Q: What is a condo association master policy?
A: The property and liability policy the condominium association carries on the building and common areas, paid for through owner assessments. It covers the structure and shared spaces, but where its coverage stops and your personal HO-6 policy must begin depends entirely on which type of master policy the association carries. That boundary is one of the most misunderstood parts of condo ownership.
Q: What are the three types of master policy coverage?
A: They go by several names, but the spectrum is: bare walls (sometimes called studs-out), which covers only the structure and common areas, leaving everything inside your unit's framing to you; single entity (sometimes called walls-in or original specifications), which covers the unit as the developer delivered it, including original fixtures, but not your upgrades; and all-in (or all-inclusive), which covers original fixtures and most built-in improvements, leaving mainly your personal property, liability and loss assessment exposure to your HO-6.
Q: How do I find out which type my building has?
A: Ask the association or property manager for the master policy's declarations page and the section defining coverage on units, and read the condo documents, which often set the insurance responsibility split. Do not guess from what a neighbor said, and do not assume a newer building is all-in. The answer should come from the documents, and your insurance agent can review them with you.
Q: What does my HO-6 need to cover under each type?
A: Under bare walls, your HO-6 dwelling (Coverage A) amount must essentially rebuild your unit's interior: drywall, flooring, cabinets, fixtures and built-ins, plus your contents, liability and loss assessments. Under single entity, Coverage A mainly funds your upgrades and any items the master policy excludes. Under all-in, Coverage A can be smaller, but you still need contents, liability, loss of use and loss assessment coverage. Getting the boundary wrong in either direction means paying twice or being dangerously short.
Q: What is loss assessment coverage and why does it matter here?
A: If the association levies a special assessment on owners for a covered loss to shared property, such as a master policy deductible or an uninsured shortfall, loss assessment coverage on your HO-6 can pay your share. Florida condo deductibles can be large, especially hurricane deductibles stated as a percentage of the building value. The base loss assessment limit on many HO-6 policies is low, and raising it is usually inexpensive.
Q: Do master policy types affect claims after a hurricane?
A: Yes, twice over. First, the coverage boundary decides who pays for what inside your unit. Second, hurricane deductibles on Florida master policies are often a percentage of the building's insured value, and associations can pass uncovered portions to owners by assessment. Knowing your building's master policy type, deductible and your own HO-6 limits before storm season is far easier than learning them during a claim.
Q: What should I review with my insurance agent?
A: Bring three things: the master policy declarations or a summary from the association, the condo documents section on insurance responsibility, and your current HO-6. The review should confirm which master policy type applies, set your Coverage A amount to match, right-size loss assessment coverage, and check loss of use and contents limits. A short review now prevents the two classic condo mistakes: insuring the same interior twice, or leaving a six-figure interior rebuild to yourself.
This article is general information, not legal or policy advice. Master policy structures, condo documents and HO-6 forms vary, and claim outcomes depend on the specific documents and facts. Review your building's documents and your own policy with a licensed insurance professional.
Own a condo in South Florida and not sure where the association's policy stops and yours starts? GWS Insurance can review the master policy and your HO-6 side by side. Call (516) 476-6742 or visit https://www.gwsinsurance.com/contact.