🏘️ HOA INSURANCE SPECIALISTS

HOA Insurance in Texas

Reviewed by Patrick Henigan, CIC · Licensed commercial insurance agent · Policies serviced by Direct Insurance Services

Gulf windstorm and flood exposure, the freeze event that reset expectations, and tightened board fining procedure — read against your master policy and board coverage.

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Takes ~2 minutes · We review your governing docs · Coverage matched to your requirements

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Quick answer

Does Texas require HOA insurance?

Condominiums

Required by state law

Property on the common elements (and the units in stacked buildings), plus general liability.

Planned communities

Your declaration decides

Most require property, liability, D&O and crime coverage.

For condominiums, yes. The Texas Uniform Condominium Act requires the association to carry property insurance on the common elements, and on the units themselves in stacked buildings, plus general liability. For planned communities, there's no statewide mandate. Your declaration decides, and most require property, liability, D&O and crime coverage. The question that matters for your board is narrower: does your master policy actually match what your declaration requires?

Have us check yours →

We read your declaration and master policy side by side, on video.

Example Scenarios

HOA Coverage Scenarios

Example scenarios based on the coverage gaps HOA boards and condo associations in Texas and other states commonly face.

Editorial illustration representing single-family HOA risk
Small HOA

Townhome community in Frisco, Collin County.

The Situation

Consider a 38-unit attached-townhome community built 2010, with a three-member volunteer board. The community maintains a shared driveway, common landscape, retention basin, and mail kiosk. A board fining action against an owner over a non-conforming xeriscape conversion escalated when the owner alleged the board had not followed Chapter 209's fining rules, including HB 614's fine-schedule requirement. The owner counter-claimed alleging breach of board duty and statutory violation.

What We'd Do

We'd read the architectural guidelines, the fining file, and the existing master policy and D&O endorsement together. That review would show that Chapter 209's fining rules, including HB 614's fine-schedule requirement, created multiple wrongful-act windows on every defective fining action. We'd review the wrongful-acts definition for fining-procedure scope, the discrimination-defense extension for FHA/TFHA-related counts, and the master policy GL coordination on personal-and-advertising-injury claims. We'd source a renewal program with broad-form wrongful-acts definition and updated fining-procedure documentation built into the underwriting submission.

🎯 The Result

The D&O endorsement would respond to the breach-of-board-duty count, with defense paid outside the indemnity limit. The general liability policy would be tendered on the personal-and-advertising-injury element. Resolution could include rescission of the fines and updated fining procedures compliant with Chapter 209's fining rules, including HB 614's fine-schedule requirement. The carrier would likely condition renewal on documented post-reform fining-procedure compliance; the board would absorb defense costs and procedural-overhaul investment. Texas Property Code provisions for residential property owners' associations specify open meetings, notice requirements, and collection procedures with detailed framework. Chapter 209's fining rules, including HB 614's fine-schedule requirement, set the procedure boards must follow before any fining action. Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Boards enforcing pre-reform architectural guidelines face misenforcement exposure on every related fining action.

Editorial illustration representing condo association risk
Mid-Size Condo

Mid-rise condominium in Houston's Galleria area, Harris County.

The Situation

Consider a 90-unit single-building mid-rise condominium built 2007, with below-grade parking, rooftop pool, and shared HVAC. Seven-member board with professional management. A hurricane-driven storm event caused widespread water intrusion through the building envelope, with damage extending across multiple floors. Master property and flood policies responded but were below the cost of full restoration. Several owners alleged the board had failed to maintain adequate coverage and had not implemented mitigation recommendations from a prior building-envelope study.

What We'd Do

We'd read the building-envelope study, the master flood policy, the master property policy, and the existing D&O endorsement together. We'd flag the documented-notice period created by the prior envelope study and the inadequate-coverage allegation as the central wrongful-act window. We'd review master flood policy coverage limits against actual replacement-cost reality on common elements, the master property policy's named-storm and windstorm endorsement language, and the D&O wrongful-acts definition for coverage-adequacy claims. We'd source a renewal program with adequate flood and named-storm coverage, broad-form wrongful-acts definition, and documented mitigation plan.

🎯 The Result

The master property and flood sections would respond up to their caps. The general liability policy would respond to slip-and-fall claims during restoration staging. The D&O endorsement would respond to owner allegations regarding coverage adequacy and deferred mitigation. Coverage adequacy review would become a board priority post-loss; the carrier would likely condition renewal on excess-flood layer placement and documented building-envelope mitigation funding plan. Reserve-funding adequacy and post-Harvey resilience documentation would become renewal underwriting conditions across the program. For condominiums, Property Code 82.111 requires property and liability coverage, to the extent reasonably available. Houston's post-Harvey flood-resilience attention has produced board-level scrutiny on flood-policy adequacy across condominium associations citywide. Texas Insurance Code provisions on windstorm coverage interact with HOA master policies in coastal counties; named-storm endorsement language and TWIA-equivalent windstorm coverage shape what actually responds at claim time. Federal NFIP coverage limits typically require excess flood layers for coastal and Gulf-affected condominium properties.

Editorial illustration representing mixed-use community risk
Master-Planned

Master-planned community in The Woodlands, Montgomery County.

The Situation

Consider a 2,000-residence master-planned community spanning single-family, attached, and condominium product types, with community-wide pools, golf adjacency, walking trails, and large open-space common areas. Eleven-member professional-managed board with full-time executive director and sub-association structure. A multi-pronged owner dispute alleged improper use of association funds, defective fining procedures across multiple owner enforcement actions, selective enforcement on architectural guidelines, and improper use of the foreclosure-priority lien process.

What We'd Do

We'd read the bylaws, the fining file, the foreclosure procedure documentation, and the existing master policy and D&O endorsement together. That review would show that the multi-pronged claim posture created wrongful-act windows on every defective enforcement decision, every foreclosure-procedure shortcut, and every architectural-review denial. We'd review the wrongful-acts definition for broad-form scope, the foreclosure-procedure compliance posture under Texas Property Code framework, and the discrimination-defense extension for FHA-related counts.

