Texas • Insurance non-renewal or spike
Texas condo insurance non-renewed or spiking after the hail — what's your real exposure?
Texas insurance isn't a hurricane-only story — it's a hail story, and it's hitting condo associations statewide. A non-renewal or a doubled renewal here usually reflects the catastrophe market, but the deductible structure is where Texas owners get quietly exposed.
The short answer
In Texas, hail is the driver: 235,000+ homes were hit with 2-inch+ stones in 2025, and the average wind/hail deductible runs about $7,761 — often a percentage of coverage that can exceed the 5% lenders allow. Coastal buildings depend on TWIA for wind, and flood is excluded. CondoSignal reads your master policy and HO-6 against the Texas market to find the gap. Free.Texas at a glance
Avg wind/hail deductible
≈ $7,761
Often a percentage of coverage.
Coastal wind
TWIA only
After a private carrier declines.
Flood
Excluded
Needs separate NFIP/private coverage.
Financing cap
5% deductible
Above it can block conventional financing.
Hail, wind, and the deductible trap
Texas master policies increasingly carry percentage-based wind/hail deductibles — the average runs about $7,761, and many exceed 5% of coverage. That matters twice over: a big claim can trigger a per-owner charge to cover the deductible, and a deductible above 5% can make the project non-warrantable for Fannie/Freddie financing, shrinking your resale pool. Premiums grew about 18.7% in 2024 before slowing in 2025.
Coastal wind and the TWIA backstop
In the 14 first-tier coastal counties (plus part of Harris), wind and hail often aren't in the standard policy at all — associations rely on the Texas Windstorm Insurance Association (TWIA), and only after a private carrier declines. Inland, the Texas FAIR Plan (TFPA) is the fire backstop but excludes wind/hail in TWIA territory. Knowing which backstop your building leans on tells you how fragile the coverage is.
The flood gap
Standard master and HO-6 policies exclude flood and storm surge. After events like Harvey, even inland buildings outside mapped zones have taken on water. If your association carries no separate NFIP or private flood coverage, that's an uninsured exposure the documents will show — and one worth closing before the next storm season.
Your rights in Texas
As a Texas condo owner the association must carry property insurance on the common elements (at least 80% of replacement cost) and liability coverage (§ 82.111), and disclose insurance terms on the § 82.157 resale certificate. There's no state insurance backstop specific to condos beyond TWIA/TFPA eligibility. None of this is legal advice — confirm against the current statute and a Texas-licensed broker.
What to check
- Find the wind/hail deductible and whether it's percentage-based.
- Check whether it exceeds the 5% conventional-financing cap.
- Confirm whether the building relies on TWIA (coastal) or TFPA.
- Confirm whether the master policy is 'bare walls' or 'all-in'.
- Check your HO-6 loss-assessment limit against the master deductible.
- Verify whether separate flood coverage exists.
Sources
- Tex. Prop. Code § 82.111 — association insurance(High)
- Texas Windstorm Insurance Association — coverage & eligibility(High)
- Insurify — hailstorms and the insurance crisis(Medium-High)
Educational only — not legal, financial, or engineering advice. Confirm against the current statute and, where it matters, a Texas-licensed professional.
Related guide
Texas insurance risk — the full guide →This page answers what to do right now. For how insurance risk works in Texas — the law, the process, and what to check before you buy or sell — read the full state guide.
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