Are Condominiums Covered By Specific Insurance Policies? | Coverage Layers Explained

Yes, condominiums are usually protected by a building master policy plus a condo insurance policy for each owner’s unit and belongings.

Buying a condo feels different from buying a house, and the insurance side proves it. Instead of one standard homeowners policy, coverage depends on several overlapping policies, forms, and bylaws that all mesh together.

Many owners only discover the gaps after a pipe bursts or a storm rips through the roof. At that point everyone asks the same question: which insurance policy pays for what? Learning that answer early helps you pick the right limits, avoid harsh surprises, and keep a claim from turning into a long argument.

Condo Insurance Basics For Owners

Every condominium setup starts with two main layers of protection. One provides coverage for the shared building, and the other protects your slice of that building and the things you keep inside it. Lenders, condo boards, and regulators all expect both layers to stay in place.

The first layer is the association’s master policy. The association buys this policy and pays the premiums out of monthly assessments. It usually protects the structure itself and the shared areas, and it often includes liability protection for accidents that happen in those spaces.

The second layer is your own condo insurance policy, often called an HO-6 policy or condominium unit owners form. That policy works like a focused version of homeowners coverage. It steps in for your personal belongings, the interior of your unit, your personal liability, and some living expenses if you need to move out after a covered loss.

Why Condos Use Specific Policy Forms

Insurers group home policies by the type of property being insured. A stand-alone house usually uses an HO-3 policy, while condos rely on the HO-6 form. That form zeroes in on what you actually own: the interior space, fixtures that belong to you, and your possessions.

Guidance from the National Association of Insurance Commissioners explains that the condominium unit owners form insures your personal property plus your walls, floors, and ceilings against the same broad list of covered perils that apply to standard homeowners policies, while the building and grounds fall under separate coverage from the association.

Reading Your Condo Bylaws And Master Policy

Before you shop for or adjust coverage, you need two documents: the association bylaws and the master policy itself. Those papers describe which parts of the building fall under the association and which belong to each owner.

The Insurance Information Institute notes that some master policies insure individual units only as they were originally built, while others insure only the bare structure. Any upgrades you add on your own, such as wood floors or custom cabinets, often need extra protection on your personal policy.

What The Condo Association Master Policy Covers

The master policy insures the structure you share with other owners. Association boards buy it to protect the building as a whole and to keep common areas open after a disaster. From the insurer’s point of view, that policy looks like a commercial package for a residential building.

In most buildings, the master policy protects:

• The roof, exterior walls, and foundations
• Hallways, lobbies, and stairwells
• Elevators, boilers, and mechanical rooms
• Shared amenities such as pools, gyms, and outdoor courts
• Liability for injuries or property damage that occur in those common spaces

The Maryland Insurance Administration explains that condominium owners usually rely on two different types of insurance: the master policy for the shared structure, and a unit owner’s policy for their own space. State rules can even let associations require each unit owner to carry that second policy and set minimum standards for it.

Master Policy Deductibles And Loss Assessments

The master policy carries its own deductible, which can reach tens of thousands of dollars in large buildings. When a claim hits that policy, the association often spreads that deductible across all owners through a special assessment.

State guidance points out that when a loss starts inside a single unit but is handled by the master policy, that unit’s owner may be charged a portion of the deductible, while losses that start in common areas treat the deductible as a shared expense. If your condo insurance includes loss assessment coverage, it can help cover your portion of that bill when the master policy limits or deductibles leave a gap.

What Your Individual Condo Insurance Policy Covers

Your own condo insurance policy fills in the other side of the picture. Under the HO-6 form, the policy usually includes several major pieces of coverage that mirror a standard homeowners contract, adjusted for condo ownership.

Most condo policies include:

• Building property coverage for the interior of your unit
• Personal property coverage for your belongings
• Personal liability coverage
• Medical payments to others
• Loss of use coverage for temporary living expenses
• Loss assessment coverage, up to specific limits

Industry guides from large insurers describe HO-6 building property coverage as protection for interior surfaces, fixtures, and built-ins that you must repair after a covered loss. The same material explains that personal property coverage protects your furniture, clothes, electronics, and other belongings, often both inside the unit and when they are temporarily away from home.

Liability coverage applies if someone gets hurt inside your unit or if you accidentally damage someone else’s property and face a claim. Loss of use coverage helps pay for lodging, meals, and related expenses if your unit becomes unlivable after a covered event. Loss assessment coverage offers a cushion if the association passes along part of a covered loss or master policy deductible.

Item Or Risk	Master Policy	HO-6 Unit Policy
Exterior structure and roof	Provides coverage for damage to shared exterior shell	Not included
Interior walls and built-in cabinets	May protect original finishes, depending on policy style	Protects interior you are responsible for, plus upgrades
Common areas and amenities	Provides coverage for lobbies, halls, pools, gyms, and similar areas	Not included
Personal belongings	Not included	Provides coverage for furniture, clothes, electronics, and other contents
Liability in common spaces	Protects association against claims from shared areas	May respond if you caused the incident
Liability inside your unit	Usually not included	Provides coverage if guests are injured or property is damaged
Loss assessment charges	Not included	Can protect your share of some association assessments

Common Exclusions Condo Owners Forget

Condo insurance does not protect every risk. Exclusions matter as much as inclusions. Floods and earthquakes usually require separate policies. Maintenance problems, gradual wear, and pest damage fall outside standard coverage and stay on the owner’s budget.

