What Does an HOA Master Insurance Policy Cover?

A homeowners association master policy is insurance purchased by the HOA for the entire community. It is meant to protect the collective assets owned by all members. This usually includes the physical structures of shared buildings and common amenities. The policy helps pay for repairs if these shared areas are damaged by a covered peril, like a fire or storm. This coverage is funded through the regular dues you pay to the association.

Your individual condo or homeowner's insurance, often called an HO-6 policy, covers everything inside your unit's walls. This includes your furniture, electronics, clothing, and other personal belongings. It also typically covers upgrades you made, like custom flooring or cabinetry, which are not part of the original building. This policy is crucial for protecting your investment from interior water leaks or other unit-specific damage. It may also provide liability coverage if someone is injured in your home.

If a common pipe bursts and floods your unit, you should immediately contact your HOA and your own insurance company. The HOA's master policy may cover repairing the pipe and damaged common walls. Your personal policy would then cover the cost to dry out your unit, replace damaged personal property, and repair your interior finishes. You may need to file two separate claims. Policies vary, and your insurer decides what is covered. Acting quickly can help prevent secondary damage like mold growth.