When it comes to condominium insurance, one question drives nearly every claim dispute: “Whose policy pays?” The answer depends on how the condominium association’s master policy interacts with each unit owner’s individual coverage—a relationship that is often misunderstood.
The Three Master Policy Types
- Bare Walls
The association insures only the structure and common areas—think exterior walls, roof, and shared spaces. Everything inside the drywall, including cabinets, flooring, and fixtures, is the unit owner’s responsibility. This means the owner’s HO-6 policy must include enough building coverage to restore the interior. - Original Specifications
The association’s policy insures the unit as it was originally built, covering builder-grade finishes but not later upgrades. If you installed granite countertops or hardwood floors, those improvements require extra coverage on your HO-6 policy. - All-In
The most comprehensive option. The master policy covers the unit’s structure, original features, and owner-installed upgrades. Owners still need an HO-6 for personal property and liability but may not need significant building coverage.
Why It Matters
These distinctions become critical after a loss. Misunderstandings often lead to gaps in coverage, delays, and lawsuits. Associations may assume the master policy covers more than it does; unit owners often underestimate what their HO-6 needs to include.
Best Practices
- Check your documents. Know whether your building uses bare walls, original specs, or all-in coverage.
- Educate owners. Associations should explain coverage responsibilities clearly and review policies annually.
- Coordinate claims. Disputes over deductibles and overlapping coverage can be avoided with clear communication protocols.
The takeaway? Condo insurance isn’t just about protecting property—it’s about eliminating ambiguity before disaster strikes. Understanding how master and unit owner policies interact is the best defense against unexpected costs and conflict.