HOA master policy in Texas: what it actually covers

If you own a condo or townhome in Texas and pay monthly HOA dues, your association almost certainly carries an HOA master policy . Most homeowners assume that policy has them covered from top to bottom. It does not. Understanding where the master policy stops and where your personal coverage needs to start is one of the most important things a Texas condo or townhome owner can do. Getting it wrong can leave you holding a five-figure repair bill out of pocket.

What a HOA master policy actually is

A HOA master policy is a commercial property insurance policy purchased by the homeowners association to protect the shared property and common areas of the community: the lobby, hallways, elevators, parking structures, roofs, exterior walls, and pool areas. The association pays the premium out of collected dues, and the policy responds when those shared assets are damaged by a covered event like fire, a severe windstorm, or a burst pipe in a common-area wall.

In Texas, HOA master policies are governed by the association's governing documents (the Declaration, CC&Rs, and bylaws) and by Chapter 82 of the Texas Property Code for condominiums. The statute does not dictate exactly what the master policy must cover, which means the scope varies significantly from one HOA to the next. Reading your association's governing documents, or asking your HOA board directly, is the only way to know what your specific policy includes.

There are two primary structures you will encounter, and knowing which one your HOA carries changes everything about how you set up your own coverage.

Bare walls-in coverage

A bare walls-in policy covers the building structure only: exterior walls, the roof, floors and ceilings in their original unfinished state, and common areas. Past the drywall and into your unit, you are on your own. Your flooring, cabinetry, countertops, bathroom fixtures, built-in appliances, and any upgrades the previous owner or you installed are not covered by the master policy. This is the most common structure for older Texas condo communities.

All-in (all-inclusive) coverage

An all-in master policy extends coverage to the original fixtures and finishes inside each individual unit as built by the developer. That includes flooring, cabinetry, and appliances that came with the unit. It still does not cover your personal property (furniture, electronics, clothing) or any upgrades you made above the original build standard. If you replaced builder-grade carpet with hardwood floors, those floors are typically your responsibility regardless of whether your HOA carries a bare walls or all-in policy.

What the master policy does not cover

This is where most Texas condo owners get surprised after a claim. Even the broadest all-in master policy leaves several major categories uninsured.

• Your personal property , furniture, clothing, electronics, appliances you brought in, artwork. A master policy covers the building, not what is inside your unit.
• Your personal liability. If a guest slips and falls inside your unit and sues you, the HOA's policy does not defend you. You need your own liability coverage.
• Loss of use and additional living expenses. If a covered loss makes your unit uninhabitable, the master policy will not pay for your hotel or temporary rent while repairs are made.
• Unit improvements and upgrades. Any renovation above the original developer spec is almost always excluded, even under all-in policies.
• Your HOA loss assessment. When a major claim exceeds the master policy's limits or the deductible, the association can assess each unit owner for a share of the gap. A standard HO-6 policy includes loss assessment coverage that can absorb this cost.
• Flood damage. Like most commercial property policies, HOA master policies typically exclude flood. In a state like Texas, where Harris County alone has experienced multiple 500-year flood events in recent memory, this gap matters considerably.

The deductible gap problem in Texas

Here is a scenario that plays out in Texas communities every year. A grease fire breaks out in one unit and spreads, causing $400,000 in damage to three units and a common hallway. The HOA's master policy has a $25,000 deductible . The association does not have enough reserves to absorb that deductible, so it passes a loss assessment to the affected unit owners: each pays $3,000 to $5,000 out of pocket before a single repair dollar flows.

HOA deductibles in Texas have been rising sharply since 2017. Wind and hail deductibles of 2% to 5% of insured value are now common in the Houston metro and coastal areas, because carriers are managing their catastrophe exposure. On a building insured for $10 million, a 2% wind deductible is $200,000. That cost gets passed down.

A personal HO-6 condo policy with loss assessment coverage (typically $1,000 to $50,000 per occurrence depending on how the policy is written) is your financial protection against this scenario. It is not expensive to add, and it is often overlooked.

