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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Beyond the Commute: Insuring Your Boat, RV, and Motorcycle in Central Texas

December 3, 2025

Living in Central Texas isn't just about the great communities and proximity to Austin and San Antonio. For many of us, it's about the weekends. It’s about getting out and enjoying the incredible landscape that surrounds us. It's about launching the boat at Canyon Lake, taking a scenic motorcycle ride through the twists and turns of the Hill Country, or parking the RV for a long weekend getaway. Your "toys" are your ticket to freedom, but they also represent a significant investment and a major liability. A common and costly mistake is assuming your auto or home insurance policy automatically covers them. It doesn't. At San Marcos Insurance Agency, we help our clients protect their fun. Here’s what you need to know about insuring your recreational vehicles. 1. Boats on Canyon Lake & The Guadalupe Here’s the hard truth: Your homeowners insurance provides little to no meaningful coverage for your boat. It might cover a small canoe or kayak for liability on your property, but the moment you put a motor on it or take it to a lake, you're exposed. A dedicated boat policy is essential and covers: • Physical Damage: Protects the boat, motor, and trailer from theft, fire, or damage, whether it's on the water or in your driveway. • Liability: This is critical. It covers you if you cause an accident that injures another boater or damages their property (docks, other boats). • On-Water Towing: If you're stranded in the middle of Canyon Lake with a dead engine, this coverage is a lifesaver, paying for the tow back to the marina. • Wreckage Removal: If your boat sinks, you are legally responsible for the cost of removing it. This coverage handles that expense. 2. Motorcycle Rides in the Hill Country A motorcycle isn't just a smaller car; it carries entirely different risks. The winding roads around Wimberley and Dripping Springs are beautiful but demand respect. Standard auto insurance isn't enough. A motorcycle policy needs to include: • Guest Passenger Liability: Does your policy cover a passenger riding with you? Many don't unless you specifically add it. • Custom Parts & Equipment (CPE): You've spent money on custom pipes, a new seat, and chrome. Your basic policy won't cover those upgrades unless you add CPE coverage. • Higher Medical Payments: With a higher risk of injury, increasing your own medical payments coverage is a smart move. 3. RVs & Travel Trailers: A Vehicle or a Home? The answer is: it's both. And it needs to be insured that way. Your auto policy only provides basic liability when the trailer is hitched to your truck, and your home policy doesn't cover it at all. You need a dedicated RV or travel trailer policy, which combines the best of auto and home insurance: • Total Loss Replacement: If your new RV is totaled, this can help you get a brand new, comparable model, not just the depreciated cash value. • Vacation Liability: Covers you for injuries or property damage that happen at your campsite—for instance, if a guest trips over your awning. • Personal Effects: Covers all the stuff you keep inside your camper (grills, TVs, clothes, camping gear) that aren't part of the vehicle itself. • Full-Timer's Liability: If you live in your RV for months at a time, this provides broader liability protection that acts more like a homeowners policy. 4. The Bundle is Your Best Friend Here's the good news. Insuring your "toys" doesn't have to be complicated or expensive. Most carriers we work with offer significant discounts for "bundling." When you insure your boat, motorcycle, or RV with the same company that writes your home and auto policies, you not only simplify your life with one agent and one bill, but you can also unlock multi-policy discounts that save you serious money. Get Your Fun Covered Before you hook up the trailer or roll out the bike for your next adventure, let's talk. A quick 15-minute call with us can ensure your weekend fun is properly protected. Contact San Marcos Insurance Agency today for a free, no-obligation quote on your recreational vehicles.