🎯 The Result

The D&O endorsement would respond to the breach-of-board-duty, selective-enforcement, and procedural-defect counts. The general liability policy would be tendered on the personal-and-advertising-injury elements. Defense costs would be significant given the multi-count nature; the broad-form wrongful-acts definition would control which counts the D&O endorsement reaches. Foreclosure procedures would likely be rolled back and reformed during litigation. Coverage adequacy review and a documented enforcement-and-foreclosure-procedure overhaul would become renewal underwriting conditions. Texas Property Code provisions for residential property owners' associations cover open meetings, notice requirements, collection procedures, and foreclosure-priority lien procedures with detailed framework. Chapter 209's fining rules, including HB 614's fine-schedule requirement, add further procedural duties. Property Code Chapter 209 sets strict rules on when and how a property owners' association can foreclose on an assessment lien (209.009–209.011); condominiums follow 82.113. Boards that cut corners face D&O claims.

Bobby Friel, Partner at Direct Insurance Services

Bobby Friel

Partner, Direct Insurance Services

When did your D&O endorsement last get read against Chapter 209's fining rules, including HB 614's fine-schedule requirement, and Texas's protected-installation framework — the separate statutes governing solar, flag, religious displays, and political signs? In Texas, those reform stacks decide whether your wrongful-acts definition actually responds — and the gap between what the policy was bought to do and what the reforms now demand opens up fast here. Your association has changed since the master policy was last actually read. Chapter 209's fining rules, including HB 614's fine-schedule requirement, raise the procedural bar, and the wrongful-acts trigger that used to cover routine enforcement now needs broad-form scope. Post-Harvey master-policy flood adequacy has tightened against replacement-cost reality. Separate Texas statutes (Property Code Chapter 202 and Election Code 259.002) preempted pre-reform architectural guidelines on solar, flag, religious-display, and political-sign installations — religious displays specifically under SB 581 — and boards still applying pre-reform guidelines face misenforcement exposure under TFHA scope. Tracking every Texas Property Code wrinkle, every reform-stack wrongful-acts boundary, every TWIA windstorm coordination decision isn't your job. The renewal cycle doesn't make room for reading governing documents, the fining and foreclosure procedures, and the master policy together — and most Texas associations have never had that session. What we do is sit down with you, your CAM, and your board if you want them — and read your declaration, your reserve study, your fining and foreclosure procedures, and your master policy together on video. We map governing-document obligations against the policy form and the reform stack. So when a fining-procedure complaint or a coverage gap shows up, the policy answers for the association you actually have. What's your current master policy doing for your reserve obligations and for Chapter 209's fining rules, including HB 614's fine-schedule requirement, right now?

When was the last time anyone read your CC&Rs and bylaws against your actual policy schedule?

On Video Before Binding

Two Videos Worth Watching Before You Submit a Quote

Nobody wins if there are coverage gaps. Our team reads governing documents, master-policy forms, and bond schedules before binding — so the policy actually meets the requirements your community is already obligated to carry. Watch both before you submit.

Watch: How HOA insurance actually works

Bobby Friel · Partner, Direct Insurance Services

Watch: A real commercial policy review

Patrick Henigan · Licensed Agent, Direct Insurance Services

Communities We Insure

Association Types We Insure in Texas

Every community has different exposures. We match your association to the right carrier and coverage program.

Single-Family HOAs

Common-area-only master policy, board D&O for covenant enforcement, vendor COI verification

Condo Associations

Master policy form (bare-walls vs all-in) read against governing documents, unit-owner HO-6 gap mapping

High-Rise Condominiums

Higher-limit master policy, elevator and amenity GL exposure, ordinance-and-law for code-upgrade rebuilds

Townhome Associations

Shared-wall and roof allocation in CC&Rs, fidelity bond sized to assessments + reserves

55+ / Active Adult Communities

Slip-and-fall frequency, amenity-program GL, HOA-mandated services liability

Resort & Vacation Communities

Short-term rental coordination, seasonal-occupancy property exposure, transient guest GL

New Development HOAs

Developer-to-board transition, declarant warranty coordination, reserve study at handoff

Amenity-Heavy Communities

Pool, gym, clubhouse GL, attractive-nuisance exposure, vendor-COI verification on amenity contracts

Golf Course Communities

Course-property exposure, errant-ball claims, golf-cart auto liability, irrigation-system property

Mountain / Ski Communities

Snow-load property risk, wildfire exposure, freeze-loss claims, remote-location loss-control

Gated Communities

Access-control liability, security-vendor coordination, perimeter and entry-system property

Mixed-Use Associations

Commercial + residential allocation in master policy, lender-driven coverage, unit-owner GL coordination

📝 Helpful to Have

What Helps Us Build the Right Policy For Your Association

The more we know about your governing documents, your buildings, and your operational profile, the more precisely we can match coverage to your real obligations. Here's what helps — and if you don't have all of it, we'll work through it together.

Current declaration pageShows existing coverage limits, deductibles, and endorsements
Loss runs (past 5 years)Claims history from your current carrier — we can request these for you
Property details (units, year built, roof updates)Number of units, construction type, year built, and recent renovations
Claims frequencyHow often and what type of claims your association has filed
Governing documents (CC&Rs, bylaws)So we can verify your policy meets your own requirements
Building appraisal or replacement cost estimateEnsures proper coverage limits — we can help arrange an updated appraisal
Prior board insurance correspondencePast renewal proposals, claims history letters, or insurance disclosures shared with owners
Vendor COI compliance fileSnow-removal, landscape, pool-service, and management-company certificates of insurance with current expiration dates
Start an HOA Policy Review →

We walk through these on the call — bring what you have

Coverage Lines

HOA Insurance Coverage in Texas

A complete HOA insurance program combines multiple coverage types to protect your Texas association, your board members, and your community's financial assets.

