Purchasing a home is one of the most significant financial commitments most people will make, and protecting that investment starts with the right homeowners insurance policy. For new buyers in San Antonio—whether purchasing a historic home in King William or a new build in Stone Oak—understanding what homeowners insurance actually covers is essential. While it may seem like just another item on the closing checklist, a good policy provides financial security in case of unexpected events. This beginner’s guide outlines the key components of homeowners insurance so buyers and owners alike can feel confident in what’s protected and where additional coverage might be needed. BGA Design + Build supports San Antonio homeowners with informed guidance throughout the homeownership process, including tips on safeguarding your property.

At its core, homeowners insurance is a financial product that protects property owners against damage to their home and belongings, as well as liability for accidents that occur on the property. Lenders typically require proof of coverage before closing on a mortgage, but even cash buyers are strongly encouraged to carry a policy to shield against potential losses.

Standard policies, often referred to as HO-3 or “special form” policies, offer broad protection for the structure of the home and named perils for personal belongings. Policies vary by provider, location, and coverage level, but most include several core areas of protection that form the foundation of coverage.

Dwelling coverage protects the physical structure of your home, including the walls, roof, flooring, windows, and built-in appliances. This is the portion of the policy that comes into play if your home is damaged by covered events such as fire, hail, wind, lightning, or vandalism. In a city like San Antonio, which is prone to severe thunderstorms and occasional hailstorms, this type of protection is especially critical.

It’s important to ensure that the dwelling coverage amount is sufficient to rebuild your home at current construction costs, not just reflect its market value. Construction prices can rise due to supply chain issues or labor shortages, so it’s worth reviewing this number annually to avoid being underinsured.

Beyond the primary residence, many properties include additional structures such as detached garages, guesthouses, sheds, fences, or pool houses. These structures are usually covered under “other structures” coverage, which typically provides around 10% of the dwelling coverage amount. For San Antonio homeowners with expansive yards or outdoor living spaces, verifying that these features are protected is key.

This portion of the policy covers the contents of your home—furniture, electronics, clothing, appliances, and personal items. If your belongings are damaged or destroyed due to a covered event like fire or theft, personal property coverage helps pay for repair or replacement.

Most policies place limits on high-value items such as jewelry, artwork, or collectibles. If your San Antonio home includes designer furnishings or valuable personal assets, additional coverage through endorsements or scheduled personal property riders may be necessary to fully protect those investments.

If your home becomes uninhabitable due to a covered event, loss of use coverage—also known as additional living expenses (ALE)—helps pay for temporary housing, meals, and other increased costs of living while repairs are made. Whether you need to rent an apartment during reconstruction or stay in a hotel for a short period, this coverage provides a safety net so you’re not financially burdened during a difficult time.

In a city like San Antonio where summer storms or rare freeze events can lead to extended repair times, loss of use protection offers important peace of mind.

Liability coverage protects you if someone is injured on your property or if you accidentally cause damage to someone else’s property. This could range from a slip-and-fall injury in your driveway to damage caused by a tree falling on a neighbor’s home. It can also help cover legal fees and settlements if a lawsuit results from the incident.

Most standard policies include $100,000 in liability coverage, but homeowners often choose to increase this limit—particularly those who entertain frequently or own features like swimming pools, which come with added risk. For high-value properties in San Antonio, additional liability protection may also be bundled with umbrella insurance policies for broader coverage.

While homeowners insurance provides broad protection, there are notable exclusions. Flooding, for example, is not covered by standard policies and requires separate coverage through the National Flood Insurance Program (NFIP) or a private insurer. This is especially relevant in parts of San Antonio where heavy rainfall or proximity to creeks and rivers increases flood risk.

Earthquake damage is also excluded and requires additional coverage if desired. Routine maintenance, pest infestations, and gradual wear-and-tear are considered the homeowner’s responsibility and are not covered by insurance.

Policyholders should always read the fine print and consult with their insurance agent to understand exclusions and optional coverages. Tailoring your policy ensures you aren’t left with gaps that could be costly in the event of a loss.

Homeownership is rarely static. Renovations, new furniture purchases, or lifestyle changes may impact your insurance needs. After a remodel or significant upgrade—such as a kitchen overhaul or a new outdoor living area—it’s important to review your policy and increase coverage as needed. This ensures that in the event of a loss, you’re compensated for the true value of your home and its improvements.

BGA Design + Build frequently helps homeowners plan projects with these considerations in mind, advising on how design changes may influence insurance coverage or property value.

Owning a home is more than just a financial investment—it’s where memories are made, and lives unfold. A well-structured homeowners insurance policy is one of the most important tools in protecting that investment. From understanding coverage basics to knowing when to add endorsements, being proactive about your policy ensures peace of mind through every season of homeownership.

If you're buying, remodeling, or evaluating your current home in San Antonio, contact BGA Design + Build to learn how to align your real estate decisions with long-term protection and value. Their team brings design, build, and property expertise together to help homeowners protect what matters most.