Condo Master Policy vs HO-6: What Your HOA Covers (and What It Doesn’t)
Your HO-6 policy covers the rest, including your belongings, personal liability, interior finishes, and more. The problem most condo owners face is not knowing exactly where one ends and the other begins. This guide explains both policies, identifies the most common gaps, and tells you how to fill them.
Quick answer: master policy vs HO-6 (in plain English):
Your HOA’s master policy is like a building-level insurance policy that everyone in the association funds through dues. It typically covers the building structure, the exterior, hallways, elevators, lobbies, and shared amenities. Your HO-6 is a unit-level policy you buy yourself. It typically covers your personal belongings, personal liability, temporary living expenses after a covered loss, and the parts of your unit the master policy leaves uncovered. Both policies operate at the same time, but they cover different things.
What does a condo/HOA master policy typically cover?
The HOA master policy is designed to insure the parts of the property that belong to everyone, including the building and shared spaces. While specifics vary by policy, here is what a master policy typically covers.
Building structure and common areas
This typically includes the exterior walls, roof, foundation, structural framing, lobby, hallways, stairwells, elevators, parking areas, and shared amenities such as pools and fitness centers. The master policy is meant to rebuild or repair these elements after a covered loss.
What a master policy usually doesn’t cover inside your unit
Regardless of the master policy type, the following are almost always left to the unit owner: personal belongings, personal liability, additional living expenses after a covered loss, and any upgrades or improvements you have made beyond original condition. These are what your HO-6 covers.
The walls-in question: 3 common master policy types
The biggest variable in condo insurance planning is the type of master policy your HOA carries. The three main forms differ significantly in how much of your unit’s interior they cover. Understanding your building’s type is the most important step before you set your HO-6 Coverage A limit.
Bare walls (studs-out): What the HOA covers and what you cover
Under a bare walls policy, the HOA covers only the building shell, including the exterior, structure, and shared areas up to the bare drywall or studs. Everything inside the unit boundary falls to you: interior walls, flooring, cabinets, built-in appliances, fixtures, and any improvements. If you live in a building with a bare walls master policy, you need the most comprehensive Coverage A on your HO-6.
Single entity (walls-in): What the HOA covers and what you cover
Under a single entity policy, the HOA covers the building plus the original fixtures and finishes inside the unit, as originally installed. If you have a standard kitchen with original cabinets and appliances, those may be covered. However, any upgrades you have made, including granite counters, new flooring, and custom fixtures, are typically not covered by the master policy and fall to your HO-6. This means you still need meaningful Coverage A for your improvements and betterments.
All-in: What the HOA covers and what you cover
Under an all-in policy, the HOA covers the building, original fixtures, and even upgrades you have made inside the unit. This is the broadest master policy type and offers the most interior coverage. Even so, you still need HO-6 for personal belongings, personal liability, and additional living expenses. None of these are covered by the master policy regardless of type.
How to confirm your building’s master policy type
Ask your HOA board or property manager for four documents: (1) the master policy declarations page (shows coverage type, limits, and deductible), (2) the CC&Rs and bylaws (define unit boundaries and what unit owners are responsible for), (3) any insurance requirements the HOA places on unit owners, and (4) recent assessment history (if available).
The most common coverage gaps condo owners face
Most condo insurance problems come from a handful of predictable gaps. Here are the ones that catch condo owners off guard most often.
Interior finishes and upgrades
Many condo owners assume their association’s policy covers the interior since the HOA handles the building overall. Under a bare walls policy, even your drywall, flooring, and cabinets are your responsibility. If you remodeled and your HOA has a single entity policy, your upgrades are still typically your responsibility. Underestimating your dwelling coverage need leaves you personally exposed for significant repair costs after a loss.
Personal property
The master policy does not cover your belongings under any policy type. Your furniture, electronics, clothing, appliances, and valuables are always covered by your HO-6, not the master policy. If you underestimate how much your belongings are worth or choose actual cash value coverage instead of replacement cost, you may receive a disappointing payout after a fire or theft. If you want a refresher, see actual cash value vs replacement cost.
Loss assessments and deductibles
When a covered loss to shared property exceeds the master policy’s limits, or when the master policy has a large deductible (particularly a percentage wind or hail deductible), the HOA may levy a special assessment against unit owners. Without loss assessment coverage on your HO-6, you pay that assessment entirely out of pocket. For more background, see condo insurance.
Real-life scenarios: how the gap plays out
Scenario 1: Water damage from your unit. Your dishwasher supply line fails while you are at work, flooding your kitchen and the unit below. Your HO-6 may cover the damage to your interior (subject to your coverage and deductible). Your personal liability may help if you are found responsible for the neighbor’s damage. The master policy may handle structural elements, depending on the policy type.
Scenario 2: Fire in another unit. A fire originating in a neighboring unit damages the hallway and parts of your unit. The master policy typically handles the building structure and common areas. What the master policy covers inside your unit depends on the policy type. Your HO-6 covers your belongings and the interior elements the master policy leaves to you.
Scenario 3: Special assessment after a major loss. A hurricane damages the building roof and common structures. The master policy deductible is 2% of the building’s insured value, which is a large figure. The HOA passes the deductible cost to unit owners as a special assessment. Without loss assessment coverage on your HO-6, you absorb that bill on your own.
Do I need HO-6 if my HOA has insurance?
Yes, in almost all cases. No master policy covers your personal belongings, your personal liability, your temporary living costs after a covered loss, or your interior finishes under a bare walls or single entity policy. If you do not carry HO-6 and your unit is burglarized, flooded from above, or damaged by fire, you have no coverage for your belongings or your liability. Your mortgage lender may also require it, and your HOA may as well. Even if neither requires it, the financial exposure without it is typically significant.
How to choose HO-6 coverage amounts (fast checklist)
Step 1: Get the master policy declarations page and identify the type (bare walls, single entity, or all-in) and the master policy deductible.
Step 2: Estimate your personal property using a room-by-room inventory.
Step 3: Match your Coverage A (dwelling) limit to what it would actually cost to rebuild your unit’s interior and improvements, based on the master policy type.
Step 4: Choose liability limits based on your assets and risk.
Step 5: Consider loss assessment coverage. Ask about the master policy deductible and the size of past or potential assessments.
Step 6: Compare quotes using these inputs to find the best combination of coverage and premium.
Condo master policy vs HO-6 FAQs
Does the HOA master policy cover my kitchen remodel?
Typically no, unless your HOA carries an all-in master policy. Under bare walls and single entity policies, your remodeled kitchen (new counters, custom cabinets, and upgraded appliances you installed) is not covered by the master policy. It falls to your HO-6 Coverage A (improvements and betterments).
What if my HOA has a huge deductible?
A large master policy deductible, especially a percentage-based wind or hail deductible common in coastal states, can result in a significant assessment to unit owners after a major event. Loss assessment coverage on your HO-6 may help cover your share, up to your selected limit. Review the master policy deductible amount before choosing your loss assessment limit.
What documents should I request from my HOA?
Request the master policy declarations page (shows type, limits, deductible, and carrier), the CC&Rs (defines unit boundaries), the bylaws (describes owner vs HOA responsibilities), and any insurance requirements the HOA places on unit owners. These documents give you the full picture.
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