For most homeowners in Round Rock, Texas, buying home insurance is a smart and necessary move. It protects your investment from disasters like fire, theft, or hailstorms — all real risks in Central Texas. But one of the most important (and overlooked) things to understand about your policy is not what it covers — but what it doesn’t.
At Safe Beacon Insurance, we regularly talk with local families who assume they’re fully protected, only to discover during a claim that certain losses fall outside their homeowners insurance policy. That’s why we believe in education, not just insurance — and why we’re breaking down the most common home insurance exclusions so you know what to expect and how to protect what matters most.
Why Exclusions Matter
Homeowners insurance isn’t a blanket policy that covers every possible issue that could affect your home. It’s designed to protect you from sudden, accidental losses — but not from long-term damage, poor maintenance, or high-risk disasters that require separate policies.
Knowing what’s excluded can help you:
- Avoid surprises during a claim
- Make smart decisions about add-on coverage or endorsements
- Choose the right protection for your home and family
1. Flood Damage
Let’s start with one of the biggest surprises for most homeowners: flood damage is not covered by standard home insurance.
What Counts as Flooding?
Flooding refers to water that enters your home from the ground up — such as:
- Rising creeks or rivers
- Flash flooding from heavy rains
- Overflowing storm drains
- Surface water runoff
In Round Rock, this is a serious concern. Areas near Brushy Creek, Lake Creek, and other low-lying zones are at risk, even if they’re not classified as high-risk on FEMA flood maps.
How to Get Flood Coverage
To protect your home from flood-related damage, you need a separate flood insurance policy, either through the National Flood Insurance Program (NFIP) or a private flood insurer.
At Safe Beacon Insurance, we help Round Rock homeowners assess their flood risk and find the right policy. Flood insurance is often more affordable than people think — and it can save you tens of thousands after a disaster.
2. Earthquakes and Ground Movement
While Texas isn’t known for frequent earthquakes, the risk has increased in certain areas due to oil and gas activity. Williamson County is considered low-risk, but earthquakes, sinkholes, and ground shifts are still excluded under most standard policies.
How to Get Earthquake Coverage
If you’re concerned, you can usually add earthquake insurance as a rider or purchase a stand-alone policy. It’s not common in Central Texas, but for some homes — especially those with older foundations — it’s worth considering.
3. Maintenance and Wear & Tear
Home insurance is meant for sudden and accidental damage — not for ongoing deterioration or neglect. That means if something breaks down due to age or poor upkeep, it won’t be covered.
Examples of Non-Covered Issues:
- Roof leaks from old shingles
- Water damage from worn-out pipes
- HVAC system breakdowns
- Foundation settling due to poor drainage
Regular maintenance is your responsibility as a homeowner. If your insurer determines the damage was preventable or caused by neglect, they can deny the claim.
What You Can Do:
- Perform regular home inspections
- Replace old roofing or plumbing before issues arise
- Keep a maintenance log (this can help with certain claims or disputes)
4. Mold Damage
Mold is a tricky one. In many cases, mold growth is not covered, especially if it results from long-term water exposure, humidity, or lack of maintenance.
When Is Mold Covered?
Mold may be covered if it results from a sudden, covered peril, like:
- A burst pipe
- Water from a storm (if it enters due to wind damage)
- Firefighting efforts
However, most policies have strict limits — and some exclude mold entirely.
Mold in Round Rock Homes
In Central Texas, mold is a common concern due to high humidity. If your home isn’t well ventilated or you’ve had past water issues, you’re at a higher risk.
Tip: Ask us about mold endorsements or expanded water damage coverage that can fill this gap.
5. Sewer Backups and Sump Pump Failures
Water damage from sewer or drain backups is not included in most standard home insurance policies. If wastewater backs up into your home through toilets or drains, you’re on your own — unless you’ve added sewer backup coverage.
How to Protect Yourself
We recommend adding this coverage as an affordable endorsement. It typically costs less than $100/year and can provide $5,000 to $25,000 in protection. This is especially important in Round Rock neighborhoods with older sewer lines or areas prone to heavy rain.
6. Home-Based Business Equipment and Liability
If you run a home-based business, you might think your homeowners insurance covers your work laptop, inventory, or client interactions. Unfortunately, most policies limit or exclude:
- Business-related property (often capped at $2,500)
- Liability for business-related visitors or services
What You Need:
If you operate a small business from home in Round Rock — whether you’re a photographer, CPA, or sell handmade goods online — talk to us about:
- Home business endorsements
- Commercial general liability
- Inland marine insurance for tools or equipment
7. Luxury Items and High-Value Property
Standard policies include personal property coverage, but high-value items like jewelry, art, collectibles, or firearmsare often capped at specific dollar amounts (e.g., $1,500 for jewelry).
What to Do:
If you own expensive items, we recommend scheduling them on your policy. This allows you to:
- Fully insure their appraised value
- Add coverage for accidental loss or mysterious disappearance
- Avoid paying a deductible on these items
At Safe Beacon Insurance, we can help you appraise and insure valuable property so you’re not caught off guard.
8. Acts of War or Nuclear Hazards
While not common concerns in Round Rock, policies universally exclude large-scale events like war, government seizure, or nuclear accidents. These exclusions are standard and cannot be removed or altered.
9. Intentional Damage
Home insurance only covers accidental loss. If damage was caused intentionally — whether by you or someone in your household — the claim will be denied. This includes:
- Arson
- Vandalism by family members
- Fraudulent claims
10. Pest Infestations
Rodents, termites, and other pest infestations are not covered. Insurers consider these preventable through maintenance, even though they can cause serious structural damage.
Round Rock homes, especially in wooded or older neighborhoods, may be at higher risk for:
- Termites
- Carpenter ants
- Roof rats
- Scorpions
Preventative pest control is your responsibility as a homeowner.
How to Fill the Gaps in Your Home Insurance
At Safe Beacon Insurance, we know that understanding exclusions is just one part of the puzzle. The next step is deciding how to address those gaps so your coverage actually fits your life.
Here’s what we recommend:
✅ Schedule a home insurance review annually
✅ Ask about endorsements for water backup, mold, or valuables
✅ Consider a flood insurance quote — even if you’re not in a flood zone
✅ Keep your home well maintained and documented
✅ Tell us if you run a business, rent a room, or have made home upgrades
Our team is local to Round Rock and Williamson County, so we understand the risks and realities of living here. We’ll walk you through your current policy, explain what’s included (and what isn’t), and help you build a plan that makes sense for your home and your budget.
Final Thoughts
Your home insurance policy is a powerful safety net — but only if it protects against the risks that matter to you. Knowing what isn’t covered helps you make smarter choices, avoid claim denials, and get the peace of mind you’re really paying for.
If you’re unsure about your current coverage or want to explore options to strengthen your protection, reach out to Safe Beacon Insurance. We’re here to help Round Rock homeowners feel confident, covered, and prepared — no matter what comes your way.
Ready for a home insurance review?
📞 Call us at (512) XXX-XXXX
🌐 Visit safebeaconinsurance.com
📍 Serving Round Rock, Hutto, Georgetown, and all of Williamson County