Texas Condo Insurance 2025 — HO-6 Coverage & Cost Guide

Texas Condo Insurance (2025): Compare HO-6 Cover, Deductibles & Gaps

Texas condo owners face rising premiums in 2025, averaging $1,285 per year for HO-6 coverage—a 7.1% increase from last year. Understanding what your master association policy covers versus what your personal condo policy must handle is key to avoiding costly claim gaps.

Master vs. Unit Owner Responsibilities

Every Texas condo community maintains a master policy that insures shared structures, roofs, and common areas. However, it typically stops at the drywall or studs of your unit—meaning interior fixtures, flooring, and contents are your responsibility under an HO-6 policy.

Covered By	Common Areas	Interior Finishes	Personal Belongings	Liability Inside Unit
Master HOA Policy	✅ Yes	❌ No (usually excluded)	❌ No	❌ No
Unit Owner (HO-6)	❌ No	✅ Yes	✅ Yes	✅ Yes

Building, Contents & Liability Coverage Explained

Your HO-6 policy covers three major areas: the interior structure (walls, fixtures, flooring), your personal property, and liability for accidents or damages inside your unit.

• Building property: usually $40,000–$80,000 for interior rebuild costs
• Personal property: typically $25,000–$100,000; choose replacement cost (RCV) when available
• Liability protection: $100,000 minimum, but $300,000–$500,000 is advisable
• Loss of use: pays for temporary housing if your condo becomes unlivable after a covered loss

Loss Assessment Coverage

Loss assessment coverage helps pay your share of a special assessment if the HOA’s master policy doesn’t fully cover property damage or liability claims. It’s particularly important after storm or flood-related repairs to common areas.

Example: If a $100,000 roof repair isn’t fully covered by the HOA’s policy and there are 50 unit owners, each could owe $2,000. A $10,000 loss assessment endorsement on your HO-6 policy would reimburse that outlay, subject to deductible.

Deductible Options and Cost Trade-Offs

Most Texas HO-6 deductibles range from $500 to $2,500. Choosing higher deductibles can reduce annual premiums by 8–15%. However, ensure you can afford the out-of-pocket amount during a claim, particularly for water damage or interior rebuilds.

• $500 deductible → higher premium, faster claim recovery
• $1,000 deductible → balanced option for most owners
• $2,500+ deductible → lowest premium, higher out-of-pocket risk

Some master policies also include wind or hail deductibles that may trigger assessments, making personal deductible choices even more critical for Texas coastal condos.

Quote Comparison Checklist

Before renewing or switching your condo policy, compare quotes from at least three insurers using the same coverage inputs:

1. Confirm building vs. contents limits align with HOA bylaws.
2. Check whether water backup and loss assessment are included or optional.
3. Ask about hurricane/windstorm exclusions if you’re near the Gulf Coast.
4. Bundle home + auto policies for up to 15% discounts.
5. Review Texas Department of Insurance complaint ratios for insurer reliability.

Frequently Asked Questions

Does the master policy cover my condo’s interior?

Often not. Most Texas HOA master policies stop at the drywall or structural shell. Interior fixtures, cabinets, and flooring typically fall under your HO-6 coverage.

Is loss assessment coverage worth it?

Yes. It helps cover your share of HOA assessments after large shared losses or master policy deductibles, which can reach thousands of dollars per unit owner.

Is water backup included automatically?

Usually not. You must add an endorsement for sump or drain backup coverage, which typically costs $25–$50 per year and covers interior water damage up to a set limit.

Do HO-6 policies cover special assessments from wind damage?

Yes, if you carry loss assessment coverage and the HOA’s master policy deductible or shortfall results from a covered peril like wind or hail.

Can I shop policies mid-term?

Yes. Texas law allows you to switch carriers mid-term. Insurers will refund unused premiums, and switching after comparing at least three quotes can lower your costs substantially.

Key Takeaways

• Average Texas condo (HO-6) premium in 2025: $1,285/year.
• Master policies rarely cover unit interiors—confirm your HOA’s boundaries.
• Loss assessment coverage is vital for shared property or storm deductibles.
• Water backup protection requires a low-cost add-on endorsement.
• Compare multiple insurers annually for better rates and deductible options.

References

• Texas Department of Insurance (TDI)
• National Association of Insurance Commissioners (NAIC)
• Insurance Information Institute — Condo Insurance Overview

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