Hurricane season officially runs from June 1 through November 30 and if you own an apartment building, condo complex, or HOA community in the Houston area, now is the time to review your coverage. Not after a storm is named. Not when the forecast shows a cone over the Gulf.
At Ted W. Allen & Associates, we’ve been helping Houston-area property owners navigate insurance for over 57 years. Every season, we see the same pattern: owners who assumed they were covered discover too late that they weren’t. This guide is designed to help you avoid that situation.
The Coverage Gap That Catches Houston Owners Off Guard
The most common and costly misunderstanding in multifamily insurance comes down to four words: wind is not flood.
Your standard commercial property policy almost certainly covers wind and hail damage from a hurricane. What it does not cover is rising water storm surge, overflowing bayous, or rainwater that accumulates and enters your building from the ground up. For that, you need a separate flood insurance policy.
Houston’s unique geography makes this especially important. The city’s extensive bayou system creates flood risk well beyond what FEMA flood maps show. We’ve seen properties flood that had “never flooded before.” Harvey in 2017 was the clearest example properties miles from any mapped flood zone took on several feet of water.
If you don’t have a separate flood policy, you have a significant gap in your coverage.
What Your Commercial Property Policy Typically Covers
A standard multifamily property policy in Texas generally covers:
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Wind and hail damage — including roof damage, broken windows, and structural damage from high winds
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Fire damage following a storm event
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Loss of rental income — if your building becomes uninhabitable due to a covered event, this covers the rent you would have collected during repairs
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Liability — if a tenant or visitor is injured on your property during or after a storm
What it typically does not cover:
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Flood damage from storm surge or rising water
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Sewer backup (usually requires a separate endorsement)
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Ordinance or law coverage — the cost to bring your building up to current code during repairs (often overlooked and extremely important)
The Houston-Specific Rules You Need to Know
Houston’s position relative to the Gulf creates a split coverage landscape that catches many owners off guard.
East of Highway 146 (including parts of Pasadena, Seabrook, La Porte, and Morgan’s Point): Wind and hail coverage is often excluded from standard commercial policies in these areas. Property owners here typically need a separate windstorm policy through the Texas Windstorm Insurance Association (TWIA) or a private excess and surplus lines carrier.
West of Highway 146 (most of greater Houston, Cypress, The Woodlands, Katy, Sugar Land): Wind and hail are generally included in your standard policy — but flood remains a separate requirement.
TWIA note for 2026: Following the passage of HB 3689, TWIA voted for a 0% rate increase for 2026 welcome news for coastal property owners after several years of significant hikes.
Wind and Hail Deductibles: Read the Fine Print
Even when your policy covers wind damage, the deductible structure matters enormously for multifamily properties.
Many commercial policies now carry percentage-based wind deductibles rather than flat-dollar amounts typically 2% to 5% of the insured property value. On a $3 million apartment building, a 3% wind deductible means you’re responsible for the first $90,000 out of pocket before your coverage kicks in.
This surprises a lot of owners at claim time. Make sure you know:
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Whether your wind deductible is a flat dollar amount or a percentage
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What that percentage means in actual dollars for your property
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Whether your named storm deductible (which may be higher) is separate from your standard wind deductible
The 30-Day Flood Insurance Waiting Period
Here’s something every Houston property owner needs to know before storm season: most flood insurance policies have a 30-day waiting period before coverage takes effect.
If you don’t have flood coverage today and a storm is already forming in the Gulf, it’s too late. You cannot buy coverage and have it apply to an imminent storm.
This is one of the strongest reasons to review your coverage now in June rather than waiting until a storm is in the forecast.
Is Your Coverage Limit Still Accurate?
Replacement costs have changed dramatically over the past several years. Tariffs on building materials, labor shortages, and supply chain pressures have pushed construction costs significantly higher across Texas.
If you haven’t updated your property’s insured value recently, there’s a real chance you’re underinsured meaning your coverage limit would not be enough to fully rebuild after a total loss. This is known as coinsurance, and it can also reduce your payout on partial losses.
We recommend reviewing your replacement cost valuation annually, particularly heading into storm season.
A Quick Pre-Season Checklist for Houston Multifamily Owners
Before hurricane season is in full swing, run through these items:
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Flood policy in place — separate from your property policy, currently active
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Wind/hail deductible reviewed — you know the dollar amount, not just the percentage
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Loss of rental income coverage confirmed — and the limit reflects your actual rental income
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Replacement cost value updated — accounts for current construction costs
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Ordinance or law coverage in place — covers code upgrade costs during repairs
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Sewer backup endorsement — added if not already included
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TWIA compliance confirmed if your property is east of Highway 146
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Claims contact information accessible — you know who to call and how
Why an Independent Agent Makes a Difference at Claim Time
When a storm hits, the last thing you want to be doing is navigating coverage gaps on your own. At Ted W. Allen & Associates, we work with multiple carriers which means we can build a coverage structure that actually fits your property and your market, rather than fitting you into a one-size-fits-all policy.
Our master policy programs give multifamily owners access to broader coverage at competitive premiums. And when a claim happens, we advocate on your behalf not on behalf of a single carrier.
If you haven’t had a coverage review in the past 12 months, now is the right time.
Ready to Review Your Coverage Before Storm Season?
Contact Ted W. Allen & Associates for a complimentary multifamily coverage review.
Phone: 281-378-7475 Email: Website: tedwallen.com
Serving apartment owners, HOA boards, condo associations, and property managers across Houston, Cypress, The Woodlands, Katy, Sugar Land, and throughout Texas since 1967.
