Condo Master Policy: HOA Insurance

Condo Master Insurance

Property Insurance

Information Guide

Alice Yao | Updated August 19th, 2020

Condo master insurance, or condo association insurance, is the policy that your condo association has in place to cover the building, all of the common areas, and other shared spaces. In some condo master policies, they may even provide coverage for individual unit interiors. 

In this article, we will go over these topics:

Exterior of condo on a sunny day

Different types of master condo insurance

Most condo master insurance policies break down into two types:

  • Bare walls-in: This policy provides coverage for the building structures such as roofing, framing, and insulation. It also insures common areas such as walkways, parking lots, gym, and other shared spaces. This is one of the more common types of condo master insurance. 
  • All-in: This policy extends the coverages of bare walls-in policy to include individual unit fixtures and built-in appliances. Common examples of kitchen cabinets, countertops, dishwasher, etc., are included as part of the coverage. 

There is also a much less common type of condo master policy that only includes coverage for the common areas such as walkways, parking lots, and other shared spaces. This type of policy does not include coverage for structure of the building and is typically found in townhome communities.

If you found out that your condo association carries this type of master policy, you would actually need to talk to your insurance agent about getting a homeowners policy to cover the entire structure of your home.

Master condo certificate of insurance and bylaws

Though you may come across different naming variations of how these master policies are referenced, the most important information is the specific coverage language within the master condo certificate of insurance and condo bylaws. 

A great way to find out what your condo master policy covers is to request for a copy of the master policy. The information listed on a certificate of insurance may be difficult to understand so we recommend consulting your insurance agent for explanation and clarification. 

Condo bylaws are used to determine and clarify how coverages are applied when there is a loss involving an individual condo unit and/or the common areas. Bylaws are rules and regulations used to self-govern a condo association and are usually prepared by attorneys working with a condo association’s board of directors or property management company. 

You may obtain these documents by requesting them from either the board of directors or property management company.

Living room inside a condo unit

What are exclusions in condo master insurance?

Similar to homeowners insurance, condo master insurance also has exclusions for coverages. 

List of the common insurance exclusions are:

  • Earthquake
  • Flood
  • Mold
  • Wear and tear
  • Neglect
  • Insect and vermin infestations
  • Intentional damage
  • Nuclear damage
  • Act of war
  • Acts of government

Condo associations may add endorsements to master policy

Here in the Pacific Northwest where risk of earthquake is high, many condo associations will choose to add earthquake endorsements for a more comprehensive protection.

It is important to be informed of the type of coverages that are afforded from your condo master policy in order to adequately supplement it with your personal condo unit insurance coverage. 

Many situations are unique and every insurance company has its own guidelines. We always recommend reaching out to your insurance agent for a comprehensive review of your coverages to ensure you are properly and adequately covered.

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