ESSENTIAL

Property Insurance (Master Policy)

  • Common areas, shared structures, and fixtures the HOA owns or maintains
  • Form type ("all-in" vs. "bare walls") read against governing documents
  • Hurricane and windstorm deductibles read for the community's geography

Property insurance — the HOA's master policy — covers the buildings, common areas, fixtures, and shared structures the association owns or maintains. It responds to fire, wind, theft, vandalism, and most named perils that damage what the community owns in common. What it covers depends on whether the policy is written "all-in" (including unit improvements), "bare walls," or somewhere in between. The form difference is where most master-policy gaps surface at claim time. For condominiums, Property Code 82.111 requires property and liability coverage, to the extent reasonably available. For other property owners' associations, the declaration controls. Fidelity and D&O requirements come from your governing documents, lenders and good practice — not a Texas statute. Hurricane and Gulf-coast severe-weather exposure on Houston, Galveston, and Corpus Christi communities drives deductible math.

ESSENTIAL

Commercial General Liability

  • Defense and indemnity for third-party bodily injury and property damage
  • Hurricane-aftermath and storm-response exposure mapped against the policy term
  • Common-area coverage read against the governing documents

General liability covers the association when third parties — guests, vendors, residents, the public — claim bodily injury or property damage tied to common-area operations. Slip-and-falls on shared walks, pool incidents, dog-park bites, gym-equipment failures, parking-lot accidents — these are the claims the policy was built for. What it doesn't cover is what the board did or didn't do as a governing decision. That's a different policy. TX common-area exposure runs heavy on hurricane-aftermath and storm-driven slip-and-fall claims at Gulf-coast and Houston-area communities, vendor-injury claims at master-planned suburban amenities, and pool-area incidents at high-density Dallas-Fort Worth and Austin metro communities.

CRITICAL FOR BOARDS

Directors & Officers (D&O) Liability

  • Defense and indemnity for board management-decision claims
  • Discrimination-defense extension verified for FHA and TFHA claims
  • D&O defense coverage that volunteer-director protections don't provide

Directors & Officers liability covers board members when an owner, vendor, or third party sues over management decisions. Claims involving the board's handling of reserve studies, special assessments, architectural enforcement, vendor selection, or interpretation of governing documents land here. CGL doesn't reach these — they aren't bodily injury or property damage claims. They're claims about how the board governed. D&O is the policy that responds. Texas Property Code provisions for residential property owners' associations specify open meetings, notice requirements, and collection procedures with detailed framework. Chapter 209's fining rules, including HB 614's fine-schedule requirement, add another procedural layer. Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Texas Fair Housing Act runs parallel to federal FHA — Texas and federal fair housing law offer parallel remedies.

ESSENTIAL

Crime / Fidelity Bond

  • Theft of funds by employees, officers, managers, or vendors
  • Coverage tied to peak annual reserve balance, not average
  • Master-planned capital-project balances considered for limit sizing

Crime or fidelity coverage protects the association against theft of HOA funds — by an officer, a manager, a vendor, or anyone with access to association money. Embezzlement by a treasurer, fraudulent transfers by a property manager, forged checks, vendor over-billing schemes — these are crime-policy claims. Most management contracts and many state laws require minimum crime coverage tied to the highest reserve balance the association holds at any point in the year. Reserve-fund handling is a core TX board responsibility. Crime coverage tied to the highest reserve balance — not the average — is the right floor. Larger Houston, Dallas-Fort Worth, Austin, San Antonio, and The Woodlands master-planned communities running multi-year capital budgets face elevated peak-balance exposure.

Workers' Compensation

  • Subscriber/non-subscriber posture verified for staffed associations
  • Vendor-COI requirements verified to limit tendered-defendant exposure
  • Federal OSHA private-sector posture considered for staffed associations

Workers' comp covers direct association employees if the HOA employs any — a property manager, a maintenance staffer, a clubhouse attendant. Most HOAs work entirely through contracted vendors and don't employ workers directly, but communities with on-site staff have to carry WC just like any employer. The bigger exposure for most associations is when a contracted worker is injured on common-area property and the association becomes a tendered defendant. Texas allows most private employers to opt out of WC. For HOA associations with on-site staff, Texas Mutual is the largest carrier for subscribers. Non-subscribers lose common-law defenses on tort claims by injured workers — contributory negligence, fellow-servant, assumption of risk. Most TX HOAs work entirely through contracted vendors. Vendor-COI verification matters more than direct WC for most communities.

RECOMMENDED

Umbrella / Excess Liability

  • Excess limits sized against actual amenity-and-severity profile
  • Drop-down language read for primary-aggregate-exhaustion scenarios
  • Schedule of underlying policies verified at every renewal

Umbrella or excess liability sits over the primary CGL, D&O, and any auto coverage and responds when a single claim exceeds the primary limits. On a community with shared amenities — pools, fitness rooms, common-area structures, parking — the severity exposure on a single bodily-injury or D&O event can outrun a $1M primary fast. The umbrella is what answers when it does. TX's combination of large master-planned communities (The Woodlands, Sienna, Cinco Ranch), Gulf-coast hurricane exposure, TFHA-driven D&O claim activity, and dense Houston / DFW / Austin / San Antonio metro condominium severity drives primary-limit exhaustion faster than lighter-amenity communities. Umbrellas under $5M on TX master-planned associations are systemically under-sized.

Get Board-Ready Coverage →

Takes ~2 minutes · We review your governing docs · Coverage matched to your requirements

Your Texas HOA Reality

Landscape, Laws, Realities & Cost Drivers

Four angles on what shapes HOA underwriting and board exposure for Texas associations.

The HOA Insurance Landscape in Texas

Texas has about 23,500 community associations — third-most in the country, according to CAI's 2025 Statistical Review — with significant density in Houston (Galleria, The Woodlands, Sugar Land, Cinco Ranch), Dallas-Fort Worth (Frisco, Plano, Allen, Southlake), Austin (Westlake, Steiner Ranch, Lakeway), San Antonio (Stone Oak, Alamo Heights), and the broader Austin-San Antonio corridor. Construction stock spans 1980s-2000s suburban master-planned communities, 2010s+ urban-density mid-rise condominiums, and current Gulf-coast hurricane-resilient construction.

