What your association covers, what you cover, and how to read the line between them.
Condo insurance is confusing for one reason: two policies share one building. The association's master policy covers common areas and, depending on the bylaws, some or all of your unit's structure. Your HO-6 covers the rest. Get the dividing line wrong and you either pay twice, or discover after a kitchen fire that nobody covers your cabinets.
The three kinds of master policy
Bare walls: the association covers the structure only, you insure everything from the drywall in, including cabinets, flooring, fixtures and built-ins. Single entity (original specifications): the association covers the unit as originally built; you cover upgrades and belongings. All-in: the association covers the unit including improvements; you cover belongings, liability and the master deductible. Your declarations and bylaws say which one you have, we read them with you.
Dwelling coverage: the number that changes the most
On a bare-walls association, the interior of a two-bedroom condo can cost $40,000–$80,000 to rebuild, cabinets, counters, floors, doors, trim, bath fixtures. On an all-in association it can be nearly zero. Most HO-6 policies default to a low number that's wrong in both directions. We size it to your association's rules and your actual finishes.
Heads up: loss assessment is the coverage condo owners skip
When a claim exceeds the master policy, or hits its deductible, the association can bill every owner a share. Master deductibles in all five states associations have climbed sharply for wind and hail. Loss assessment coverage pays your share, and it's inexpensive. We recommend at least $25,000–$50,000 on nearly every HO-6.
Your belongings and your liability
Personal property replaces furniture, electronics, clothes and everything else after fire, theft, smoke or a burst pipe, ask for replacement cost. Personal liability covers a guest injured in your unit and damage you cause to a neighbor's unit or the building: an overflowing tub, a kitchen fire, a dishwasher line that lets go into the unit below. That last one is the most common condo claim we see.
Water: the condo claim that finds the gap
Water from a unit above, a failed water heater, a sump or drain backup in a garden-level unit, each is treated differently by the master policy and by your HO-6. A water backup endorsement is inexpensive and essential for lower-level units, and we'll confirm how your association handles water intrusion between units so you're not surprised.