HOA Master Insurance Policy Basics

TL;DR: A master insurance policy is carried by the association to cover common areas and (for condos) the building structure — it's separate from what you carry individually.

_Last reviewed: July 2026 · 3 min read_

If you're an HOA or condo owner trying to understand your insurance picture, the honest answer is: the master policy is carried by the association and covers common areas and, in condos, the building structure itself. It doesn't cover your personal property or (in most cases) your unit's interior — that's your responsibility through a separate personal policy.

Okoniq Property Hub stores your HOA's master policy declarations page so you know exactly where the coverage line falls.

What does a master policy typically cover?

For single-family HOAs:

• Common area structures (clubhouse, pool house, gates, shared fencing)
• General liability for injuries occurring in common areas
• Directors & Officers (D&O) coverage for board members — see HOA board member liability insurance

For condo/townhome associations:

• The building structure — roof, exterior walls, foundation
• Common area systems — elevators, shared HVAC, hallways, lobbies
• General liability for common areas
• D&O coverage for board members

What are the two types of condo master policies?

"Bare walls-in" (or "walls-in"):

• Master policy covers the building structure only, up to the interior drywall
• Owner's HO-6 policy covers everything from the drywall in — flooring, cabinets, fixtures, appliances

"All-in" (or "single entity"):

• Master policy covers the structure PLUS built-in fixtures as originally installed (cabinets, flooring, plumbing fixtures)
• Owner's HO-6 covers only upgrades beyond original builder-grade, personal property, and liability

Knowing which type your association carries changes how much HO-6 coverage you need — ask your board or management company directly, don't assume.

What isn't covered by the master policy?

• Your personal belongings (furniture, electronics, clothing)
• Improvements/upgrades you made beyond the original unit (if "bare walls-in")
• Loss of use / additional living expenses if you're displaced
• Personal liability for incidents inside your own unit

This gap is exactly what an HO-6 condo policy exists to fill.

What's the loss assessment coverage gap?

If a claim exceeds the master policy's limits or triggers a large deductible, the association can pass a special assessment to owners to cover the shortfall. Most HO-6 policies include "loss assessment coverage" — a rider that reimburses you for your share of such an assessment, up to a policy limit. Worth checking this specific coverage exists and is adequate.

How often should the master policy be reviewed?

At minimum annually, and any time the community adds a major amenity, completes a major renovation, or after a reserve study reveals updated replacement cost estimates. Underinsurance is a common finding when master policies aren't reviewed against current replacement costs.

Who pays for the master policy?

Association dues fund the master policy premium — it's a standard line item in the operating budget, distinct from reserve fund contributions.

Track your master policy and your own coverage

Okoniq Property Hub stores your HOA's master policy details alongside your own home insurance so you can spot gaps before a claim, not after. Related: HOA vs. condo association differences, HOA board member liability insurance, and the HOA & Community hub. General guidance at the Insurance Information Institute.

Frequently asked questions

Do I need an HO-6 policy if I live in a single-family HOA?

No — HO-6 is specific to condo/co-op ownership structures. Single-family HOA homeowners carry a standard homeowners policy covering the entire structure.

What happens if the master policy lapses?

Serious problem — it can violate mortgage lender requirements for every owner in the building and leaves the whole community exposed. Boards should treat lapse prevention as a top priority.

Can I get a copy of the master policy declarations page?

Yes — most associations are required to provide it to owners on request, and mortgage lenders often require it for condo loan approval.

This is general information, not insurance advice. Coverage specifics vary by policy and state — consult your insurance agent or the HOA's broker. Okoniq Property Hub keeps policies organized. Get started free.

FAQ

How much does an HOA master insurance policy typically cost per unit?

The cost varies widely based on the association's size, location, claims history, and amenities, but most communities see premiums ranging from $300 to $1,200 per unit annually, spread across monthly dues. High-rise condos in coastal or high-risk areas can run significantly higher.

What is the deductible on a condo master insurance policy?

Master policy deductibles for condos typically range from $5,000 to $25,000 per occurrence, though some coastal or high-rise buildings carry deductibles of $50,000 or more. If a claim originates in your unit, the association may bill you directly for the deductible portion.

Can the HOA board choose to cancel or change the master policy mid-year?

The board can change carriers or coverage terms, but doing so mid-policy-term often triggers early cancellation penalties and creates a coverage gap risk. Most associations review and shop policies 60 to 90 days before the annual renewal date to avoid disruption.

Does the master policy cover water damage inside my condo unit?

It depends on the source — if a common element like a roof or shared pipe fails, the master policy typically covers structural repairs, but your HO-6 covers your personal property and interior finishes. If the leak originates in your unit, your HO-6 is primary.