Protection for Associations, HOAs, and Property Managers
Condominium associations carry significant responsibility when it comes to protecting shared spaces and the overall structure of the property. A Condo Master Insurance Policy—also known as HOA Insurance—is designed to safeguard buildings, common areas, and the association itself from costly property damage and liability claims.
At Keslar Insurance, we help condo associations and HOAs secure the right level of protection, tailored to your governing documents, risk exposure, and community needs.
What Is a Condo Master Insurance Policy?
A condo master policy is a commercial property and liability insurance policy purchased by the condominium or homeowners association (HOA), not individual unit owners. It typically covers:
- The building’s exterior and structural elements
- Common areas like hallways, elevators, clubhouses, and pools
- Liability protection for incidents in shared spaces
- Coverage for board members, employees, and volunteers acting on behalf of the association
The exact responsibilities and coverage needed depend on your association’s bylaws or declarations.
Types of Condo Master Policies
There are three main types of condo master policies. Understanding which one applies to your association is key:
- Bare Walls – Covers only the building’s structure and common elements. Unit owners are responsible for everything inside their walls.
- Single Entity – Covers built-in features within units (cabinets, fixtures, appliances) in addition to the common areas.
- All-Inclusive (All-In) – Offers the most complete coverage, including improvements and built-in unit elements, but still excludes personal belongings and liability.
If you’re unsure what type of policy your association requires, our team can review your governing documents and guide you through the options.
Condo Master Insurance – Frequently Asked Questions
1. What is a condo master insurance policy?
A condo master insurance policy (also known as HOA insurance) is purchased by the condominium association or homeowners association (HOA) to cover shared property, common areas, and liability for the entire condo complex, not individual units. It protects the physical structure of the building and offers liability protection for injuries that occur in shared spaces.
2. What does a master policy typically cover?
Depending on the policy type, it may include:
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The building’s exterior and structure
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Shared spaces like hallways, elevators, lobbies, stairwells, pools, and clubhouses
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Liability coverage for injuries on common property
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Optional protections like Directors & Officers (D&O) liability, equipment breakdown, or crime coverage
3. What are the different types of condo master policies?
There are generally three types:
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Bare Walls – Covers only the structure and common elements. Unit owners insure everything inside their walls.
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Single Entity – Includes limited interior coverage like built-in fixtures and appliances.
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All-Inclusive (All-In) – Covers nearly everything built into the unit, but not personal contents or liability.
Check your association’s bylaws to determine which applies.
4. Do individual unit owners still need personal condo insurance (HO-6)?
Yes. Condo owners must carry an HO-6 policy to insure their personal belongings, interior finishes not covered by the master policy, personal liability, and loss assessment coverage.
5. What is loss assessment coverage, and why is it important?
Loss assessment coverage helps unit owners pay their share of a master policy’s deductible or costs that exceed its limits. It’s especially useful if there’s major damage to common areas or if the association is sued.
6. Is the condo board personally liable for association decisions?
Yes—unless the master policy includes Directors & Officers (D&O) Liability Insurance, which protects board members against claims of mismanagement, wrongful decisions, or breach of fiduciary duty.
7. Does a condo master policy cover flood or earthquake damage?
Not typically. Flood and earthquake coverage must be purchased separately. Associations in high-risk areas should consider these additional policies.
8. What determines the cost of a master policy?
Pricing is based on the size and value of the property, number of units, construction materials, location, past claims history, and the type of coverage selected. Risk mitigation (e.g., sprinklers, updated wiring) can help reduce costs.
9. Who pays for repairs when damage occurs in a unit?
It depends on the master policy type and the source of the damage. If it’s structural or from a shared system (like a pipe or roof), the master policy may apply. If the damage is within the walls of a unit and not covered by the association, the unit owner’s HO-6 policy typically applies.
10. Can the master policy be customized for our association?
Absolutely. Policies can and should be tailored to your governing documents, property layout, and unique risks. Additional options like umbrella liability, crime/fidelity bonds, and ordinance or law coverage can enhance protection.
