Condo Insurance in Texas

Condo insurance is also known as HO6 insurance and its purpose is to help condo owners protect their property similar to how a home insurance policy works for homeowners. There are many areas in Texas, especially within growing urban centers, that are seeing an increase in condo developments being built. Without proper coverage, owners may find themselves facing large financial hurdles after suffering a loss that could result in them losing their property, shelter, and their financial footing.

For most, condo insurance (HO6) is required by their lender when purchasing a home. There are also potential restrictions that may be in place due to various associations, such as an HOA, to live within certain communities. Both renters and condo owners are highly advised to purchase some form of coverage. Let’s explore the many coverage options you have available to help you stay protected against many perils that could harm your condo.

HO6 Insurance Coverages Explained

So, what does condo insurance cover? Well, that depends on the type of coverage you enroll in. Texas condo insurance will help you in a variety of ways by protecting your unit, personal belongings, and even against personal liability issues that may arise. Let’s explore the most common forms of condo insurance coverage available to you:

Dwelling Coverage

Everything used to construct your condo from the drywall of your condominium unit inward is covered by dwelling coverage. The rule of thumb for condo insurance is to make sure that you have enough dwelling coverage to successfully rebuild your condo rather than coverage based on the price you purchased your unit for.

Personal Property Coverage

Your personal belongings are protected with personal property coverage, though policy limits and exclusions will apply. Many insurance providers will provide coverage that combines both dwelling and personal property coverages as one.

Liability Coverage

An HO6 insurance policy can provide liability coverage in the event someone is injured while visiting your condo.

Loss-Of-Use Coverage

If your condo requires major repairs and is no longer livable, you can use loss-of-use coverage to help pay for food and boarding expenses during the construction. Policy limits do apply.

Condo Association Insurance/Condo Homeowners Insurance

The homeowners association (HOA) you are a part of will have a master insurance policy to help protect shared areas within your condo development. This is paid for in part by your HOA fees. Some examples of the areas protected by this master policy include pools, elevators, recreational rooms/gyms, basketball courts, and more.

Different limits and exclusions will apply to your policy but this can vary from complex to complex based on the perils your condo may face. Here are the three types of master insurance policies used by condo associations:

1. All-In Coverage is the most complete form of protection out of these three coverages. When you enroll, you are receiving protection for all of your property and the fixtures inside your unit. Personal property is not included and you will need personal property coverage for protection.
2. Bare Walls Coverage will protect shared areas, such as property owned by your condo association,  but doesn’t cover your interior walls or the fixtures inside your unit.
3. Single Entity Coverage includes coverage for common areas and property owned by your condo association, as well as fixtures inside your unit, as well as any structures connected to your unit on the date it was originally built.

Condo home insurance, condo building insurance, HOA insurance…it all goes by many different names, but it’s important to understand how these coverages work and the difference between them and your HO6 insurance policy.

The key to remember is that if it’s an area that is shared by other residents such as a garage or stairwell, your HOA insurance will come into play. For protecting your individual unit as well as possessions inside, you’ll need to purchase the appropriate condo insurance coverages that fit your needs.

Loss Assessment Coverage

If an accident occurs in a shared area of the condo, your HOA insurance will cover the incident, however, if damages are more than the master policy’s limits, the difference could come from you and your fellow condo residents. Loss assessment coverage helps cover these costs with condo owners allowed to set their policy limits according to their risk tolerance.

How Much Is Condo Insurance in Texas?

Your condo insurance cost in the state of Texas will depend on various factors that go into calculating your premium. Things such as where your condo is located and the amount of coverage you’ll need will play a part in determining how much you’ll need to pay in premium. Here are commonly assessed factors condo insurance companies are going to be looking at when calculating how much you’ll spend:

• The master policy for your condo association.
• Where your condo is located.
• The age of your condo, its building materials, and its condition.
• The amount of coverage you purchase.
• Your deductible.
• Your credit history.

All of these factors will be assessed by your condo insurance provider with one goal in common: assessing how much risk you pose as a client. If it’s riskier to insure your condo, expect to pay more in monthly premiums. If your condo comes with less risk, then you will likely pay cheaper costs for your premium.

But the reason condo owners will find themselves paying different rates at different insurance brands is that the risk factors may be somewhat simple, but each brand uses its own algorithm to compute these risks which determine your premium.

This is why it is so important to compare your HO6 condo insurance coverage among various insurance brands to be sure that you aren’t overpaying for protection. On average, Texas condo insurance coverage can cost several hundred dollars per year. But again, this rate will vary and can even be reduced through comparative shopping and by applying the right discounts.

How Condo Insurance Works in Texas

Just as traditional homes have various perils to worry about, so too do condos. In many ways, an HO6 insurance policy acts similarly to an HO3 standard home insurance policy. Here are common perils you’ll be protected from with condo insurance coverage:

 

• Accidental water and steam overflow
• Aircraft damage
• Damage caused by vehicles
• Explosions
• Falling objects
• Fire and lightning damage
• Freezing
• Riots/civil commotion
• Smoke damage
• Sudden and accidental damage caused by an artificially generated electrical current
• Sudden and accidental damage to an appliance
• Theft/mischief/vandalism
• Volcanic eruptions
• Weight of ice, snow, & sleet
• Windstorm and hail damage

Just as a homeowners policy won’t cover everything, your condo insurance policy is not blanket coverage either. Common exclusions to your protection include flooding, general wear and tear, acts of war, earthquakes/earth movement, pest infestations such as termites, and damage to utility lines.

Does Condo Insurance Cover HVAC in Texas?

Condo insurance may cover damage to your HVAC unit, however, which coverage will be responsible depends on where your unit is located.

If your HVAC unit and its components are shared among multiple units, then your condo association insurance will likely be the policy covering the damage. On the other hand, if your individual unit has HVAC units that are unique to only your individual unit, then your personal condo insurance will be the policy to rely on.

Is Texas Condo Insurance Cheaper Than Home Insurance?

Generally, yes! The amount you pay for your condo insurance policy will depend on a lot of things, but the amount of coverage you need is a big reason prices are as high as they are for homeowners and condo owners. Because condos on average require much less dwelling coverage than a traditional home, you can expect to pay less than homeowners will pay for your protection.

Get Your Texas Condo Insurance Quote

Condo insurance quotes can help you better understand how much you can expect to pay for your condo insurance policy. Here are the top ten cities in Texas which have the highest percentage rates of apartments/condo units in the state:

1. South Padre Island, Texas
2. Addison, Texas
3. Webster, Texas
4. Port Aransas, Texas
5. Dallas, Texas
6. Houston, Texas
7. Irving, Texas
8. Pasadena, Texas
9. Euless, Texas
10. Clute, Texas

 

Regardless of where you live, Freedom Insurance Group is here to help you find affordable protection that you can rely on. The best condo insurance is a policy that saves you money while keeping you protected from the perils that could cause you harm.

We work with more than 25 of the top-rated insurance providers in Texas and have been helping Texans since 2005. Through our extensive network of providers available to clients through our insurance center, we can provide you with the best policy for your needs by comparing your coverage among trusted brands and finding the lowest price available.

It doesn’t matter if you are moving into a condo on the beach, settling in for a new job around Austin, TX, calling El Paso home, or anywhere else in the Lone Star State, we’ve got you covered! Contact us today for an accurate condo insurance quote and to learn more about how much you can save on your coverage.