Condo insurance in Texas: what your HOA policy leaves out

If you own a condo in Texas, your homeowners association collects dues every month and carries a master insurance policy. That policy covers a lot, but it almost certainly does not cover you . Understanding what condo insurance covers versus what your HOA covers matters more than most Texas condo owners realize, and the gap between the two is wider than most people expect.

How an HOA master policy works in Texas

Every condo association in Texas is required under the Texas Property Code to carry a master insurance policy that protects the shared structure and common areas. That includes the roof, exterior walls, hallways, elevators, pool, parking structures, and other amenities all owners share. When a covered loss damages those areas, the HOA's insurer pays, not you personally.

What confuses most condo owners is the difference between two types of HOA master policies:

• Bare walls-in : covers only the building's skeleton, including framing, wiring inside walls, plumbing inside walls, and bare concrete or drywall. Everything else is your responsibility.
• All-in (or all-inclusive) : covers original fixtures, flooring, and sometimes cabinetry as they were when the building was first built, but still excludes your personal property, upgrades you made, and your liability.

Most Texas condo associations carry a bare walls-in policy. If you are not sure which type your HOA carries, request a copy of the master policy declarations page from your property manager. That single document shapes everything about what your own condo insurance needs to cover. For a closer look at how HOA master policies are structured in Texas, see our guide on the HOA master policy in Texas.

What the HOA policy does not cover

Even the most generous all-in HOA master policy leaves out several categories that matter to individual condo owners. This is where most people get surprised after a loss.

Your personal belongings

The HOA's policy has no coverage for your furniture, electronics, clothing, appliances, or anything else you own. If a pipe bursts and ruins your couch, your television, and two years of clothing, the HOA writes you a check for nothing. A standard HO-6 condo insurance policy in Texas typically includes personal property coverage starting around $20,000 to $30,000 and can be increased to match what you actually own.

Interior improvements and upgrades

This is the category that catches Texas condo owners most off guard. If you replaced the original laminate floors with hardwood, added granite countertops, upgraded kitchen cabinets, or installed custom tile in the bathrooms, those improvements are almost certainly not covered by the HOA. They were not part of the original building, so the master policy ignores them. An HO-6 policy includes dwelling coverage (sometimes called Coverage A or interior coverage) specifically to protect those upgrades, typically starting at $50,000 or more depending on what you have put into the unit.

Your personal liability

If a guest slips and falls inside your unit and sues you, the HOA policy offers no protection. If your dishwasher leaks and damages the unit below you, the HOA policy may cover the building structure, but the neighbor's claim against you is yours to handle. Personal liability coverage on an HO-6 policy typically starts at $100,000 and can be extended to $300,000 or more . Many Texas condo owners pair this with a personal umbrella policy for an extra layer of protection above the base limit.

Additional living expenses

If a fire or major water loss makes your unit uninhabitable while repairs are made, the HOA policy does not pay for your hotel, temporary apartment, or increased food costs while you are displaced. An HO-6 policy includes loss of use coverage, which reimburses those costs up to a set limit, usually 20 to 30 percent of your personal property coverage amount.

The HOA deductible assessment

When the HOA files a claim on the master policy, the deductible gets assessed back to unit owners. HOA master policy deductibles in Texas can run from $10,000 to $25,000 or higher for wind and hail losses, and in some cases the full deductible gets split among all owners or billed entirely to the unit where the loss originated. Loss assessment coverage on your HO-6 policy is designed to cover this scenario, and it is often available for a small additional premium.

Texas-specific risks that need extra attention

Texas weather creates specific coverage questions that condo owners along the Gulf Coast, in the Houston metro, and across the Dallas-Fort Worth area deal with differently than owners in other states.

Flood coverage

Neither your HOA master policy nor a standard HO-6 condo policy covers flood damage. This matters in Houston and Harris County, where flooding events are frequent and can be severe. If your condo building sits in or near a flood zone, flood coverage deserves serious consideration. JAMCO Insurance can help you explore flood insurance options through the NFIP or the private market, including policies that cover your personal property and interior improvements separately from what the association carries.

Wind and hail

In Texas coastal areas, some HOA master policies exclude wind and hail, or carry a separate wind/hail deductible calculated as a percentage of the insured value rather than a flat dollar amount. A two percent wind deductible on a building insured for $10 million means a $200,000 deductible the association must cover before insurance pays. That cost comes back to owners. Understanding your HOA's wind coverage situation before hurricane season is something every Texas condo owner should make a priority.

Sewer and water backup

Standard HO-6 policies often exclude water backup from sewers or drains unless you add the endorsement. In older condo buildings, this is not a hypothetical risk. The endorsement typically adds $5 to $15 per year to your premium and covers a type of loss that can cost $5,000 to $20,000 or more to repair.

What an HO-6 condo policy actually covers

A properly structured HO-6 policy is built specifically for condo owners and fills the gaps the HOA master policy leaves behind. Here is what you typically get:

• Interior dwelling coverage : protects walls, floors, ceilings, and fixtures from the studs inward, which is critical under bare walls-in HOA policies.
• Personal property coverage : covers your belongings against fire, theft, vandalism, and other named perils.
• Personal liability : pays for legal defense and damages if someone is injured in your unit or you accidentally cause property damage to others.
• Loss of use : covers temporary housing and living expenses when your unit is uninhabitable after a covered loss.
• Medical payments to others : no-fault coverage for minor injuries to guests, typically $1,000 to $5,000 .
• Loss assessment coverage : protects you when the HOA assesses owners for a shared loss, including the master policy deductible.

HO-6 policies in Texas are generally affordable. For most condo owners in the Houston area, annual premiums run roughly $400 to $900 depending on location, unit value, coverage limits, and the carrier. Units in coastal areas or in buildings with older roofs will see higher rates.

Common mistakes Texas condo owners make

These are the coverage mistakes that come up most often:

• Assuming the HOA covers everything inside the unit : it almost never does, especially under a bare walls-in policy.
• Choosing actual cash value instead of replacement cost for personal property : actual cash value pays what your five-year-old television is worth today, not what it costs to replace it. Replacement cost coverage costs a little more but pays what it actually takes to buy a new one.
• Skipping loss assessment coverage : it is one of the cheapest endorsements available and covers one of the most common surprise costs condo owners face.
• Not accounting for upgrades when setting dwelling limits : if you have put significant money into your unit and set your Coverage A at the builder's original standard, you are underinsured.
• Forgetting jewelry, art, or other scheduled property : standard policies cap coverage on items like jewelry at $1,500 to $2,500 . High-value pieces need a scheduled personal property endorsement or a separate jewelry insurance policy.

Get the right condo coverage with JAMCO Insurance

JAMCO Insurance is an independent insurance agency serving Texas condo owners across the Houston metro and beyond. As an independent agency, JAMCO compares coverage and pricing across multiple carriers to find the combination that fits your unit, your upgrades, and your budget, rather than steering you toward one company's products.

If you are not sure what your HOA master policy actually covers, or if you want to make sure your HO-6 fills the right gaps, JAMCO can walk you through the declarations pages side by side and build a policy that leaves no major exposure unaddressed. Call (832) 777-5260 or visit the JAMCO Insurance contact page to get started with a condo insurance review today.