulations on closing on your new home in Kyle or Buda. You’ve officially joined one of the fastest-growing communities in the entire country, and we’re thrilled to have you here.
As you unpack those last few boxes, you’re probably staring at a mountain of "new homeowner" paperwork. One of the most important—and most confusing—is your homeowners insurance policy.
You bought it, your lender approved it, so you're all set, right?
Maybe not.
At San Marcos Insurance Agency, we see first-time homebuyers make the same honest mistakes every year. Your mortgage lender only cares about one thing: that you have enough insurance to pay back their loan if the house burns down.
They don't care if your new furniture is covered, if you have enough liability protection, or if you're covered for the specific risks we face here in Hays County. As your local agents, we do.
Here is your first-time buyer's guide to what your policy really needs.
1. "Lender Coverage" vs. "Smart Coverage"
Your lender's minimum requirement is not a recommendation. It's a legal requirement to protect their asset.
Lender Coverage (Dwelling): Protects the physical structure of the house.
Smart Coverage (What you need):
Personal Property: Covers everything inside your house—furniture, clothes, electronics, etc.
Liability: Protects you financially if someone is injured on your property. This is a non-negotiable.
Loss of Use: Pays for your hotel and living expenses if you're forced to move out during a major repair.
The takeaway: Never settle for the bare minimum. Your policy needs to protect you, not just the bank.
2. The Big Texas Surprise: The "Wind & Hail" Deductible
This is the single biggest "gotcha" on a Texas insurance policy. You probably have two deductibles, and they are not the same:
All Other Peril Deductible: A flat dollar amount (e.g., $2,500) for claims like fire or a burst pipe.
Wind & Hail Deductible: A percentage of your home's total insured value (e.g., 1% or 2%).
Let's do the math. If your home is insured for $350,000:
A 1% deductible = $3,500 A 2% deductible = $7,000
That's the amount you pay out-of-pocket before insurance pays a dime for wind or hail damage. After the nasty storms that hit Kyle back in May, thousands of new homeowners were shocked to learn their "cheap" policy came with a $7,000 deductible. We can help you find the right balance between premium and deductible so you aren't stuck with a bill you can't pay.
3. Flood Insurance is NOT Included
Please read this twice: Your homeowners insurance policy does NOT cover damage from flooding.
It doesn't matter if it's from a hurricane, heavy rain, or a river overflowing. We live in "Flash Flood Alley." The devastating July floods along the Guadalupe River were a tragic reminder that "low-risk" does not mean "no-risk."
Even if you aren't in a "high-risk" flood zone, you need to consider flood insurance. A few inches of water from an overflowing Onion Creek or a backed-up drainage system can cause tens of thousands of dollars in damage. A policy from the National Flood Insurance Program (NFIP) is a small price to pay for that kind of peace of mind.
4. The "Must-Have" Add-Ons for Hays County
A standard policy is a starting point. Here are the two endorsements (add-ons) we urge every new homeowner in this area to get.
Water Backup Coverage: Your policy doesn't cover damage from a sewer or drain backing up into your house. This cheap endorsement adds that coverage back in. Don't skip it.
Foundation Coverage: Remember that Hill Country blog? We have expansive clay soil. It swells when wet and shrinks when dry, which cracks foundations and makes doors stick. Standard policies often exclude this "earth movement." A foundation endorsement can provide limited, but vital, coverage.
We're Here to Help
You've made a huge investment in this community. Our job is to help you protect it.
Before you get too settled, let's do a quick, 15-minute review of the policy you bought. It costs you nothing, and you'll walk away knowing exactly what you're paying for and where your gaps are.
Contact San Marcos Insurance Agency today for a free, no-obligation policy review. Welcome to Hays County!
