CONDO MASTER INSURANCE POLICY IN TEXAS

What is a condo master insurance policy?

Condominium associations in Texas are normally responsible for insuring their complex’s common areas. One of the most common ways to meet this responsibility is by purchasing a condo master insurance policy.

A condo master insurance policy offers specialized commercial insurance for condominium complexes. Policies typically protect against property and liability risks posed by a complex’s common areas.

What Texas condominiums should have condo association insurance?

Most condominium complexes in Texas should be insured with condo association insurance. Not purchasing proper insurance could result in large losses being passed onto individual condo unit owners.

In some cases, condominium associations might be obligated to have certain insurance coverages in place. Associations that have loans on their buildings or other structures are often required by the terms of their loan to insure the financed structures.

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What common areas does condo association insurance help protect?

Condo association insurance may cover many different common areas that complexes typically have. Depending on a particular policy’s terms and conditions, it might cover:

  • Exterior Areas (e.g. walkways, courtyards, basketball courts, fields)
  • Exterior Structures (e.g. fences, gazebos, garbage sheds)
  • Interior Passageways (e.g. foyers, hallways, elevators, stairs)
  • Amenities (e.g. pools, fitness rooms, community rooms, business centers)
  • Maintenance Areas (e.g. HVAC rooms, utility closets, maintenance sheds)

An insurance agent who specializes in condo association insurance can help associations find a policy that provides robust protection for their common areas.

What are the different types of condo master policies?

Condo master policies are often underwritten as bare walls-in, single entity, or all-in policies. The differences between these policy types lie in what features they cover within condominium units:

  • Bare Walls-In: Normally covers only the most basic elements of condominium units, often limiting protection to walls, electrical and plumbing
  • Single Entity: Normally adds coverage for basic features that condominium units come with, often including standard flooring, cupboards, counters, etc.
  • All-In: Normally adds coverage for upgraded original features, possibly including hardwood floors, granite countertops, fireplaces, etc.

All-in policies are also called “modified single entity policies.”

Which type of policy a condominium association purchases is up to its board (or members). Associations might purchase a bare walls-in policy if they want to keep premiums as low as possible. An all-in policy might be used to insure a luxury condominium complex, if unit owners can afford the higher premiums.

A knowledgeable insurance agent can help associations decide what type of policy they’d like to carry.

Condo Insurance in Texas

How much does insuring a condominium complex cost?

The premiums for condo master policies vary according to many factors. A complex’s location, size, age, construction, features, and other details can all impact cost. So too can many other details that insurers might ask for.

Because premiums vary across policies, associations should check customized quotes to find out how much their complex will cost to insure. An independent insurance agent can assist with getting quotes from several different insurers.

Whatever the cost of a condo master policy, that cost is typically passed onto unit owners as part of their monthly HOA fees. For this reason, association boards should consider policy costs in light of how much the average unit owner would like to pay.

How can Texas condominium associations get a condo master insurance policy?

For help insuring a condominium complex that’s in Texas, contact the independent insurance agents at Wise Insurance Group. Our agents will work closely with you to determine what type of policy and what coverages are needed. We’ll then help you compare different policies that meet those requirements, so you can select the best available condo master insurance policy for your complex.

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