The Insurance Information Institute’s flood insurance guidance notes that standard homeowners, condo, and renters policies do not protect flood damage. Protection in that area usually comes from the National Flood Insurance Program or from private flood insurers, with separate limits, deductibles, and waiting periods.

Are Condominiums Covered By Specific Insurance Policies? Coverage Types Explained

So, are condos protected by specific insurance policies? The answer is yes, but those policies work together rather than on their own. You have one set of policies designed for the shared structure, and another set meant for the unit you own and the property you keep inside it.

On the building side, the association carries a master policy. It might be written as bare-walls coverage that stops at structural elements, or it might be written as all-in coverage that stretches across original fixtures and finishes. The bylaws explain which version your building uses and how far that collective protection reaches.

On the individual side, each owner usually buys an HO-6 policy. Regulators describe that form as the standard unit owner package: it protects personal property, interior walls and floors, and personal liability, subject to the policy’s limits, deductibles, and exclusions. Lenders lean on that form as a condition for mortgages because it protects their interest in the unit when a major loss occurs.

In practice, you end up with a stack of specific insurance policies that intersect. The master policy protects the building. The HO-6 policy protects the space and things you own. Separate flood or earthquake policies step in where standard forms stop. An umbrella policy can add more liability protection on top of those limits if your overall risk calls for it.

How To Map Coverage For Your Own Condo

To see how this works for your unit, follow a simple three-step map. Each step lines up one layer of protection so that you can spot gaps instead of guessing during a claim.

First, read the master policy summary. Note whether it is bare-walls, single-entity, or all-in. Look at deductibles, liability limits, and any special exclusions for wind, hail, or other frequent hazards in your region.

Next, pull the declarations page for your HO-6 policy. Match each coverage line to something tangible: walls and fixtures, contents, personal liability, loss of use, and loss assessment. Check whether your personal property coverage pays on a replacement cost basis or actual cash value, and whether classes of property such as jewelry or bicycles have low sublimits.

Then, think about hazards that standard policies do not handle. If your complex sits near a river or coastline, speak with an insurance agent about federal flood insurance or private flood options. In quake zones, ask how standalone earthquake policies work with your existing coverage and what deductibles and limits apply to condo units.

First Steps To Fine-Tune Your Condo Insurance

Once you know how the current policies line up, you can adjust them so that a single incident does not leave you with a stack of unpaid bills. That process does not require a law degree. It just needs a patient review of how damage would play out in different situations.

Start by walking through your unit and making a rough home inventory. Open closets, photograph each room, and list big-ticket items such as electronics, furniture, and appliances. That snapshot helps you choose a realistic personal property limit and speeds up any later claim.

Next, think through upgrades that sit inside your unit. New floors, stone countertops, built-in shelving, and higher-end fixtures can cost far more to replace than basic original finishes. If your master policy stops at bare walls or only protects original features, your HO-6 building property limit needs to reflect the cost to rebuild those improvements after a covered loss.

Finally, review your liability and loss assessment coverage. If your building has shared pools, gyms, or busy common areas, a higher liability limit on your condo policy and possibly an umbrella policy can add a layer of protection. A higher loss assessment limit can help if the association faces a large covered claim that spills over the master policy limits.

Common Condo Insurance Gaps And How To Avoid Them

Condo owners tend to run into the same trouble spots, often because they rely too heavily on either the master policy or their own HO-6 policy. A quick review of the most common gaps can help you avoid problems that frustrate other owners.

One gap appears when the master policy has a very high deductible. If a fire or storm damages multiple units, that deductible might be spread in large chunks across everyone in the building. Without loss assessment coverage, a unit owner may need to write a large check before repairs even begin.

Another gap shows up in water damage. Standard HO-6 policies often provide coverage for sudden and accidental water discharges, such as a burst pipe, but they do not protect water coming from outside the building. That is where flood insurance comes in. Owners who skip flood coverage may assume the master policy will save them, only to learn that both policies exclude that type of loss.

A third gap involves improvements. If you bought a unit with builder-grade finishes and invested heavily in upgrades, a claim based only on original construction values might fall short of the actual cost to rebuild your interior. Building property limits on your HO-6 policy should factor in those additions instead of just the starting condition of the unit.

Coverage Gap	Who Feels The Cost	Way To Reduce The Risk
High master policy deductible	Owners charged through special assessments	Add or raise loss assessment coverage on your HO-6 policy
No flood or quake coverage	Owners pay for structural and interior damage on their own	Ask about separate flood or earthquake policies for the building and your unit
Underinsured interior upgrades	Owner pays to rebuild better finishes and custom work	Increase building property limits to reflect real replacement costs
Low personal liability limits	Owner savings and income at risk after a large claim	Raise liability limits or add a personal umbrella policy
Poor home inventory	Disputes over value of damaged or stolen items	Create a photo or video inventory and store a copy offsite
Association coverage changes	Owners left with gaps after bylaws or policy terms shift	Review master policy and bylaws each year before renewal

Questions To Ask Before You Renew

Before each renewal, ask a short list of pointed questions so that your coverage stays aligned with your condo life.

• Have association deductibles changed in the past year?
• Has the master policy form shifted between bare-walls, single-entity, and all-in?
• Have you added or removed any major improvements inside your unit?
• Would a claim at current prices push you past your personal liability limit?
• Do you now live in an area where flood or earthquake coverage deserves a fresh look?

Clear answers to those questions help you and your insurance agent tune your coverage choices and keep the full insurance stack running smoothly.