How Well Are You Covered?

This story originally happened in 2017, but the lesson feels even more relevant today.

Earlier that summer, one of those typical Austin storms rolled through town. Nothing dramatic. Just a short burst of rain and thunder on a hot day — the kind of storm most of us barely think about once it passes. 

But for one of my clients, that ordinary summer storm nearly destroyed their home.

They were away on a normal weekday. Work. Kids at day camp. Regular life. Their housekeepers were at the house when the power went out, likely because of the storm. They called my clients to let them know they would leave for the day and come back another time to finish.

As they were walking out, they noticed smoke coming from the roof.

Thankfully, the neighbors had seen it too and had already called 911. Once the housekeepers realized the home was on fire, they ran back inside and rescued the family dog.

The fire department arrived quickly and put out the fire. It turned out that lightning had struck the house and started a fire in the attic.

At first, the damage did not look that bad. There was no dramatic, movie-style destruction. From the outside, it seemed like the family might be able to move back in while repairs were being made.

But the biggest damage was invisible.

Because of the smoke, everything inside the house was considered contaminated. They could not move back in. They could not take clothes, furniture, electronics, keepsakes, or even their children’s favorite toys until those items were professionally cleaned, restored, or cleared.

What looked like a contained attic fire turned into roughly seven months of cleanup, restoration, electrical work, and reconstruction.

They had to hire a mitigation company. Photos, electronics, personal items, furniture, and household goods all had to be evaluated and restored. Because the house had been struck by lightning, the electrical system also had to be inspected and repaired. To make that possible, much of the upstairs had to be opened up, taken down to the studs, and rebuilt.

And the cost did not stop with construction.

There were increased utility costs, temporary housing expenses, restoration bills, and months of disruption. In the end, the damage was expected to exceed $150,000.

Thankfully, my clients had insurance in place, had kept their policy current, and had coverage that allowed them to make a claim. The situation was still stressful and exhausting, but it did not financially ruin them.

That is the part worth paying attention to.

Most of us assume something like this will never happen to us. A lightning strike sounds unlikely. A small summer storm does not feel like a major threat. But Texas continues to be one of the most hazard-exposed insurance markets in the country.

In 2024, Texas had 4,369 lightning-related homeowners insurance claims, second only to Florida, and Texas had the highest average cost per lightning claim in the country at $38,558. Nationally, insurers paid $1.04 billion in lightning-related homeowners claims that year.

Hail is an even bigger issue. In 2025, State Farm paid more than $5.6 billion in hail-related claims nationwide, with $1.4 billion paid in Texas alone — the highest of any state. Texas also ranked #1 in the nation for major hail events in 2025, with 902 events involving hailstones one inch or larger.

The point is not to scare anyone. The point is that simply “having insurance” is not always enough. You need to understand what your policy actually covers.

Do you have enough dwelling coverage to rebuild at today’s construction costs? Do you have coverage for temporary housing if you cannot live in your home? Are your personal belongings covered at replacement cost or actual cash value? Do you understand your wind, hail, named storm, or roof deductible? Do you know what is excluded?

There is no one-size-fits-all answer, and the cheapest policy is not always the best policy. What matters is knowing what you have before something happens.

Tim Arch with Arch Insurance encourages homeowners to review their current coverage and, more importantly, understand the details of their policy. Your insurance agent can walk you through your coverage, your deductibles, your exclusions, and the areas where you may be underinsured.

Hopefully, you never need to use it.

But if a normal summer storm ever turns into a life-disrupting event, you will be very glad you took the time to know how well you are covered.