The Texas HOA buyer market is sophisticated. Professional Community Association Managers credentialed through CACM and CAI are concentrated in Houston, DFW, and Austin metros; many CAMs run portfolios of 30-80+ associations. Board attorneys specializing in Texas Property Code representation are concentrated in major metros. Master-planned community boards — The Woodlands, Sienna, Cinco Ranch, Steiner Ranch — operate with professional infrastructure including full-time management and executive directors.

Association type distribution skews toward single-family master-planned communities in suburban metros, with significant condominium presence in urban-corridor mixed-use developments and resort-coastal markets. Sub-association structures are common in master-planned communities. Hurricane and Gulf-coast severe-weather exposures shape every Texas Gulf-affected HOA's master policy economics. Hard-market property pricing has pushed some carriers to non-renew coastal-county condominium business or tighten windstorm endorsement availability since 2022.

The Texas HOA buyer market rewards consultative depth, particularly post-2023. The legislative reform stack — Chapter 209's fining rules, including HB 614's fine-schedule requirement, plus separate protected-installation statutes on solar, flag displays, religious displays (SB 581), and political signs — added procedural and substantive duties that materially reshaped board-level exposure. Boards expect their broker to read governing documents and reform-era procedural changes, not just bind policy. The CAM expects coverage coordination with the rest of the management program.

Dallas-Fort Worth Metroplex
Houston & Gulf Coast Corridor
Austin & Central Texas
San Antonio Metro
Plano, Frisco & North Texas Suburbs
The Woodlands & Montgomery County
Katy & Fort Bend County
Corpus Christi & Coastal Bend
Every Texas Region

Every Texas Region

We look at four things regardless of region: master policy form, reserve study posture, D&O wrongful-acts definition scope, and fidelity bond peak-balance sizing. Geography picks your perils. These four shape how your policy actually responds.

Premium Drivers

What Drives Your HOA Insurance Premium in Texas

HOA insurance pricing depends on dozens of factors specific to your community. Here's what drives premiums up or down — and why generic estimates almost always miss the mark.

Rating FactorImpact on Premium
Number of units / association size
CriticalBiggest volume driver
Building construction type (wood-frame vs masonry)
SignificantWood-frame generally prices higher than masonry or concrete
Age of buildings
NotableOlder roofs, plumbing and wiring price higher
Claims history (last 5 years)
CriticalRecent claims follow you into every renewal
Amenities (pool, gym, elevators)
NotableEach adds to master policy premium based on risk exposure
D&O limits selected
CriticalHigher limits and broader wording cost more
Reserve adequacy
NotableFunded reserves read as lower risk to underwriters
Fidelity bond sized to reserves
NotableScales with reserves
Location (wildfire, hurricane, hail zones)
SignificantHigher-risk zones carry higher rates and deductibles
Ordinance & Law coverage
MinorAdds premium; closes the code-upgrade gap after a loss
Property manager risk profile
NotableCredentials and complaint history factor in
Governing documents requirements
CriticalDetermines minimum limits

A complete HOA insurance program typically includes these policies:

CoveragePurposeTypical Limits
Master Property PolicyBuildings, common areas, structural systems100% replacement cost
Directors & Officers (D&O)Board member personal liability$1M–$5M based on size
General LiabilitySlip-and-fall, injuries on common areas$1M per occurrence / $2M aggregate
Fidelity BondTheft, embezzlement by employees/vendors3 months assessments + full reserves
Ordinance & LawBuilding code upgrade costs after loss10–25% of property limits
Umbrella / Excess LiabilityAdditional layer above base policies$2M–$10M based on size

Every association is different. Rather than guess at your premium from a generic table, get a real review from a licensed agent who understands HOA risk — we read your CC&Rs, your buildings, and your reserve schedule, then run real numbers against the carriers writing your community's profile.

Risk Calculator

Want to Know Your Texas HOA Risk Profile?

Our Risk Calculator surfaces the biggest gaps in 60 seconds — no email required.

HOA Risk Calculator

Check Your Texas HOA Risk in 60 Seconds

10 questions, ~6 seconds each. Surfaces D&O coverage gaps, master-policy form mismatches, fidelity bond shortfalls, and governing-document compliance exposure.

What it surfaces

D&O gaps

Board claim exposure

Master form

Bare-walls vs all-in mismatch

Fidelity bond

Governing-doc threshold

Governing docs

CC&Rs vs policy schedule

Sample question · 1 of 10~6 sec each

Does your board's D&O policy respond to covenant-enforcement and selective-enforcement claims, or does it carry a third-party discrimination exclusion that quietly carves them out?

Yes, recently confirmed without exclusions
Think so, never verified
No / not sure

Live calculator scores your answers and flags coverage gaps at the end — no email required.

Did you know? Third-party discrimination exclusions are still showing up on standard HOA D&O forms — and covenant-enforcement claims are the most common type of D&O claim filed against community association boards.

Check Your Risk →
FreeNo email required60 seconds10 questions

Policy Mistakes We Find

8 Mistakes That Cost Texas HOA Boards Six Figures

These are the coverage gaps we see in nearly every HOA policy review. How many of them apply to your association?

1

🏗️ What Happens When a Contractor Gets Hurt Doing Work on the Common Areas?

Your landscaper, pool company, and maintenance vendors should all carry their own workers compensation and general liability. But if they don't — or if their policies have lapsed without your knowledge — the injured worker can come after the association. When was the last time your property manager actually verified current COIs from every vendor working on your property?

2

⚖️ Does Your Board Have D&O Coverage — And Do You Know What It Actually Protects?

What happens if a homeowner sues the board over a decision you made in a volunteer capacity? Without Directors & Officers coverage, that lawsuit comes out of your personal assets. How comfortable are you with that exposure — and has your current agent even mentioned this to you?

3

📄 When Was the Last Time Anyone Read Your Governing Documents Against Your Policy?

Your CC&Rs have specific insurance requirements — master policy type, coverage limits, fidelity bond amounts. Does your current policy actually meet those requirements? Most HOA policies don't, and most boards don't find out until there's a claim or a lawsuit.

4

🏊 Do You Know What Your Master Policy Actually Covers?

