Every HOA and condo association carries a master insurance policy — but a common and expensive misunderstanding is assuming that policy covers everything inside your own home too. It usually doesn't. Knowing exactly where the association's coverage stops and yours needs to start is one of the most financially important things a homeowner in an HOA can understand.
What the master policy typically covers
The association's master policy generally covers the building's shared structure and common areas: the roof, exterior walls, foundation, hallways, elevators, clubhouses, and liability for accidents in common areas. Exactly how far it extends into individual units depends on the type of policy and how the governing documents define it.
- "Bare walls" (or "walls-out") coverage — the master policy covers only the building's structure as originally built: studs, exterior walls, roof. Everything inside your unit — flooring, cabinets, fixtures, appliances, paint — is your responsibility to insure.
- "Walls-in" (or "all-in," "single entity") coverage — the master policy extends further, covering fixtures and improvements inside the unit as well, sometimes even original cabinetry and flooring. Fewer associations use this model, and it usually comes with higher dues to fund the broader coverage.
Your governing documents (specifically the CC&Rs or a separate insurance addendum) specify which model your association uses — this is worth confirming directly rather than assuming, since it changes how much personal coverage you need.
Why you still need your own policy
Regardless of which model your HOA uses, you need your own policy to cover:
- Personal property — furniture, electronics, clothing — never covered by the master policy.
- Interior improvements and betterments — upgrades you've made beyond what the master policy defines as original/standard.
- Loss of use — living expenses if your home becomes uninhabitable after a covered loss.
- Personal liability — if someone is injured inside your unit specifically (as opposed to a common area).
- The master policy's deductible — many associations pass their master policy deductible on to the unit owner where the loss originated, and these can run into the tens of thousands of dollars. A "loss assessment coverage" rider on your own policy can protect against this.
For condo owners, this personal policy is typically called an HO-6 policy. For single-family homes in an HOA, it's usually a standard homeowners policy, since you own the structure outright and the HOA's master policy covers only shared amenities and common areas, not your house itself.
What happens after a claim
When damage occurs — a pipe bursts, a fire starts — sorting out which policy pays for what can get complicated, especially when damage crosses from a common area into a unit, or from one unit into another. This is one of the most common sources of association disputes, and it's exactly why understanding your coverage gap before something happens matters far more than trying to sort it out afterward.
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