How the HOA Master Policy Works
Why Are There Two Insurance Policies?
Condo ownership is different from owning a detached home because part of the property is typically owned or managed collectively through the condominium association.
Coverage for the Association
The master policy generally insures property and liability exposures belonging to the condominium association, subject to the policy form and governing documents.
Coverage for the Individual Unit Owner
Your individual condo policy may protect property and liability exposures that are not insured by the association’s master policy.
Master Policies Can Define Building Coverage Differently
Not every condominium association insures the building in exactly the same way. The master policy, declarations, bylaws, and other governing documents can help explain which property the association is responsible for insuring.
Common Areas and Structure
The association’s policy may cover shared areas such as hallways, roofs, exterior walls, elevators, pools, or other jointly owned property.
Original Fixtures May Differ
Some master policies may insure certain original fixtures or interior building components, while others may leave more responsibility to the individual unit owner.
Improvements and Betterments
Flooring, cabinets, countertops, upgraded fixtures, remodeling, or other improvements may need protection under your HO-6 policy depending on the association’s insurance structure.
What Should a Condo Owner Review?
Your individual condo policy should be reviewed alongside the association’s insurance so that you better understand which exposures may remain your responsibility.
Review how much protection may be appropriate for improvements, fixtures, flooring, cabinets, and other portions of the unit you may be responsible for.
The association generally does not insure your furniture, clothing, electronics, and other personal belongings simply because they are inside the condominium.
Your HO-6 policy may provide personal liability protection for certain covered claims involving injury or property damage for which you are legally responsible.
Depending on the policy, loss assessment coverage may help with certain eligible assessments charged to unit owners after a covered association loss.
Does Your HO-6 Policy Match Your HOA Coverage?
Best Formula Insurance can help you review condominium insurance options, building additions and alterations coverage, personal property, liability limits, loss assessment protection, and other available coverage.