What Does My Condo Master Policy Cover?

Are you a new condo owner navigating the murky waters of condo insurance? If so, you’re not alone.

According to the United States Census Bureau, there were approximately 5 million individuals occupying condos across the United States in 1990. As you can imagine, that number has skyrocketed over the past two decades thanks to new developments and expansions.

Being that a condo’s master policy is never one size fits all, it’s no wonder why my customers always ask about what it covers.

Two Types of Condo Master Policies

“Bare Walls-in” – A more basic policy purchased by condo associations. The “bare walls-in” policy does not cover anything inside your individual unit but rather the common areas shared by owners such as the walkways, laundry rooms, storage spaces, mail area, landings, and in-ground pools.

“All-in” – A more comprehensive policy purchased by condo associations. The “all-in” policy covers the permanent fixtures in your condo such as cabinets, counter-tops, and light fixtures.

The Master Policy in Action

Fred lives in a condo complex managed by Eagle Spring Properties. One day, a fire breaks out taking his kitchen cabinets with it. His association has purchased a “bare walls-in” master policy. Under this type of policy, Fred’s cabinets won’t be covered and he’ll have to get it fixed himself, either through a HO6 policy he has purchased, or out of pocket.

Mary, Fred’s friend, lives in the condo complex next door that is managed by a different management company that carries an “all-in” master policy. Mary’s light fixture was damaged by water from a pipe burst. Under this type of policy, the light fixture would be covered and the insurance would pay for its repair or replacement.

Coverage for Personal Items

Personal items are generally not covered by master policies no matter if it’s “bare walls-in” or “all-in”. This would need to be covered by an individual condo policy purchased through H&K Insurance.