Bare walls-in or all-in? Original construction or improvements and betterments? Most HOA boards can't answer this question — and homeowners with water damage in their units find out the wrong answer when the claim is denied. When was the last time your agent explained this to your board in plain English?

5

💰 What Happens If Your Property Manager or Treasurer Steals From the Association?

Fidelity bond coverage protects the association from employee theft, embezzlement, and fraud. Most HOAs have this coverage, but at limits that don't match their actual reserves. Is your fidelity bond limit equal to the maximum amount in your accounts at any given time?

6

🏗️ Will Your Policy Actually Rebuild Your Buildings to Code?

Building codes change. Your 30-year-old condos probably don't meet current code for fire suppression, ADA access, or seismic retrofitting. Does your policy include Ordinance & Law coverage to pay the upgrade costs after a loss — or will your reserves have to cover the difference?

7

🌊 If a Pipe Bursts in an Empty Unit, Who Pays?

Water damage is the #1 HOA claim type. If a pipe bursts in a vacant unit or owner-absent unit, is it the association's problem or the unit owner's? The answer depends on your master policy type AND your governing documents. Most boards don't know how these two documents interact.

8

🛡️ When Was the Last Time Someone Presented Your Full Coverage to the Board on Video?

Insurance is one of the biggest line items in your association budget. Your board makes decisions about coverage every year — and most of them don't understand what they're actually voting on. Wouldn't it help if someone walked the whole board through your policy in plain English before the next renewal?

Before You Decide

Things You're Probably Wondering

We're mid-term on our master policy — do we have to wait for renewal?

Not always. If there's a meaningful gap (fidelity bond below governing documents, D&O with a discrimination exclusion, replacement-cost figure years out of date), it can be worth canceling mid-term and rewriting. We walk the board through the math on whether the unearned premium refund and new policy cost make sense. If renewal's only 90 days out, usually wait. If a homeowner refinancing just got blocked or a board member is exposed in an active claim, often worth moving now.

How fast can we have coverage in place?

Most board reviews wrap in 2–7 business days from first conversation to bound coverage. The faster end of that range happens when your quote submission is thorough — dec page, governing documents, recent budget, and the items in the checklist above ready upfront. The longer end is when we're chasing details one piece at a time. For lender-driven coverage updates (refinancing, FHA approval), we work to whatever timeline the lender requires. We schedule renewals 90 days before expiration so the board has time to review options without rushing.

What happens if a claim is filed against the association after we're bound?

You call the carrier's claim line first (it's on your dec page) and us second. The carrier handles defense counsel and adjuster assignment. We coordinate with the board on the claim narrative, walk you through what the policy covers, what's reimbursable, and what the carrier needs from your management company or attorney. The board doesn't navigate it alone.

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Our Process

Bobby Friel, Partner at Direct Insurance Services

Bobby Friel

Partner, Direct Insurance Services

How We Work With Your Board

Six steps from first conversation to bound coverage — the consultative review you saw on video earlier, mapped to your governing documents, your buildings, and the requirements your community is already obligated to carry.

1

Read your governing documents

CC&Rs, bylaws, and recorded amendments dictate the master-policy form, fidelity bond limit, and D&O coverage your association is required to carry. We start there, not with a generic quote form.

2

Pull current dec page + sub-limits

Existing limits, endorsements, sub-limits, and any warranty language already on the policy. We document what is in place against what your governing documents require.

3

Pull loss runs + prior claim history

Five years of loss runs, open D&O matters, and any prior claim narratives that shape carrier appetite and renewal pricing. We review them before any market goes out.

4

Map governing-document requirements against the policy schedule

Every requirement from the CC&Rs and bylaws gets marked against the policy schedule. Match, gap, or open question. The board sees the gap before any quote leaves our office.

5

Quote across multiple carriers and walk the board through every option on video

We run the submission across HOA-writing markets and walk the full board through each option on video — limits, exclusions, sub-limits, and how each carrier treats the items the governing documents demand.

6

Bind, issue evidence-of-insurance, and stay in the relationship

When the board votes to bind, the certificate goes to your management company, lender, and any homeowner who needs proof of coverage same-day. We renew with you 90 days out — not 14 days out under deadline pressure.

Multi-Market HOA Access

Appointed across HOA + condo association markets

We compare quotes across A-rated carriers writing community-association risk — not just the cheapest, but the right combination of master-policy form, D&O scope, and fidelity bond limits for what your governing documents actually require. We're appointed across HOA + condo markets the typical local broker can't quote against, including specialty programs for high-rise, mixed-use, and resort communities.

5-Star Rated on Google — Policies Serviced by Direct Insurance Services

“I run a snow plow removal business and my old insurance provider dropped my coverage!! They got everything sorted out and I was insured the same day. These guys know how to help, use them!!”

— Jessica K., Google Review

Future Pacing

What Happens After You Have The Right Coverage

Once your master policy actually matches your governing documents and lender requirements, board meetings stop including 'do we have insurance for that' as an agenda item. Homeowner refinancing doesn't get blocked because your fidelity bond is short. Board members aren't personally exposed in claims your D&O should cover. Property valuation reflects what it would actually cost to rebuild. And when a real claim hits — a slip and fall in common areas, a discrimination allegation, a property loss requiring code upgrades — you're not finding out at the worst moment that an exclusion you'd never been told about is in the policy.

  • Fidelity bond meets governing documents and FHA / Fannie / Freddie thresholds
  • D&O covers the claim types boards actually face
  • Property valuation reflects current replacement cost
  • Renewal review presented to the full board on video before binding
Get an HOA Policy Review →

Local Risk Intelligence

Critical Coverage Gaps by Texas Metro

Risks vary across Houston, Dallas, and Austin. Switch tabs for the specific exposures we map for each metro — and the coverage gaps that catch boards off guard.

Texas Metro

Houston: Critical HOA Coverage Gaps

1

Post-Harvey hurricane-flood coverage adequacy

Houston's post-Harvey attention has produced board-level scrutiny on master flood and windstorm policy adequacy across condominium and master-planned communities. Master flood policies inherited from prior boards are typically below replacement-cost reality on common-area amenities and shared building infrastructure.

