ANSWER
A condo owner typically needs an HO-6 policy for the unit and personal property, while the condo association’s master policy covers shared building parts like the roof, exterior walls and common areas. In Texas, flood insurance is usually separate, and a lender can require home insurance if you still owe money on the condo.
YOUR NEXT DECISION
Turn the answer into your next step
- Get the condo association’s master-policy summary before you shop.
- Buy an HO-6 policy for your unit and belongings.
- Add separate flood insurance if needed.
- Review loss-assessment coverage and the deductible risk from the master policy.
- Confirm any lender-required coverage limits and replacement-cost rules.
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For a condo, the usual policy is HO-6 condo insurance. It covers your unit and its contents, while the association’s master policy handles shared property such as the building structure and common areas.
- HO-6 is the condo owner’s policy.
- The master policy is sometimes called HOA insurance.
- The association policy typically covers the roof, foundation, exterior walls and shared spaces.
What it usually does not cover
Flood damage is typically excluded from condo and home policies, so flood insurance is usually a separate policy. Texas also says most home policies do not cover flooding, and flood policies can have a 30-day waiting period before coverage starts.
- Flood insurance is normally separate.
- Do not wait for an approaching storm to buy it.
- Texas says flood coverage is available through an insurer or the National Flood Insurance Program.
How much extra protection to consider
HO-6 policies often include very limited loss-assessment coverage, commonly just $1,000, even though some carriers offer higher endorsements. The source recommends looking at the condo association’s master policy first and seeking at least $50,000 in loss-assessment coverage when possible.
- Loss assessments can be billed to owners after covered building damage or liability claims exceed the master policy.
- High master-policy deductibles can also be passed on to owners.
- Check the association documents before choosing your limit.
Texas-specific practical step
Texas does not require home insurance by law, but a lender will require it if you still owe money on the condo. Texas also says policies have dollar limits and many companies require you to insure at least 80% of replacement cost, with some requiring 100%.
- Ask your lender what coverage they require.
- Match the policy limit to the condo’s replacement-cost requirement.
- Use the Texas Department of Insurance to compare policy basics and market information.
Sources
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