Texas guide
Texas condo insurance requirements
Insurance is the headline risk in a Texas condo purchase. The state led the nation with 20 billion-dollar weather events in 2024, hail struck more than 235,000 homes with 2-inch-plus stones in 2025, and the average wind/hail deductible — roughly $7,761 — is now a standalone budget line.
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Under Tex. Prop. Code §82.111, the association must insure the common elements to at least 80% of replacement cost and carry commercial general liability, but the statute leaves deductibles to the board, does not require flood coverage, and does not cap the percentage wind/hail deductibles that increasingly threaten conventional financing. Reading the master policy's declarations page is inseparable from reading the budget.
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What §82.111 requires
TUCA requires the condominium association, starting no later than the first conveyance, to maintain property insurance on the insurable common elements against direct physical loss (fire plus extended coverage) in an amount at least 80% of replacement cost or actual cash value, plus commercial general liability covering the common elements. For buildings with horizontal (stacked) unit boundaries, the master policy must include the units themselves — a "bare-walls-plus" or single-entity policy — though it need not cover owner improvements. Your own HO-6 policy covers the unit interior, betterments, and personal property.
Percentage wind/hail deductibles can block your mortgage
Section 82.111 lets the board set commercially reasonable deductibles, and Texas does not cap them. Wind and hail deductibles are frequently a percentage of insured value — commonly 1% to 5% or higher for named storms — which on a multimillion-dollar building can run into six figures. Fannie Mae and Freddie Mac generally require master-policy deductibles at or below 5% of coverage, so a high Texas wind/hail deductible can block conventional condo financing outright. Read the declarations page for the wind/hail and named-storm deductible before you assume the loan is clean.
The flood and surge gap
Standard master and HO-6 policies exclude flood, and windstorm policies cover wind and hail but exclude rising water and storm surge — a chronic Texas coverage gap that Hurricane Harvey exposed across Houston. Coastal and flood-zone associations need NFIP or private flood coverage, and lenders require NFIP in mapped flood zones. Confirm whether the association carries flood coverage, whether the building sits in a FEMA flood zone, and what flood obligation falls to you as a unit owner.
TWIA, the FAIR Plan, and surplus lines
If the building is in one of the 14 first-tier coastal counties (or Harris County east of Highway 146), its wind and hail coverage likely runs through the Texas Windstorm Insurance Association (TWIA), the insurer of last resort for wind/hail — but applicants must first be denied by a private carrier, and TWIA covers wind/hail only, not flood. The Texas FAIR Plan (TFPA) backstops fire and other perils for owners denied by two or more carriers, but it does not write wind/hail in TWIA catastrophe areas. A master policy placed in the surplus-lines market, or reliance on TWIA/TFPA, signals carrier scarcity and is worth probing.
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Texas legal references
- Tex. Prop. Code §82.111 — Association insurance; 80% replacement cost, CGL, stacked-unit coverage, deductibles
- Texas Windstorm Insurance Association (TWIA) — coverage & eligibility (14 coastal counties)
- Texas FAIR Plan Association (TFPA) — coverage & eligibility
Informational only. Not legal advice. Always confirm against current statute and counsel.
Need help applying these Texas statutes to your specific situation? We can connect you with state-licensed counsel and specialists familiar with this exact regulatory environment.
Find a Texas specialist →Reviewer's checklist
- Confirm the master policy meets the §82.111 floor: at least 80% replacement cost plus commercial general liability
- For a stacked-unit building, confirm the master policy includes the units (single-entity coverage)
- Read the wind/hail and named-storm deductible on the declarations page
- Flag any wind/hail deductible above ~5% of insured value — it can block conventional financing
- Check whether the association carries flood coverage and whether the building is in a FEMA flood zone
- In the 14 coastal counties (or Harris east of Hwy 146), confirm TWIA wind/hail coverage is in force
- Ask whether the master policy is in the surplus-lines market or relies on TWIA/TFPA (carrier-scarcity signal)
- Review claims history for hail, hurricane (Harvey), and freeze (Winter Storm Uri) losses
- Budget for your own HO-6 policy, including loss-assessment coverage for deductible pass-throughs
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Source documents
- Declaration & bylawsthe rules
- Budget & financialsthe money
- Reserve studythe big repairs
- Meeting minuteswhat the board fears
Cross-reference
The risk lives in the contradiction between documents.
An assessment in the minutes but not the estoppel; a reserve the budget never funds.
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Related risk areas
Read these next to round out your due diligence
Insurance risk
The association's master insurance policy determines what your personal HO-6 policy needs to cover — and what it does not.
Condo Financing Requirements
Getting a mortgage on a condominium is not the same as financing a single-family home.
Special assessments
Special assessments are the single largest source of financial surprise in condo and HOA ownership.
Related reading
Guides for Texas buyers and owners
The Complete Condo Master Insurance Guide (2026)
How master policies are structured, how percentage deductibles create owner exposure, what your HO-6 needs to cover, and what to verify before you close — across Florida, Texas, and Arizona.
Condo Insurance Rates in Florida, Texas, and Arizona: 2026 Update
Insurance is now the dominant operating-cost driver in many condo associations across Florida and Texas. Understand what the 2026 market looks like in each state and what it means for your dues.
Hurricane Deductibles and Loss Assessments: Evaluate Your HO-6 Exposure
Master-policy hurricane deductibles can pass through to you as loss assessments. Understand how percentage deductibles work, how to calculate your real exposure, and what your HO-6 needs to actually cover.
Condo Master Insurance Red Flags: What to Check Before Closing
Master-policy gaps, large deductibles, exclusions, and loss assessments can become the buyer's problem after closing. Learn what each section of the master insurance certificate discloses — and the red flags to check before you close.
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Reviewed by Kirk Hasley, Founder. Every claim here is checked against current Texas statute and primary sources, using the same documented review framework we run on every file. Last reviewed June 13, 2026.
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A special assessment, an insurance non-renewal, a thin reserve study — find out whether it signals real risk, checked against your state's rules, with page citations you can verify. No cost, no obligation.
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We can connect you with insurance brokers, realtors, and mortgage brokers who can help you respond to what your documents reveal.
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