What you need in addition to the HOA master policy

For virtually every Texas condo or townhome owner, the answer is an HO-6 policy , also called condo insurance. It fills the gaps the master policy leaves open. A well-structured HO-6 typically includes:

• Dwelling coverage (Coverage A). Protects the interior of your unit: walls from the studs in, flooring, cabinets, countertops, fixtures, and upgrades. You set the limit based on your unit's finish level and any improvements you have made.
• Personal property coverage. Replaces your belongings after theft, fire, or a covered water event. Texas condo owners routinely underestimate how much their furniture, electronics, and clothing are worth. A simple home inventory can be revealing.
• Personal liability. Protects you if someone is injured in your unit or if you accidentally cause damage to a neighbor's unit. A common claim in multi-family buildings is water damage from an overflowing tub or washing machine.
• Loss of use. Covers hotel stays, short-term rentals, and extra meal costs while your unit is repaired after a covered loss.
• Loss assessment coverage. As described above, this pays your share of a shortfall between the master policy payout and the actual damage cost.

For a closer look at how condo insurance works in Texas, including how to read your HOA's declarations page to determine which master policy structure you have, see our guide on condo insurance and HOA coverage in Texas.

How to read your HOA's master policy

You have the right to request a copy of your association's master insurance policy. Most HOA boards will provide a certificate of insurance or a declarations page on request. When you get it, look for the following items.

Policy type declaration

The declarations page should state whether coverage is "bare walls," "single entity" (which typically means all-in for original fixtures), or "all-inclusive." If the language is vague, ask the HOA manager or the association's insurance agent directly.

The deductible amount and structure

Look for both the standard AOP (all other perils) deductible and any separate wind, hail, or named-storm deductible. A community in Pasadena or the Houston suburbs near the Ship Channel may carry larger wind deductibles than inland communities. Make sure your HO-6 loss assessment limit covers at least your pro-rata share of the worst-case deductible scenario.

Coverage limits relative to replacement cost

A master policy that is underinsured creates a bigger assessment gap. If the association has not updated its property valuation in several years, be aware that construction costs in Texas have risen sharply since 2020, and the building may be insured for significantly less than it would cost to rebuild today.

Flood and water exclusions

Texas communities in FEMA flood zones should ask whether the HOA carries a separate flood insurance policy for the building. If not, your unit is exposed to flood losses from the walls out, and you will need your own flood coverage for the interior and your personal property.

A practical checklist for Texas condo and townhome owners

• Get your HOA's dec page. Confirm bare walls vs. all-in and note the deductibles.
• Inventory your upgrades. Document any flooring, countertop, cabinetry, or appliance upgrades with photos and receipts so you can set the right dwelling limit on your HO-6.
• Set personal property limits realistically. Add up the replacement cost of your furniture, electronics, clothing, and kitchen equipment. Most people land between $30,000 and $80,000.
• Choose replacement cost value, not actual cash value. ACV policies depreciate your belongings; a five-year-old sofa will pay out far less than what it costs to replace it today.
• Check your loss assessment limit. At minimum, match the per-unit share of your HOA's largest deductible. $10,000 in loss assessment coverage typically adds only a few dollars per month to your premium.
• Ask about flood. If your community sits near a bayou, retention pond, or any low-lying area common throughout the Houston metro, a separate flood policy for your unit's interior deserves a serious look.
• Review annually. HOA master policies renew and change. What your association carried last year may not be the same policy today, particularly in the current hard market for Texas property insurance.

Work with an independent agent who knows Texas HOA coverage

JAMCO Insurance is an independent insurance agency serving Texas homeowners, condo owners, and families across the Houston area. As an independent agency, we compare rates and coverage across multiple carriers rather than locking you into one company's product. That matters when you are trying to match an HO-6 policy precisely to whatever gaps your specific HOA master policy leaves open.

Our team can walk you through your association's declarations page, identify the coverage gaps, and find an HO-6 policy that fits your unit's finish level, your personal property, and your loss assessment exposure. You should not have to guess whether you are covered.

Call us at (832) 777-5260 or visit our contact page to get started. You can also learn more about your options on our condo insurance page. Getting this right costs a lot less than finding out the hard way what your HOA's policy does not cover.