Condo Insurance in Houston: What Your HOA Covers and What It Doesn't

Two Policies, One Building

When you own a condominium in Houston — whether in Greenway Plaza, Upper Kirby, the Galleria area, or any of the high-rise and mid-rise developments that have shaped the city's inner loop — there are two layers of insurance covering the structure you live in.

The first is the HOA's master policy: the building-level coverage that your association carries and funds through your monthly dues. It covers the structure itself — the roof, exterior walls, common areas, lobbies, elevators, and shared systems. What it covers inside your unit depends entirely on the type of master policy the HOA has purchased — and most condo owners don't know which type they have.

The second layer is your individual HO-6 policy: the coverage you purchase for your unit, your personal property, your liability, and whatever the master policy leaves exposed inside your walls. Understanding how these two layers interact — and where the gaps are — is the core of condo insurance literacy.

The Three Master Policy Types

Bare walls-in: The master policy covers the structure up to the unfinished interior surfaces of your unit — the concrete or drywall behind your paint, the subfloor beneath your flooring, the rough plumbing and electrical inside the walls. Everything from the bare wall inward — your flooring, cabinetry, countertops, appliances, fixtures, and all finish materials — is your responsibility to insure. This is the most common type in older Houston condo buildings and creates the largest gap for individual unit owners.

All-in (or all-inclusive): The master policy covers everything in the original condition the developer delivered — including your finished floors, cabinetry, and fixtures — but typically not your personal property or improvements you've made since purchase. This is more generous to unit owners but still leaves gaps for renovations and personal belongings.

Single entity: Somewhere between the two above — the master policy covers original fixtures and installed property in your unit, and your HO-6 fills in around it. Less common than the other two types.

The only way to know which type of master policy your building carries is to read the HOA's declaration and the certificate of insurance — or ask your HOA manager directly. This matters for sizing your own HO-6 coverage.

What Your HO-6 Should Cover

Dwelling coverage (Coverage A on an HO-6): This covers the interior of your unit — from the bare walls inward, or from wherever the master policy's coverage ends. If you have a bare walls building, your HO-6 dwelling coverage needs to cover everything: flooring, cabinetry, countertops, appliances, bathroom tile, and finish materials. The cost to replace all of that in a modern Houston condo can easily reach $50,000–$100,000 or more in a mid-size unit.

Personal property (Coverage C): Your furniture, clothing, electronics, and belongings — not covered by the master policy under any scenario. Texas condo owners commonly underestimate the value of their personal property. A room-by-room inventory often reveals $80,000–$150,000 or more in a well-furnished Houston condo.

Loss assessment coverage: If the master policy has a large deductible and the HOA special-assesses unit owners to cover a covered loss to common areas, loss assessment coverage on your HO-6 pays your share of that assessment. This is not a theoretical risk. As Texas carriers have pulled back from the wind and hail market, HOA master policy deductibles have risen sharply — $25,000 to $100,000 deductibles for wind and hail are increasingly common in Houston condo buildings. When the building files a claim and that deductible applies, the HOA divides the cost among unit owners as a special assessment. In a 40-unit building with a $100,000 deductible, that's $2,500 per unit — often payable within 30 to 60 days with little advance notice. In buildings with fewer units or larger deductibles, the assessment per unit is higher. Loss assessment coverage at adequate limits — $25,000 or more — is not optional for Houston condo owners.

Liability: Standard personal liability for injuries to guests in your unit, as well as liability for water damage your unit causes to a unit below you.

Flood Insurance and Condos

Flood insurance for condos works differently than for single-family homes, and the distinction matters greatly in Houston. The HOA may carry a building-level NFIP flood policy under the Residential Condominium Building Association Policy (RCBAP) — this covers the structure and, depending on the policy, may include some unit improvements. Individual unit owners can purchase NFIP flood coverage for their personal property under a separate dwelling form.

Private flood insurance for condos is also available and can offer higher limits and broader coverage than the NFIP options. If you're in a Houston high-rise or mid-rise that's in or near a flood zone — or simply in a city where Harvey demonstrated that flood damage can reach surprising elevations through parking garages, lobbies, and electrical systems — understanding the building's flood coverage and your individual exposure is important.

Ask your HOA: does the building carry an NFIP flood policy? What are the limits? What is the deductible? The answers tell you what your individual flood exposure is and whether a separate personal property flood policy makes sense.