Welcome to Hays County! 5 Insurance Surprises for New Texas Residents

December 31, 2025

Welcome to Hays County! 5 Insurance Surprises for New Texas Residents

Sunrise over a green field with a white barn, fence, and grazing horses.

First off, welcome to Central Texas! Whether you’ve just unpacked in a new Kyle subdivision, a historic home in San Marcos, or a scenic spot in Buda, we’re thrilled to have you.

You’ve probably already discovered our amazing food, beautiful rivers, and... the I-35 traffic. As you get settled, one of the last things on your "to-do" list is likely switching over your insurance.

At San Marcos Insurance Agency, we help new residents "translate" their old policies every single day. We've found that Texas insurance has some unique quirks that can be a major shock to people moving from states like California, New York, or Illinois.

Here are the 5 biggest surprises you need to know about.

1. Surprise #1: The "Wind & Hail" Deductible

This is, without a doubt, the biggest shock for new Texas homeowners.

What you're used to: A single, flat-dollar deductible for all claims (e.g., $1,000).
What you get in Texas: You will likely have two deductibles. Your first is a standard flat-dollar amount for claims like fire or theft. Your second is a percentage deductible specifically for wind and hail damage.

This deductible (usually 1% or 2%) is based on your home's total insured value, not the cost of the damage.

Here's the math:

Your home is insured for $400,000.
You have a 2% wind & hail deductible.
Your deductible is $8,000.

If a hailstorm causes $15,000 in roof damage, you pay the first $8,000, and your insurance pays the remaining $7,000. This is critical to know before the first big storm hits.

2. Surprise #2: "Flash Flood Alley" is Not Just a Nickname

This is a hard-fast rule you must remember: Your homeowners insurance policy does NOT cover damage from flooding.

This isn't a Texas-only rule, but it's more important here than almost anywhere else in the country. We live in "Flash Flood Alley," an area notorious for sudden, dangerous rising water from the Blanco, San Marcos, and Guadalupe Rivers.

Flood damage is defined as water rising from the ground up. This damage is only covered by a separate flood insurance policy, which you can purchase from the National Flood Insurance Program (NFIP) or a private insurer. Even if you're not in a "high-risk" zone, you need to consider it—a significant portion of all flood claims happen in low-to-moderate-risk areas.

3. Surprise #3: Our Uninsured Motorist Problem

You're going to be driving on I-35, which means you'll be sharing the road with a lot of other drivers. Unfortunately, Texas has one of the highest rates of uninsured drivers in the nation, with some estimates as high as 1 in 5 drivers having no insurance at all.

This is why Uninsured/Underinsured Motorist (UM/UIM) coverage is not a place to cut corners. If you are hit by someone with no insurance (or not enough), this coverage pays for:

Your medical bills
Your passengers' medical bills
Lost wages
Pain and suffering

It also protects you in a hit-and-run. Do not, under any circumstances, reject this coverage in Texas.

4. Surprise #4: The State's Dangerously Low Auto Liability Minimums

Texas law only requires drivers to carry 30/60/25 in liability coverage.

$30,000 for bodily injury to one person
$60,000 for bodily injury per accident (no matter how many people)
$25,000 for property damage

Look at the cars in the H-E-B parking lot. How many of them are brand-new trucks or SUVs that cost way more than $25,000? If you cause an accident and total someone's $50,000 truck, your $25,000 minimum policy leaves you with a $25,000 bill to pay out of pocket.

These minimums are dangerously low. We always recommend carrying much higher limits (like 100/300/100) to protect your assets and your future.

5. Surprise #5: We're Your New Local Agent

Moving to a new state means you need a new agent who understands these local risks. As an independent agency, we're not tied to one company. We can take your old coverage, "translate" it, and shop it across multiple top-rated carriers to build a new plan that actually fits your new life in Texas.

Don't wait to find out about these surprises when you file a claim. Contact San Marcos Insurance Agency today for a free, no-obligation "Welcome to Texas" policy review.

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Renters Insurance Won't Cover Flood: You Need a Flood Policy

June 30, 2026

Renters insurance is often something people buy once, file away, and stop thinking about altogether. And for many renters, that makes sense. It is usually affordable, landlords often require it, and the basic idea seems simple: if anything happens to your belongings, insurance helps pay to replace them. But there is one major exception you should know about before the next heavy storm. Renters Insurance Usually Does Not Cover Flood Damage Most renters insurance policies do not cover flood damage. That can be a surprise, especially because renters insurance may cover other kinds of water damage, such as damage from a burst pipe or certain sudden plumbing problems. The Texas Department of Insurance says renters policies commonly cover losses from fire, smoke, theft, vandalism, and certain types of water damage, but not those caused by floods . If water enters your home from the outside, because of rising water, overflowing rivers or creeks, flash flooding, or storm runoff, a regular renters policy usually will not pay to replace any of your stuff. Why This Matters in San Marcos Flooding is not an abstract risk in San Marcos. The city itself identifies the San Marcos River, the Blanco River, and Purgatory Creek as the city’s three primary sources of flooding, warning that it can happen in these areas with little to no warning. That means renters may not have much time to react once heavy rain starts, a creek rises, or a flash flood warning is issued. Floodwater can affect streets, apartments, homes, parking lots, and your belongings pretty quickly. Your Landlord’s Insurance Is Not There to Protect Your Stuff Some renters assume the landlord’s insurance will step in at claim time, but in most cases, that's not how it works. A landlord’s policy is generally there to protect the building, not the tenant’s personal belongings. TDI explains that a landlord’s insurance will not cover a renter’s personal items , which is why renters insurance exists in the first place. So if floodwater damages the apartment structure, flooring, walls, or major building systems, that may be the property owner’s issue. But the renter’s couch, bed, laptop, TV, clothes, books, and other belongings are usually the renter’s responsibility. Do Not Wait Until a Storm Is Coming Timing matters, because a flood insurance policy usually cannot be started immediately. Most flood policies have a 30-day waiting period before coverage takes effect. That means renters generally cannot wait until a storm is on the radar, a creek is rising, or a flash flood warning is issued and expect to buy coverage in time. For renters in San Marcos and across Central Texas, this is worth reviewing before storm season, before moving into a new apartment, or before renewing a lease. It is especially important for renters living near creeks, rivers, low-water crossings, ground-floor units, older drainage areas, or parts of town that have flooded before. Know What Your Policy Does and Does Not Cover A basic renters policy is valuable, protecting your stuff against theft, fire, smoke, vandalism, and the like. But flood is a different story entirely. So if you rent in San Marcos or anywhere in Central Texas, take a few minutes to review your renters policy with your agent and ask some direct questions, like: Does this cover flood damage? What kinds of water damage are included? Is separate flood coverage available? Those are better questions to ask before the storm hits, rather than after your furniture is sitting on the curb.