For many Central Austin homeowners, insurance is often purchased once and rarely revisited. Kyle and Brooke Jones of Goosehead Insurance believe that mindset can leave significant gaps in protection.
Below, the experts share what homeowners should understand before selecting, or renewing, a policy.
Q: Why should homeowners think of insurance as part of their overall investment strategy rather than a set-it-and-forget-it expense?
A: Every situation changes. You may renovate, update finishes, add square footage, or simply see construction costs rise. Reconstruction expenses fluctuate, deductibles change, and even a carrier’s risk appetite can shift. We want to ensure the policy remains the best fit. Sometimes that means adjusting coverage limits. Other times, it means changing carriers entirely.
Q: When comparing policies, what matters more than price?
A: In today’s home insurance environment, no two policies are created the same. You need to understand what is covered — and what isn’t — what endorsements are available, how claims are settled, deductible structures, and what discounts apply. If someone only focuses on premium, they often discover after a claim that something critical was excluded.
Q: Replacement cost versus actual cash value confuses many homeowners. Why does that distinction matter?
A: Replacement cost pays what it takes to rebuild or replace with materials at today’s prices. Actual cash value factors in depreciation and can result in settling for far less than rebuild costs. In many ways, choosing ACV is like partially self-insuring while still paying for coverage. Given labor and material costs in Texas, replacement cost is usually essential.
Q: Central Austin residents near Shoal Creek worry about flooding. What do homeowners misunderstand about flood coverage?
A: Many believe if they’re not in a designated high-risk flood zone, they don’t need flood insurance. Technically, every home sits in a flood zone — risk just varies. With changing weather patterns, new construction, and increasing impermeable surfaces, even low-risk areas can flood. A significant portion of flood claims comes from properties outside high-risk zones.
Q: When should someone seriously consider adding a flood policy?
A: If you’re near a creek, low-lying area, or anywhere water rises during catastrophic rains, you should evaluate it. Flood insurance is separate from a standard homeowners policy, and you cannot add it once a storm is imminent. Planning ahead is critical.
Q: What are the most common gaps you uncover when reviewing existing policies?
A: We immediately look at claims settlement options — whether it’s replacement cost, actual cash value, or payment schedules. We examine deductibles closely and review optional endorsements, particularly those related to water damage. That’s often where we find exposures homeowners didn’t realize they had.
Q: Texas weather varies dramatically from Austin to Houston. How does regional risk factor into selecting a carrier?
A: That’s where working with a broker matters. We have access to carriers that specialize in certain parts of Texas and understand unique exposures — freeze events, hail, hurricanes, and wildfire risk. Even within Central Texas, some areas require more specialized products. Matching the right carrier to the right risk profile is essential.
Q: Insurance is often viewed as a cost. How do you help homeowners balance affordability with long-term protection?
A: If you never have a claim, it can feel like an added expense. But we regularly see claims exceed $50,000. That’s a significant financial burden without proper protection. Insurance should safeguard long-term wealth, not just satisfy a mortgage requirement.
Q: Beyond homeowners coverage, how should families think about protecting their overall financial picture?
A: It’s important to look at the full portfolio — home, auto, umbrella, and life coverage. If someone has strong home coverage but carries minimum liability limits on their vehicles, their wealth is still exposed. Proper protection is coordinated and comprehensive.
“If you never have a claim, insurance can feel like an added cost. But when claims exceed $50,000, you realize you’re protecting long-term wealth by having the right coverage in place.”