Example scenarioA Houston Galleria mid-rise condominium experienced hurricane-driven water intrusion across multiple floors; the master flood policy was below replacement cost, and the D&O endorsement responded to owner allegations of inadequate coverage and deferred mitigation.

What you needMaster flood policy review against actual replacement-cost reality, excess flood layer placement, named-storm endorsement language, and D&O wrongful-acts definition reaching coverage-adequacy claims.

2

Master-planned amenity stack severity (The Woodlands, Sienna, Cinco Ranch)

Houston-metro master-planned communities run dense amenity stacks: community-wide pools, golf-adjacent infrastructure, walking trails, fitness centers, sub-association structures with their own amenity profiles. Primary CGL aggregates exhaust faster than in lighter-amenity markets.

Example scenarioA Woodlands master-planned community faced multiple coordinated owner claims and a third-party severity event; the master policy CGL aggregate exhausted, and the umbrella drop-down language carried the loss.

What you needUmbrella sized against actual amenity profile ($10M-$25M practical floor) with drop-down language verified for primary aggregate exhaustion scenarios.

3

Chapter 209 foreclosure-procedure exposure

Property Code Chapter 209 sets strict rules on when and how a property owners' association can foreclose on an assessment lien (209.009–209.011); condominiums follow 82.113. Boards that cut corners face D&O claims. Houston-metro associations using outdated foreclosure procedures face D&O exposure on every foreclosure-procedure claim.

Example scenarioA Houston-metro master-planned community faced multiple owner counter-claims on foreclosure-priority lien proceedings; the D&O endorsement responded to procedural-defect counts.

What you needForeclosure procedure compliance with Chapter 209 (209.009–209.011) plus D&O wrongful-acts definition reaching foreclosure-procedure claims.

We also serve associations in:

San Antonio, TXFort Worth, TXPlano, TXFrisco, TXMcKinney, TX

Texas Coverage Gap Analysis

See where your current policy leaves your board exposed

We review your governing documents, your master-policy form, and your D&O endorsement against the risks specific to where your association actually sits in Texas.

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Carrier Partners

Carriers We Work With

We compare quotes from multiple A-rated carriers writing HOA + condo association risk to find Texas associations the right combination of master-policy form, D&O scope, and fidelity bond limits.

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Liberty Mutual HOA insurance carrier logo
Nationwide HOA insurance carrier logo
AIG HOA insurance carrier logo
Amwins HOA insurance carrier logo
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Chubb HOA insurance carrier logo
The Hartford HOA insurance carrier logo
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Nationwide HOA insurance carrier logo
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Plus additional specialty community-association markets we're appointed with for high-rise, mixed-use, resort, and master-planned communities.

🗺️ Multi-Market Reach

Texas HOA statutes and board governance shape carrier appetite — multi-market shopping matches your community to the right paper.

HOA carriers underwrite state-specific enabling statutes, state-specific D&O exposure, and state-specific community-size and building-age profiles differently. We shop your governing documents, your master policy structure, your D&O endorsement scope, and your fidelity bond requirements across multiple carriers — so your association's program matches Texas's framework and your community's actual risk profile.

The Complete HOA Insurance Guide

Insurance Service 365

Want to Go Deeper?

Read The Complete HOA Insurance Guide

A comprehensive 5,000-word guide covering master policy forms, D&O coverage scope, fidelity bond sizing, example scenarios, and the 8 mistakes we find on most HOA board reviews. Free, no email required.

  • Master policy form deep-dive — bare-walls vs. all-in vs. modified, how the declaration controls form, and where the master/HO-6 seam surfaces during water-damage claims
  • D&O wrongful-acts definition scope — broad-form vs. narrow-form, discrimination-defense extension for FEHA accommodation claims, and inquiry-cost coverage for state-agency administrative hearings
  • Fidelity bond sizing — peak-balance vs. average-balance handling, governing-document and lender thresholds, capital-project funding-cycle exposure
  • The 8 most common gaps — D&O missing, fidelity bond undersized, replacement cost outdated, ordinance-and-law underspec'd, vendor COI lapses, master/HO-6 seam mismatches, board-decision wrongful-act exposure, claim-coordination failures
Read the Full Guide →

~5,000 words · 15 min read · Free

Frequently Asked

Texas HOA Insurance FAQs

The Texas Uniform Condominium Act (Property Code Chapter 82) requires condominium associations to maintain property insurance on common elements. For property owners associations (non-condo HOAs), there is no blanket state mandate, but most governing documents (CC&Rs) require the association to maintain property, liability, D&O, and fidelity bond coverage. Lenders also frequently require proof of adequate HOA insurance as a condition of mortgage approval.

There's no single number. A Texas association's cost is driven by the building, not a rate sheet: construction type and age, replacement cost, hail exposure in Dallas-Fort Worth, hurricane exposure along the Gulf Coast, loss history, the number of units, and the limits and deductibles the board chooses. Large master-planned communities with extensive amenities price very differently from small associations. The real number comes from reviewing your documents and quoting across carriers.

Many Texas HOA property policies include a separate named storm (hurricane) deductible, expressed as a percentage of total insured value, often 1–3% and sometimes higher. This deductible applies to damage caused by named tropical storms and hurricanes. A 3% named storm deductible means the association is responsible for hurricane damage up to 3% of the property's total insured value before the policy pays. Gulf Coast associations should maintain reserves to cover this deductible and communicate the structure to homeowners.

Many Texas HOAs should carry flood insurance, especially those in or near flood-prone areas. Standard property policies exclude flood damage. Hurricane Harvey demonstrated that catastrophic flooding can occur far from the coast and outside designated flood zones. Flood insurance is available through the National Flood Insurance Program (NFIP) or private flood markets. Associations in FEMA-designated flood zones may be required to carry flood coverage by lenders.

Yes. Texas board members can be held personally liable for decisions that breach their board duties. Common claims include failure to maintain adequate insurance, mismanagement of assessments, selective rule enforcement, and failure to follow the procedural requirements of the Texas Property Code. D&O insurance is essential for every Texas board member to cover legal defense costs and potential settlements.

