Is Your Texas Condominium In Compliance With The Law? Mandatory Texas Insurance Requirements

Sep 11, 2018 By Marie Laur Condominium Associations

Condominium associations in Texas should look to the Texas Property Code §82.111 to ensure that they are in compliance with the condominium insurance requirements in the state.

The section states:

a. Beginning not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available:

1. Property insurance on the insurable common elements insuring against all risks of direct physical loss commonly insured against, including fire and extended coverage, in a total amount of at least 80 percent of the replacement cost or actual cash value of the insured property as of the effective date and at each renewal date of the policy; and

2. Commercial general liability insurance, including medical payment insurance, in an amount determined by the board but not less than any amount specified by the declaration covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.

b. If a building contains units having horizontal boundaries described in the declaration, the insurance maintained under Subsection (a)(1), to the extent reasonably available, must include the units, but need not include improvements and betterments installed by unit owners.

g. An insurance policy issued to the association does not prevent a unit owner from obtaining insurance for the owner’s own benefit.

While Texas requires associations to maintain insurance covering the units as well as the common areas, as noted in the section above, it is important for unit owners to notice that coverage for improvements and betterments is not required. Unit owners should consider purchasing additional insurance to cover any improvements and their personal property, since individual insurance is not prohibited by the Texas code.

Are you looking for help?

Let us help you. Call now: (877) 449-4700 | Monday – Friday, 9 AM – 5PM

Why choose Merlin Law Group?

Founded in 1985, our law firm continues to be dedicated to representing insurance policyholders throughout the United States. Collectively, our lawyers are licensed to practice in 25 states. In fact, many of Merlin Law Group’s attorneys worked for the insurance industry before joining the firm, so they bring a strong understanding of insurance company practices. Anyone can file a claim, but it takes experience, knowledge, and savvy to achieve a truly successful outcome. As The Policyholder’s Advocate®, Merlin Law Group aims to drive positive change within the insurance sector by obtaining justice for our clients and educating policyholders on how to navigate insurer bad faith tactics.

When we handle property insurance claim disputes, we hire the most experienced and qualified expert witnesses to evaluate your insurance claim and testify on your behalf. In most cases, we can advance the fees for this. Typically, we hire experts such as engineers, contractors, independent roofing consultants and other professionals to perform a thorough assessment on all possible causes of damages. This is a process that provides us with a very detailed and all-inclusive estimate for determining and justifying a proper settlement. Our use of these professional expert witnesses sets us apart from other insurance law firms.

Submit a free case review