Comparison
Master Policy vs. HO-6: Who Insures What in a Condo?
The association's master policy insures the building and shared property under whichever allocation the declaration sets, while an HO-6 policy fills the gap for the owner's interior, personal property, loss assessment, and improvements the master policy doesn't reach.
The master policy the association carries covers the building structure and common elements based on the allocation written into the declaration, whether that's bare walls, all-in, or original specifications. An HO-6 policy is the individual owner's separate policy that covers whatever the master policy doesn't reach inside the unit, plus personal property, loss of use, and loss assessment coverage that responds when the association levies a special charge after a shared loss.
Every condominium sits under two layers of insurance at once, and the line between them is drawn by the declaration, not by common sense. A board treasurer who assumes the master policy covers everything up to the drywall, or an owner who assumes their HO-6 covers a burst pipe in a shared riser, can both be wrong depending on how the governing documents allocate responsibility.
The master policy is purchased and owned by the association, paid for through assessments, and typically covers the building's structure, common elements, and the association's own liability exposure. The HO-6 policy belongs to the individual unit owner, is purchased separately, and is built to dovetail with whatever the master policy leaves uncovered inside the four walls of the unit.
Getting this pairing wrong is one of the most common and most expensive coverage gaps in condo living, and it shows up most painfully after a fire or water loss when an owner discovers their upgraded kitchen wasn't covered by either policy.
Association Master Policy
The building-level policy the association carries for shared property
Strengths
- Covers the building structure, roof, and common elements as defined by the declaration's insurance allocation
- Provides the association's general liability coverage for common area accidents and slip-and-fall claims
- Typically insures shared systems like elevators, boilers, and centralized HVAC equipment
- Satisfies lender requirements such as Fannie Mae, Freddie Mac, FHA, or VA master property conditions
- Extends to fidelity coverage for the board and management company handling association funds
Where it falls short
- Does not cover an owner's personal belongings, furniture, or electronics inside the unit
- Under a bare-walls allocation, does not cover cabinetry, flooring, fixtures, or interior finishes
- Does not pay an owner's living expenses if the unit becomes uninhabitable after a covered loss
- The association's deductible, sometimes sizable after a named storm, is generally the owners' collective responsibility
Best for
Insuring the building itself and the association's liability, funded collectively through assessments rather than by any single owner.
HO-6 Policy
The individual unit owner's policy filling the gap the master policy leaves
Strengths
- Covers interior finishes, cabinetry, and improvements the master policy doesn't reach, depending on allocation
- Insures personal property, including furniture, electronics, and clothing, against covered perils
- Provides loss of use coverage for temporary living expenses if the unit is uninhabitable
- Includes loss assessment coverage that reimburses the owner for a special assessment tied to an insured loss
- Carries personal liability coverage for incidents that happen inside the owner's unit
Where it falls short
- Does not cover the building's structure, roof, or common elements, which remain the association's responsibility
- Loss assessment coverage is usually capped at a modest sublimit unless the owner increases it
- Does not respond to damage caused by a maintenance failure that is the association's obligation to repair
Best for
Every unit owner, regardless of allocation type, since the master policy alone never covers personal property or interior finishes.
Side by side
| Association Master Policy | HO-6 Policy | |
|---|---|---|
| Who buys it | The association, funded by all owners | Each individual unit owner |
| Building structure | Covered | Not covered |
| Common elements (lobby, elevators, roof) | Covered | Not covered |
| Unit interior finishes | Depends on the declaration's allocation | Fills whatever gap the master policy leaves |
| Personal property (furniture, electronics) | Not covered | Core coverage |
| Loss of use / additional living expense | Not applicable | Core coverage |
| Loss assessment reimbursement | Not applicable | Available, usually with a sublimit |
The declaration decides where the seam falls
State condominium statutes generally leave the precise allocation of interior coverage to the association's declaration rather than mandating one approach nationwide. Some declarations describe a bare-walls-in approach where the master policy stops at the unfinished surfaces, others describe an all-in approach where finishes and even betterments are covered, and some track original specifications as built by the developer.
Because the wording varies so much from one association to the next, boards and owners alike are better served reading the actual declaration language rather than assuming a national default. A board's insurance agent and the owner's personal lines agent ideally coordinate so the two policies meet without an expensive gap or an expensive duplication.
Where loss assessment coverage bridges the two
When a shared loss exceeds the master policy's limits or falls within the association's deductible, the board can levy a special assessment against every owner to cover the shortfall. Loss assessment coverage under the HO-6 policy is designed to reimburse the owner for that specific charge, up to whatever sublimit the policy carries, which is why many owners choose to raise that limit well above the default amount, especially in wind- or flood-exposed areas with large master policy deductibles.
Why lenders care about both policies
Fannie Mae, Freddie Mac, FHA, and VA guidelines generally expect the association to carry master property insurance at or near replacement cost with deductibles sized appropriately relative to the coverage amount, and they typically expect the individual owner's HO-6 policy to address the interior and personal property side. A mismatch between the two, or an association that lets its master policy lapse or under-insure, can affect a unit's marketability and financing, so confirm current lender requirements with association counsel or a licensed Provident agent.
How to decide
What does the declaration say about interior allocation?
Read the actual insurance clause rather than assuming bare-walls or all-in; declarations vary widely on this point.
Does your HO-6 loss assessment limit match the master policy's deductible?
A large named-storm or flood deductible on the master policy can translate into a special assessment that outpaces a default sublimit.
Have you upgraded the unit's finishes since purchase?
Betterments and improvements often need to be scheduled separately on the HO-6 policy to be fully covered.
Does the association's master policy meet current lender conditions?
Confirm replacement cost valuation and deductible limits align with Fannie Mae, Freddie Mac, FHA, or VA expectations.
The bottom line
The master policy and the HO-6 policy are not competing coverages, they are two halves of one system, and the declaration is the rulebook that tells you where one ends and the other begins. Owners who read that allocation language and size their loss assessment coverage accordingly avoid the worst surprises after a shared building loss.
Frequently asked questions
Coverage covered here
Keep comparing
All-in vs bare walls
An all-in master policy extends coverage to interior finishes and even betterments, while a bare-walls policy stops at the unfinished structure, leaving owners responsible for everything from drywall inward through their HO-6 policy.
Read itHOA vs condo association insurance
A homeowners association typically insures common areas and amenities while each owner insures their own freestanding home, whereas a condominium association's master policy reaches into the building itself, making the allocation between association and owner coverage far more involved.
Read itAssociation package vs monoline
A package policy bundles an association's property, general liability, and often crime or D&O coverage under one program, while monoline coverage places each line separately, which can help when one exposure, like coastal property, needs a specialty market.
Read itReady to see your options?
One application. Up to 10 competing quotes. Answer a few questions and we will shop your business to our A-rated carrier network, then a licensed agent walks you through the options.