The Texas Residential Property Owners Protection Act (Property Code Chapter 209) governs property owners associations (non-condo HOAs) in Texas. It establishes requirements for board governance, assessment collection, enforcement procedures, and homeowner rights. The act requires associations to provide specific notice before enforcement actions, limits foreclosure power, and gives homeowners the right to access association records. Boards that fail to follow Chapter 209 procedures face D&O claims.

Hail claims are one of the main reasons Texas HOAs face non-renewals and premium increases. After a large hail loss, carriers may impose higher, percentage-based hail deductibles, raise premiums, or non-renew the policy entirely. Associations with multiple hail claims in a 3-5 year period may need to seek coverage through specialty or surplus lines markets. Installing impact-resistant roofing materials can help mitigate premium increases and improve long-term insurability.

Regulatory Snapshot

Texas HOA Insurance Requirements

Key insurance and regulatory requirements that Texas HOA boards should know.

1

Texas Property Code provisions for residential property owners' associations and the Uniform Condominium Act govern Texas HOA governance and member rights. For condominiums, Property Code 82.111 requires property and liability coverage, to the extent reasonably available. For other property owners' associations, the declaration controls. Fidelity and D&O requirements come from your governing documents, lenders and good practice — not a Texas statute.

2

Texas law requires notice, a chance to cure, and a hearing before most HOA fines (Property Code 209.006–209.007). Since January 1, 2024, HB 614 also requires boards to adopt and publish an enforcement policy with a fine schedule (Property Code 209.0061).

3

Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Pre-reform architectural guidelines face misenforcement exposure under each of these separate statutes.

4

Property Code Chapter 209 sets strict rules on when and how a property owners' association can foreclose on an assessment lien (209.009–209.011); condominiums follow 82.113. Boards that cut corners face D&O claims.

5

Texas Fair Housing Act parallels federal FHA and provides additional state remedies; Texas and federal fair housing law offer parallel remedies.

6

Texas protects nonprofit directors who act in good faith and with ordinary care (Business Organizations Code 22.221), but that protection isn't tied to D&O limits and doesn't pay for a defense. D&O does.

Regulatory Deep Dive

Texas HOA Insurance Regulations

How Texas regulators shape HOA coverage — and the modern exposures generic policies miss.

Regulatory Environment

Insurance Regulatory Environment

Texas's insurance statutory framework for HOAs runs through Texas Property Code provisions and the Uniform Condominium Act at multiple touchpoints. For condominiums, Property Code 82.111 requires property and liability coverage, to the extent reasonably available. For other property owners' associations, the declaration controls. Fidelity and D&O requirements come from your governing documents, lenders and good practice — not a Texas statute. Each requirement interacts with the declaration's insurance section — the declaration controls common-element vs. unit-improvement allocation and whether the master policy is "all-in," "bare-walls," or "modified."

Texas doesn't set a reserve-study schedule, but carriers still read the funding plan and deferred repairs before they quote. Boards still own the funding decisions. Board minutes documenting deferral of funding decisions create evidentiary records that become central in subsequent owner suits. The fidelity bond sizing standard tied to peak reserve balance — not the average — is the right floor for Texas associations carrying elevated reserves during capital-project funding cycles.

Chapter 209's fining rules, including HB 614's fine-schedule requirement, govern every fining action. Boards using outdated fining procedures face wrongful-act exposure on every defective fining action. The wrongful-acts definition in the D&O endorsement controls how the policy responds to enforcement decisions, fining-procedure defects, architectural-review denials touching protected categories, and foreclosure-priority lien procedures.

Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Boards enforcing pre-reform architectural guidelines face misenforcement exposure on every related fining action under these separate statutes. The discrimination-defense extension on the D&O endorsement — combined with broad-form wrongful-acts definition — is the structural answer.

Property Code Chapter 209 sets strict rules on when and how a property owners' association can foreclose on an assessment lien (209.009–209.011); condominiums follow 82.113. Boards that cut corners face D&O claims.

Texas Fair Housing Act parallels federal FHA and provides additional state remedies. The Texas Workforce Commission Civil Rights Division enforces in parallel with HUD; Texas and federal fair housing law offer parallel remedies. Boards denying reasonable-accommodation requests face dual-track exposure that the discrimination-defense extension on the D&O endorsement is the only coverage to respond to.

Texas Insurance Code provisions on windstorm coverage interact with HOA master policies in coastal counties. TWIA-equivalent windstorm coverage availability, named-storm endorsement language, and excess flood layer placement all shape what carriers will quote in coastal counties — a market that tightened materially since Hurricane Harvey.

Texas workers' comp rates are built on NCCI-filed loss costs and each carrier's own multiplier, and Texas Mutual is the largest carrier, with roughly 40% of the market; Texas operates as the only state where WC is opt-in for private employers, but most HOAs subscribe given the tort exposure on non-subscriber posture.

Modern Exposures

Modern Coverage Needs in Texas

The modern coverage requirements for Texas HOAs have shifted materially since 2021. The post-2021 reform stack — protected-installation restrictions across separate statutes (Property Code Chapter 202 and Election Code 259.002), plus Chapter 209's fining rules, including HB 614's fine-schedule requirement — created multiple new wrongful-act windows on every enforcement and fining decision. D&O endorsements with broad-form wrongful-acts definitions reaching enforcement-decision claims matter materially more than they did three years ago.

Hurricane and Gulf-coast severe-weather coverage has tightened across Texas's hard-market property cycle. Carriers have non-renewed entire books of coastal-county condominium business; remaining capacity prices higher with stricter deductibles and coinsurance. Master flood policy adequacy against actual replacement-cost reality on common elements has become a renewal underwriting condition since Hurricane Harvey, and post-Beryl attention has reinforced board-level scrutiny on flood-coverage adequacy.

Foreclosure-priority lien procedure compliance has emerged as a central D&O exposure area. Property Code Chapter 209 sets strict rules on when and how a property owners' association can foreclose on an assessment lien (209.009–209.011); condominiums follow 82.113. Boards that cut corners face D&O claims. Broad-form wrongful-acts definitions matter materially.

