Master Policy

The master policy is the HOA's property and liability insurance policy covering the building structure (in condominiums) and common areas. It protects the association against property damage (from fire, storms, etc.) and general liability claims arising from injuries on common-area property. There are two main types of master policies: 'bare walls in' coverage (covers only the building structure up to the unfinished drywall — owners are responsible for their own interior fixtures and improvements) and 'all-in' or 'all-inclusive' coverage (covers the unit to a defined standard including original fixtures, leaving only owner-added improvements to the individual's own policy). Homeowners need to coordinate their HO-6 unit owner's policy with the association's master policy to avoid coverage gaps.

Understanding what the master policy covers versus what your HO-6 covers is critical — a gap between the two can leave you personally responsible for major repair costs after a covered loss.