What should Dallas buyers check about homeowners insurance before closing?

Get a real insurance quote during your Texas option period, not after it ends. Your lender won't fund the loan without proof of coverage, and the price of that coverage, including the wind and hail deductible and the roof terms, changes your monthly payment. Ask for the property's claims history, confirm the roof's age and condition, and compare at least three quotes before you decide whether to keep the contract.

By Matt Watson, Broker, REALTOR® | October 16, 2026

Most buyers I work with ask about the interest rate, the option period, and the inspection. Almost none ask about insurance until the lender asks for it, and that's the wrong order. In Dallas, insurance can swing your payment by hundreds of dollars a month, and it's one of the few big costs you can still check while you hold the right to walk away.

Here's what's happening right now. Texas Insurance Commissioner Amanda Crawford said this month that the average homeowners premium has gone from under $2,000 in 2020 to more than $3,500 in 2026, roughly a 79% jump. Texas insurers also paid out about $5.8 billion in wind and hail claims in 2025, and a large share of that came from North Texas. Dallas buyers feel that in their quotes.

There's some good news too. Texas Department of Insurance data shows insurers filing an average 4.3% homeowners rate decrease since the start of July, and Crawford is urging Texans to shop around as rates moderate. That's current conditions, not a promise about what your renewal will do, but it's a good reason to compare quotes instead of taking the first one.

Why you should get quotes during your option period

Your option period is your cleanest exit. If the insurance quote comes back far higher than you budgeted, or a carrier won't write the policy at all, you can still terminate and lose only your option fee. After the option period ends, that leverage gets much smaller, and your earnest money starts to be at risk if the deal falls apart.

Here's the timeline I coach clients through:

  1. Day one of the option period: Send the property address to an independent insurance agent and one or two direct carriers.
  2. Days two through four: Ask for the seller's CLUE report, which lists claims on the property. Book your roof inspection if the home has an older roof.
  3. Days five through seven: Compare quotes side by side, then rerun your full monthly payment with the real insurance number.
  4. Before the option period ends: Decide whether to proceed, negotiate, or terminate.

If you want a refresher on how the option period works, my guide to what to look for in a Dallas home inspection covers what to line up in those first few days.

The four things that drive your Dallas quote

1. The wind and hail deductible. Many Texas policies use a separate percentage deductible for wind and hail instead of a flat dollar amount. In North Texas, 2% is common, and some carriers use 3% in higher-risk areas. The percentage applies to your insured dwelling value, not to the repair bill. On a home insured for $400,000, a 2% deductible means you pay the first $8,000 of storm damage yourself. Ask yourself whether you have that cash set aside on day one of ownership.

2. The roof. Roof age and condition matter a lot in hail country. Older roofs can mean higher premiums, a policy that pays actual cash value instead of replacement cost, or a request for an inspection. Recent reports say the Texas Department of Insurance clarified that insurers can't deny or refuse to renew a policy solely because of the age of a roof or another property component. Condition still counts, so a worn or damaged roof can still affect coverage. Ask your insurance agent how this applies to your specific policy, because the rule's details are worth confirming before you rely on them.

3. The claims history. A CLUE report shows claims filed on a property in recent years, and several claims in a short window can make some carriers cautious. The Texas Department of Insurance suggests asking the seller for the report. Request it early, because it can change which carriers will quote you.

4. What the policy actually pays for. Compare dwelling limits, replacement cost versus actual cash value on the roof, and the deductible together. A lower premium with a 5% deductible and depreciated roof payouts isn't cheaper if a storm hits.

House, townhome, or condo: it changes the policy

If you're buying a house in East Dallas or North Oak Cliff, you'll typically carry a full homeowners policy on the structure, so the roof, the deductible, and the claims history are all on you. If you're buying a condo in Uptown or Oak Lawn, you'll usually carry an HO-6 policy for the interior while the HOA's master policy covers the building, and the master policy's cost shows up in your dues and sometimes in special assessments. Townhomes vary by how the HOA and ownership are set up, so read the declaration before you assume.

Flood coverage is separate from a standard homeowners policy, no matter the property type. If the home is near a creek or in a mapped flood zone, price a flood policy at the same time, and keep in mind that most flood policies have a waiting period before coverage begins.

How to rerun your numbers

Once you have a real quote, rebuild your monthly payment with every piece in it: principal and interest, property taxes, insurance, and HOA dues if there are any. A $400,000 house with a $4,000 annual premium adds about $333 a month, and a lender will count that in your debt-to-income ratio. If the number doesn't work, you have options while you're still in your option period:

  • Ask the seller for a credit or a repair, such as a roof repair or replacement, if the roof is driving the premium.
  • Ask your lender how a different loan structure or a seller-paid rate buydown could offset the higher payment. Your lender needs to verify any figures before you rely on them.
  • Terminate under the option period and keep looking.

For a wider look at what else belongs in your budget, my breakdown of the costs of buying a home in Dallas walks through the rest. And if you want the basics of how coverage works, my homeowner's insurance primer is a good starting point.

This is exactly the kind of check I walk my clients through before they commit. After 25 years in Dallas's urban core, I've seen a great contract get shaky because nobody priced the insurance until week three. Your specific numbers depend on the property, the roof, and the carrier, so the only way to know is to get real quotes early.

Frequently Asked Questions

When should I get homeowners insurance quotes when buying a house in Texas?

Start during your option period, ideally in the first few days. Your lender needs proof of coverage before closing, and the option period is when you can still terminate if the quote or the roof terms don't work.

Can an insurance company refuse to cover a Dallas home because the roof is old?

Recent reports say the Texas Department of Insurance clarified that insurers can't deny or refuse to renew a policy solely because of a roof's age. They can still consider the roof's physical condition, so confirm the details with your insurance agent before you count on coverage.

What is a wind and hail deductible in Texas?

It's a separate deductible, usually a percentage of your insured dwelling value, that applies to wind and hail damage. On a home insured for $400,000, a 2% deductible means you pay the first $8,000 before insurance pays.

What is a CLUE report, and should I ask for one?

A CLUE report lists insurance claims filed on a property over recent years. Ask the seller for it early, because past claims can affect which carriers will quote you and at what price.

Is homeowners insurance getting cheaper in Texas?

Texas Department of Insurance data shows insurers filing an average 4.3% homeowners rate decrease since July, though premiums are still well above 2020 levels. Your own quote depends on the property, the roof, and the carrier, so compare several.

Next step

Insurance is one line in your budget, but it can change the whole deal. If you're thinking about buying in Uptown, Oak Lawn, East Dallas, or North Oak Cliff, I'd be happy to walk through your numbers with you before you make an offer. No pressure, no obligation, just real guidance from someone who knows these neighborhoods. Reach out at mattwatson.com and we'll set up a free buyer consultation.

About Matt Watson, Broker, REALTOR®

Matt Watson is a Dallas-based real estate broker and REALTOR® with over 25 years of experience in the city's urban core neighborhoods. He specializes in condos, townhomes, and single-family homes in Uptown, Oak Lawn, East Dallas, and North Oak Cliff. Whether you're buying your first condo or selling a longtime home, Matt brings deep local knowledge and straightforward guidance to every transaction. Connect with Matt at mattwatson.com.

Matt Watson is a licensed real estate broker and not an insurance agent. Insurance figures are general market information, not a quote or advice. Confirm coverage details with a licensed Texas insurance agent.

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