Condo Insurance in Texas: What Your HOA Policy Doesn't Cover

If you own a condo in Texas, you might assume your homeowners association's master insurance policy has you fully covered. Unfortunately, that's rarely the case. HOA master policies typically only cover the building's exterior structure and common areas — leaving significant gaps that could cost you thousands out of pocket if something goes wrong.

That's where condo insurance (also called an HO-6 policy) comes in. Here's what every Texas condo owner needs to know.

HOA master policies generally fall into two categories:

• "Bare Walls" Coverage: The most common type. This covers the building's structure from the exterior walls out — including the roof, exterior walls, hallways, elevators, and common areas like pools and lobbies. Everything from the drywall in is your responsibility.
• "All-In" or "Wall-to-Wall" Coverage: Less common but more comprehensive. This covers the building structure plus built-in fixtures like cabinets, countertops, and flooring as they were originally installed. However, any upgrades or improvements you've made are still your responsibility.

Regardless of which type your HOA carries, the master policy never covers your personal belongings, personal liability, or improvements you've made to your unit.

Your personal condo insurance policy fills in the gaps left by the HOA master policy:

• Interior Structure (Dwelling Coverage): Covers walls, flooring, fixtures, and any improvements or upgrades within your unit — from a kitchen remodel to new hardwood floors.
• Personal Property: Covers your furniture, electronics, clothing, appliances, and other belongings if they're damaged by fire, theft, water damage, or other covered events.
• Personal Liability: Protects you if someone is injured in your unit and you're found responsible. This also covers legal defense costs.
• Loss of Use: Pays for temporary housing and living expenses if your condo becomes uninhabitable after a covered loss.
• Loss Assessment Coverage: If a major loss affects the entire building and your HOA levies a special assessment to cover costs that exceed the master policy limits, this coverage helps pay your share.

Texas weather events — particularly hailstorms and hurricanes — can cause building-wide damage that exceeds the HOA's master policy limits. When that happens, the HOA typically divides the excess cost among all unit owners through a special assessment. These assessments can run into thousands of dollars per unit. Loss assessment coverage, which is relatively inexpensive to add, protects you from these unexpected costs.

To determine the right amount of coverage:

• Review your HOA master policy: Understand exactly what's covered and what's not. Your insurance agent can help you interpret the document.
• Estimate your interior improvements: Add up the cost of any upgrades, renovations, or built-in improvements you've made beyond the original construction.
• Inventory your belongings: Total the replacement value of your furniture, electronics, clothing, and other personal property.
• Consider your liability exposure: Most agents recommend at least $300,000 in liability coverage, with an umbrella policy for additional protection if you have significant assets.

Don't assume your HOA has you covered. At Taylor Reed Insurance, we help Texas condo owners understand the gaps in their HOA master policy and find condo insurance that provides complete protection. We'll review your HOA's master policy, identify the coverage you need, and compare options from multiple carriers.

Get a free condo insurance quote and make sure you're fully protected.