Condo & TownHouse Insurance HO6

In Texas, condo insurance (typically an HO-6 policy) covers the "walls-in" portion of your home, your personal belongings, and your liability. While your Homeowners Association (HOA) master policy generally protects the building's exterior and common areas, your personal policy fills the gaps for everything inside your unit. 

Core Coverage Components

• Building Property ("Walls-In"): Protects the interior structure of your unit, including drywall, flooring, cabinetry, countertops, and built-in appliances.
• Personal Property: Covers belongings such as furniture, electronics, clothing, and kitchenware against fire, theft, or vandalism.
• Personal Liability: Provides financial protection if a guest is injured inside your condo or if you accidentally damage a neighbor's property (e.g., a leak from your unit).
• Additional Living Expenses (Loss of Use): Pays for hotel stays, meals, and other costs if a covered event makes your condo uninhabitable during repairs.
• Loss Assessment: Helps cover your portion of special assessments charged by the HOA if communal damage exceeds the master policy's limits. 

Texas-Specific Considerations

• Weather Perils: Policies typically cover damage from fire, windstorms, hail, and lightning.
• Flood Exclusions: Standard policies in Texas do not cover flood damage. A separate flood insurance policy is required if you are in a high-risk area like the Gulf Coast.
• Wind/Hail Deductibles: Many Texas policies include a separate, often percentage-based deductible specifically for wind and hail damage due to the state's frequent severe storms.
• Master Policy Gaps: Your required coverage level depends on your HOA's specific master policy type:
  • Bare Walls: You must insure everything inside, including fixtures.
  • Single Entity: Covers original fixtures; you only need to insure your upgrades and belongings.
  • All-In: Covers most structural items and improvements; your primary focus is personal property. 

Common Optional Add-Ons

• Water Backup: Covers damage from sewage or drain backups, which are often excluded from base policies.
• Replacement Cost Coverage: Ensures you receive the current market price for new items rather than a depreciated "actual cash value".
• Valuable Items Floaters: Provides extra protection for high-value items like jewelry, art, or specialized equipment that exceed standard policy limits.