Owning a condo comes with unique advantages—low-maintenance living, shared amenities, and often prime locations. But when it comes to protecting your investment, condo insurance can feel a little more complex than traditional homeowners coverage. That’s because both your association’s master policy and your own condo insurance (known as an HO-6 policy) work together to provide protection. Understanding the division of responsibility is essential to avoid costly surprises if damage occurs.
What Does the Master Policy Cover?
By law, condo associations are required to insure the building’s structure and shared areas. This usually includes:
- Roof and exterior walls
- Elevators and hallways
- Lobbies and shared facilities
- Structural components like wiring, plumbing, and insulation
The association’s policy also typically includes liability coverage for accidents in common spaces. What it won’t cover is the inside of your unit or your personal belongings. Where the line gets drawn depends on the type of master policy your association carries.
Two Main Types of Master Policies
- Bare Walls Coverage
This type of policy covers everything from the drywall outward. It excludes all interior finishes—paint, flooring, cabinetry, and fixtures—leaving you responsible for insuring everything inside. While it’s the least expensive option for associations, it shifts more responsibility onto individual condo owners. - All-In Coverage
This option is broader and may include some elements within each unit, such as flooring, built-in appliances, and even certain fixtures. Because it’s more comprehensive, it’s also more expensive, so not every association chooses it.
Since master policies vary, it’s always wise to review your association’s coverage details. That way, you’ll know exactly where their protection stops and where yours should begin.
What Does a Condo Owner’s Insurance Policy Cover?
Your personal policy, often called an HO-6, is designed to fill the gaps left by the master policy. It typically protects:
- Furniture, electronics, clothing, and valuables
- Kitchen appliances, cookware, and decor
- Flooring, wall coverings, and built-in features (if not already covered by the association)
- Personal liability for accidents in your unit
- Temporary living expenses if your condo becomes unlivable after a covered event
Coverage needs can differ depending on whether your association’s master policy is bare walls or all-in. For example, if your building only covers up to the drywall, you’ll need your own policy to include things like cabinets, countertops, and flooring.
Types of Coverage in an HO-6 Policy
- Dwelling Coverage (Coverage A): Protects the interior structure of your unit, including improvements you’ve made.
- Personal Property Coverage (Coverage C): Safeguards your belongings against risks such as theft, fire, or vandalism.
- Loss of Use (Coverage D): Pays for extra living costs if you can’t stay in your condo after a covered loss.
- Personal Liability (Coverage E): Provides protection if someone is injured in your unit or you damage another person’s property.
- Medical Payments (Coverage F): Helps cover minor medical bills for guests injured in your condo, regardless of fault.
Why This Matters
The overlap between the master policy and your own coverage can be confusing, but overlooking the details could leave you paying out of pocket for damages. By reviewing your association’s policy and tailoring your HO-6 to complement it, you’ll ensure your condo, your belongings, and your financial security are fully protected.
