Best Condo Insurance In Texas For 2025

Last year, Texas had 141 days with large hail, the biggest in any year since 2003. This caused damage to over 2 million homes, more than any other state, and resulted in a significant uptick in condo insurance claims.

Texas also saw several severe thunderstorms which resulted in tens of billions of dollars in insurance claims. These increased claims have led to higher premiums overall especially in locations that are prone to such natural disasters.

Other factors include increasing inflation and labor costs. Since 2018 Texas condo owners have seen an increase of 50.9% in their insurance rates, the highest across the United States.

In this guide, I’ll offer tips on finding affordable condo insurance in Texas. With my background as a licensed insurance agent in the State, I stress the need for proper condo insurance. It’s not only about safeguarding your finances but also about achieving peace of mind.

Is Condo Insurance Required in Texas?

Yes, the Texas Uniform Condominium Act (TUCA) requires all condominium associations to carry insurance regardless of age. Each condominium association must maintain insurance to cover against common issues like fire damage, valued at least 80% of the cash value or replacement cost of the property.

• Condo owners themselves who rent a condo do not have to carry condo insurance in Texas.
• Condo owners who purchase a condo will typically need an HO-6 insurance policy because of their mortgage.

Given that a condominium association is legally required to carry insurance, some of that cost can be put on to the condo owners directly or through a legal requirement to carry minimum coverage.

How Much Condo Insurance Do I Need In Texas?

Given that Texas requires condo associations to carry Insurance one of the most important factors when picking the coverage amount for your condo is what gaps exist between the master policy and what you need covered.

For example:

Some condo policies have a loss assessment while others only provide loss assessment as an add-on or rider. Where included, the coverage limit is usually a low amount around $1,000 so if you want more than that you might need an add-on. This is especially important if your master policy from the condo association has a very high deductible.

What Does Condo Insurance Cover In Texas?

Condo insurance held by the association covers the exterior building, but an HO-6 policy, the kind that a condo owner can take out, protects the interior of the building including fixtures, flooring, cabinets, and walls. It also protects personal belongings against covered losses like theft and damage.

In Texas condo insurance covers assessments for shared losses as well as personal liability and loss of use.

You can take out policies with liability coverage between $100,000 and $500,000 as well as loss assessment up to $1,000 but you can increase the loss assessment with endorsements to help cover any costs for damage to shared areas as required by your condo bylaws.

How To Get An Online Condo Insurance Quote In Texas

To find the best policy for protecting your Texas condo, it’s wise to request quotes from several home insurance providers within the state. A great resource for comparing different insurers and their coverage options is Insuranceopedia.

To obtain accurate quotes, you’ll need to provide specific information, such as:

• Personal information: This includes your name, address, insurance history, and the number of residents in your condo.
• Personal property value: What is the value of the personal items you want to insure?
• Replacement cost of your condo: What is the estimated cost to rebuild your unit with the same materials if it were damaged?
• Condo details: You’ll need to provide details about your condominium, such as its age, square footage, type of exterior walls, and safety features installed.

How To Find The Best Condo Insurance Company For You

Your condo may be one of your most valuable assets, so securing quality insurance coverage is essential to protect against potential financial loss. Finding the right policy tailored to your needs will require some time and effort.

When you are ready to pick a policy, take time to review all of the major companies that are offering condo insurance in the state. Always make sure you pick a company that has licensed agents in the area.

It is best to pick at least three companies to compare side by side and you can get quotes from these companies through an online process that you handle yourself or with help from an agent by calling the companies directly.

When you do this, consider things beyond the premium such as potential discounts for military or seniors, bundling, or professional affiliations. Check on the financial stability of that company and what coverage options they have in your area. Don’t be afraid to look into customer reviews particularly reviews on things like the Better Business Bureau where you can see what the claims process has really been like for other clients.

Once you pick your policy, you can immediately enforce the policy which goes into effect after paying your premiums.

To make the process simpler, here are five steps you can take to protect yourself, your family, and your belongings:

1. Determine the amount of condo insurance coverage you need.
2. Search online for condo insurance companies and choose three that you trust the most.
3. Request quotes from each of these three providers.
4. Compare their coverage options, rates, financial stability, customer reviews, and discounts.
5. Apply for coverage with the provider that offers the best deal.

How Much Is Condo Insurance In Texas?

Condo insurance isn’t the same for everyone. To help you make an informed decision, I’ve put together the following home insurance costs in Texas comparison tables:

The Average Cost Of Condo Insurance By City

The next table illustrates the average monthly and annual condo insurance costs for residents in 10 of Texas’s largest cities.

Average Cost Of Condo Insurance By Building Property Limits

The appropriate amount of condo insurance depends on the value of your condo and personal belongings. The following table compares average annual rates for various building property limits in Texas.

Average Cost Of Condo Insurance By Company

The final table compares the average annual cost of condo insurance in New York across 10 major national insurance companies.

Keep in mind that the costs shown in the tables are estimates and may vary based on factors such as your insurance needs, your condo’s location, and its structural characteristics.

Also, don’t focus solely on the cost when selecting a policy. Besides affordable rates, ensure you get comprehensive coverage and choose an insurer with strong financial ratings and excellent customer service.

Factors That Impact The Cost Of Your Condo Insurance Policy

The cost of condo insurance in Texas primarily depends on these four factors:

Replacement Cost Of Your Condo

Typically speaking you should get enough insurance to cover the estimated reconstruction cost per square foot, or 20% of the appraised value of your condo. However your lender or condominium association might have requirements beyond this.

If the cost for labor is higher in your town than the state average, you can expect higher premiums as part of your condo insurance in Texas.

Claims History

Moreover, a history of claims can result in higher premiums much the same as a clean claims history can help you negotiate for lower premiums in Texas.

Physical Address

If your condo is located in a high-risk area in Texas, such as one with a high crime rate or frequent severe weather, you can expect higher insurance costs. Frequent wildfires in Texas also contribute to higher condo insurance premiums.

Age And Construction Type Of Your Condo

If you have an older condominium, you will have an increased risk of claims and subsequently an increase in your premiums. Moreover, insurance companies will look at the materials used in the covered areas like the flooring and fixtures to determine whether the insurance premiums will go up or down.