What does the HOA master policy cover, and do I need my own insurance too?
Reviewed by the OurHOA team · Updated July 2026
How the HOA master policy and your own HO-6 fit together in a condo or townhome, and where the coverage gap that costs owners money actually falls.
Two policies, one building
If you own a condo or an attached townhome, there are almost always two insurance policies in play: the association's master policy, paid for out of your dues, and your own unit-owner policy, usually called an HO-6. The master policy protects the building shell and the shared parts of the community. Your HO-6 is meant to fill in everything the master policy leaves to you. The trouble is that where one ends and the other begins is not standard - it is written into your community's governing documents and the master policy itself, and owners who assume the HOA covers everything are the ones who get a nasty surprise after a fire or a burst pipe.
The three flavors of master policy
Master policies generally come in three forms, and the form decides how much you personally have to insure. A bare walls policy is the most limited: it covers the structure and common areas but nothing inside your unit, not even the drywall, so you are responsible for everything from the studs in. A walls-in policy (sometimes called single entity) extends into the unit to cover the original interior finishes as they were built - drywall, flooring, cabinets, fixtures - but not your upgrades or your belongings. An all-in policy is the broadest and covers most original interior finishes, though you still insure your personal property and anything you have improved. The single most useful thing you can do is find out which of these three your association carries.
What your own HO-6 is actually for
Your HO-6 covers the things the master policy hands back to you, and there are usually four of them. First, the interior of your unit to the extent the master policy does not reach it, including any improvements or upgrades you have made (an insurer calls these betterments). Second, your personal property - furniture, clothes, electronics, everything that would fall out if you turned the unit upside down. Third, loss of use, which pays for somewhere to live if a covered loss makes your unit uninhabitable. Fourth, personal liability, in case someone is hurt inside your unit or your overflowing tub floods the neighbor below. How much dwelling coverage you need depends entirely on which master policy type sits above you.
The deductible trap most owners miss
Even when the master policy does cover a loss, its deductible has probably climbed a lot in recent years as insurance has gotten more expensive, and it is common for that deductible to run into the tens of thousands of dollars. When a claim is paid, the association often passes the deductible on to the owner whose unit was involved or affected, because the governing documents allow it. That is exactly what loss assessment coverage on your HO-6 is designed to absorb, so it is worth confirming you carry a meaningful amount of it rather than the token default. Our guides on loss assessment coverage and the HOA deductible assessment walk through how those charges land and how to size your coverage against them.
How to find out what you're really responsible for
Do not guess, and do not rely on what a neighbor tells you. Ask the association or its manager for a copy of the master policy declarations page or a certificate of insurance - our guide on getting a copy of the HOA master policy covers how to request it - and read your CC&Rs and bylaws for the section on insurance, which spells out the division of responsibility. Then hand both to your own insurance agent and ask them to size your HO-6 to match. An agent who can see the master policy type and deductible can set your dwelling limit and your loss assessment limit so the two policies actually meet in the middle instead of leaving a gap you pay for out of pocket.
Where the board fits in
This is not only an owner problem. A board that quietly switches from an all-in to a bare walls master policy, or absorbs a big deductible increase, can leave every owner underinsured without anyone realizing it until a claim exposes the gap. Good boards tell owners plainly which master policy type the community carries, what the deductible is, and what that means for the HO-6 each owner should buy. OurHOA gives a self-managed board a simple place to post the current master policy summary and certificate where every owner can find it, so the two halves of the coverage picture stay in sync. What your specific policy covers is still an insurance question, so read the actual documents and talk to a licensed agent before you rely on any of this.
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These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.