Condo Association Insurance: What It Covers, Who Needs It, and Why It Matters
Protect your condo community the right way. Whether you’re on the board, a property manager, or a condo owner trying to figure out where your responsibilities end, understanding condo association insurance is important.
At The Huneycutt Group, we help you make sense of it all—and find the right policy to protect what matters. Get in touch today for expert, tailored insurance advice.
Key Takeaways:
- Condo association insurance (master policy) covers shared areas, the building structure, and liability—but not the inside of individual units.
- Who needs to know about this coverage: Condo board members, HOA leaders, property managers, condo owners, buyers, real estate agents, and insurance professionals.
- Condo owners still need HO-6 insurance to cover personal belongings, interior upgrades, and liability inside their units.
What Is A Condo Association Master Insurance Policy?
Condo association insurance coverage—also known as a master policy or HOA insurance—covers the shared parts of a condominium building or complex. It’s a policy purchased by the condo association or homeowners’ association (HOA), not individual unit owners.
This type of insurance protects the building structure, common areas, and liability related to the association’s operations. It’s essential for maintaining the community’s financial health in the event of property damage, accidents, or lawsuits.
How It Differs from Individual Condo Insurance (HO-6)
A lot of confusion arises around who’s responsible for what. Here’s the split:
- Condo association master insurance policy covers shared spaces and the building itself.
- HO-6 policies, which are purchased by individual condo owners, cover what’s inside the unit—walls in, personal belongings, and personal liability.
Think of the master policy as protecting the “outside shell” and shared elements of the property, while the unit owner’s policy covers the interior and personal items.
What Does A Condo Association Insurance Policy Cover?
Condo association insurance coverage can vary depending on your state, lender requirements, and the association’s bylaws, but most master policies include:
Liability Protection
If someone is injured in a shared space (like slipping in the lobby), this coverage helps pay for medical costs and legal fees.
Building Damage
This includes physical damage to the exterior of the building and sometimes parts of the interior—depending on whether your policy is bare walls, single entity, or all-in.
- Bare Walls: With a “bare walls” policy, the condo association insures only the basic structure of the building, shared areas, and any common personal property owned by the association. Individual unit owners are responsible for insuring everything inside their own units—including items like sinks, built-in cabinets, appliances, flooring, wallpaper, and any upgrades—through a personal condo (HO-6) policy.
- Single Entity: Single entity coverage insures both shared property and the original features inside individual condo units, such as appliances and fixtures that came with the unit when it was built. It does not cover personal belongings or any upgrades made by the unit owner.
- All-In (All Inclusive): Covers the building structure plus most interior fixtures and finishes within units, including upgrades—owners are still responsible for personal belongings and liability.
Common Areas
Hallways, elevators, lobbies, gyms, pools, and other shared amenities are protected under this part of the policy.
Who Needs To Know About Condo Association Insurance?
This insurance is essential for:
- Condo Boards & HOA Leaders – You’re responsible for making sure the property is properly protected.
- Property Managers – A solid policy ensures smooth operations and risk management.
- Real Estate Agents & Mortgage Lenders – You need to advise clients accurately about what’s covered and what’s not.
- Condo Buyers & Owners – Understanding the limits of the master policy helps you purchase the right personal coverage.
- Insurance Brokers – Crafting the right policy means knowing exactly what the association needs—and what’s required by law or lenders.
How The Huneycutt Group Helps Associations Get It Right
At The Huneycutt Group, we work with condo associations, property managers, and boards to create insurance packages that go beyond the basics.
A Worry-Free Experience
We take the complexity out of coverage. Our team handles the details, explains your options, and ensures your policy meets all your needs—no guesswork.
Need Higher Limits or Special Coverage?
We offer customizable policies with higher liability limits, directors & officers (D&O) coverage, equipment breakdown, and more—tailored to your community’s risks.
Let’s Protect Your Condo Community Right
Not sure if your condo association is properly insured? Whether you’re renewing a policy, reviewing for compliance, or building a new community from the ground up, The Huneycutt Group can help you secure reliable coverage and peace of mind. Contact us today to get started.
Condo Association Insurance: FAQs
What does a condo association master insurance policy cover?
It typically covers the building structure, common areas, and liability for injuries or damages in shared spaces.
What’s the difference between a condo master policy and an HO-6 policy?
The master policy covers the building’s exterior and shared areas; HO-6 covers the inside of a unit and personal belongings.
Who pays for condo association insurance?
The condo association pays for it using funds from owner dues or assessments.
Do I still need condo insurance if my HOA has a master policy?
Yes. You need an HO-6 policy to protect your unit’s interior, your belongings, and your personal liability.
What happens if the master policy coverage isn’t enough?
If the master policy has limits that don’t fully cover damages, the HOA may issue a special assessment to owners. Additional coverage on your personal HO-6, like loss assessment, can help protect individual owners in these cases.
