Every month, a portion of your HOA fees goes toward paying for your condo association's master insurance policy.
The HOA master policy is designed to cover:
- Damage to the building’s structure including its roof, walls, stairwells, and elevator
- Damage sustained in all common areas such as the swimming pool, gym, or clubhouse
- Liability lawsuits related to injuries or property damage that occur in common areas of the building, parking lots and garages, walkways and the lawn.
Not all HOA master policies are the same, so it is important to be are aware of just how much of your unit is covered. You can then purchase a condo insurance policy that will complement the HOA master policy coverage.
The three types of HOA master policies you should be aware of are:
- Bare walls coverage: If your master policy is a bare walls policy, you are responsible for covering everything in your unit including flooring, wallpaper, built-in shelves and appliances.
- Single entity coverage: This is similar to bare walls coverage but also includes fixtures, built-ins, and other property as specified by the policy.
- All-in coverage: As the name suggests, this is the most comprehensive master policy available. In addition to the structure of the building, it also covers walls, floors, windows, fixtures and anything else that was included with the unit.
A local independent insurance agent can help you review your master policy so you can be sure you are getting an appropriate condo insurance policy.