Texas Fair Housing Act exposure has grown with the Texas Workforce Commission Civil Rights Division's parallel enforcement infrastructure. Texas and federal fair housing law offer parallel remedies. Boards denying reasonable-accommodation requests face dual-track exposure; the discrimination-defense extension on the D&O endorsement is the only coverage to respond to. Architectural-review committees handling FHA/TFHA-protected accommodation requests need current ARC training and documented reasonable-accommodation policies.

Master/HO-6 coordination remains the central claim-time issue on Texas condominium water-damage claims. The seam between master policy property coverage and unit-owner HO-6 contents and improvements coverage controls what actually responds. Form-type clarity in the declaration combined with a master policy that matches declaration requirements — and unit-owner HO-6 policies aligned with the master form — is the only structural answer. Texas freeze events (2021 forward) and hurricane-driven water intrusion both make this seam a routine underwriting question.

Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Each restriction requires updated architectural guidelines on every enforcing community. Boards maintaining pre-reform guidelines face misenforcement exposure on each; the discrimination-defense extension on the D&O endorsement is the structural answer.

Cyber coverage is increasingly relevant for Texas HOAs handling owner data, payment processing, and reserve-fund handling. Cyber endorsements on D&O programs vary in scope and limit; standalone cyber programs are appropriate for larger master-planned communities. The Woodlands, Sienna, Steiner Ranch, and similar large master-planned communities with high-net-worth owner demographics face elevated cyber exposure profile.

Reserve-funding posture documentation has become a core renewal underwriting condition. Carriers increasingly condition renewal on documented funding plans for identified deficiencies. Boards with current studies and documented funding plans access different program options than boards carrying multi-year deferrals.

Board Governance

Board Governance & Liability in Texas

Understanding your governance obligations as a Texas HOA board member is essential to protecting yourself and your community.

Texas HOA board members owe board duties to the association and its members under both the Texas Property Code and the Texas Business Organizations Code (most HOAs are organized as nonprofit corporations). Board members must act in good faith, exercise ordinary care, and act in a manner they reasonably believe to be in the best interest of the association. Texas courts apply the business judgment rule to protect board members who make informed, good-faith decisions. However, Texas has seen an increase in homeowner lawsuits challenging board governance decisions, particularly around assessment increases, rule enforcement, and maintenance standards. The Texas Residential Property Owners Protection Act (Chapter 209) imposes specific procedural requirements that boards must follow for enforcement actions, including notice requirements and opportunity to cure. Boards that bypass these procedures face D&O claims. Texas law also requires boards to follow specific procedures for adopting and amending rules, collecting assessments, and pursuing foreclosure. The state's strong private property rights culture means homeowners are increasingly willing to challenge board authority, making D&O insurance an essential protection for every Texas HOA board member.

Cost Drivers

What Affects HOA Insurance Costs in Texas?

Insurance costs for Texas associations depend on several key factors. Understanding these helps your board make informed decisions about coverage and budgeting.

1

Texas Property Code framework (residential POA + Texas Uniform Condominium Act)

Texas Property Code provisions for residential property owners' associations are among the country's more detailed common-interest frameworks. Chapter 209's fining rules, including HB 614's fine-schedule requirement, add further procedural requirements. The applicable framework drives both insurance requirements and board duty.

2

Texas Fair Housing Act reasonable-accommodation exposure

Texas Fair Housing Act parallels federal FHA. The Texas Workforce Commission Civil Rights Division enforces in parallel with HUD. Texas and federal fair housing law offer parallel remedies. Boards denying accommodation requests face dual-track exposure that the discrimination-defense extension on D&O is the only piece to respond to.

3

WC opt-in framework for staffed associations (subscriber/non-subscriber decision)

Texas allows most private employers to opt out of WC. Non-subscriber HOAs lose common-law defenses on tort claims by injured workers — contributory negligence, fellow-servant, assumption of risk. The subscriber-vs-non-subscriber decision is a structural call for any TX HOA with direct staff.

4

Hurricane and Gulf-coast severe-weather exposure

Hurricane Harvey, Hurricane Beryl, and the broader Gulf-coast severe-weather pattern have produced documented coverage-adequacy disputes for Houston, Galveston, Corpus Christi, and broader coastal-county master-planned communities. Master flood and windstorm policies inherited from prior boards are typically below replacement cost.

5

State-specific protections (solar, flag, religious displays, political signs)

Texas limits what an HOA can prohibit on solar devices, flags and religious displays (Property Code Chapter 202 — religious-display protection was expanded by SB 581 in 2021) and on political signs (Election Code 259.002). Boards enforcing architectural guidelines without checking the state-protection layer face wrongful-act exposure that bundles with selective-enforcement counts.

6

Loss history including hurricane and procedural claims

Open hurricane-event property claims, prior procedural-fining D&O matters, and Texas Mutual mod history (where subscribed) all carry into renewal pricing across multiple rating cycles.

Local

Cities We Serve in Texas

We write HOA insurance for associations across Texas, including these major metro areas.

Houston, TXDallas, TXSan Antonio, TXAustin, TXFort Worth, TXPlano, TXFrisco, TXMcKinney, TX

Nearby

HOA Insurance in Nearby States

Explore HOA coverage in nearby states where we're licensed.

TexasColoradoArizonaTennesseeGeorgiaMissouri

National Footprint

HOA Insurance in All 29 States

We write HOA insurance across 29 states. Select a state to learn about local statutes, costs, and coverage options.

ArizonaCaliforniaColoradoDelawareGeorgiaIdahoIllinoisIowaMarylandMichiganMinnesotaMissouriMontanaNevadaNew JerseyNorth CarolinaOhioOklahomaOregonPennsylvaniaSouth CarolinaSouth DakotaTennesseeTexasUtahVirginiaWashingtonWisconsinWyoming

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Property and liability coverage for commercial landlords.

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Ready When You Are

We compare carriers, review your governing documents, and walk your board through every option for Texas HOA coverage.

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