Insurance for Condos Basics

Condo insurance is confusing because two policies overlap: your HOA’s master policy and your personal HO-6 policy. What the HOA covers depends entirely on the bylaws—and those bylaws are usually vague until something breaks and everyone starts pointing fingers. This guide cuts through the noise so you know exactly what parts of the condo you’re responsible for.

If you haven’t reviewed how coverage works in a normal home first, skim coverage explained. Condo insurance builds on the same logic but splits responsibility differently.

1. The HOA Master Policy: What It Covers (Usually)

Your HOA carries a master insurance policy that protects the building structure and shared areas. But there are two major types of master policies—and knowing which one your community uses determines how much you must insure privately.

• Bare Walls / Studs Only: HOA covers the structure only—no interior finishes.
• Walls-In / All-In: HOA covers structural interior items like drywall and plumbing.

Most condos fall somewhere in between despite what the documents say, so ask the HOA for the actual master policy, not a summary.

2. Your HO-6 Policy: The “Inside Your Unit” Coverage

Your condo policy fills the gaps left by the HOA. It covers:

• Interior walls, flooring, cabinets, and fixtures (depending on master policy type)
• Your personal property
• Liability if guests are injured in your unit
• Loss of use if the building becomes uninhabitable

Liability coverage works the same as a homeowner policy; if you need a refresher, see liability coverage basics.

3. Betterments and Improvements Are Your Problem

Any upgrades you made—new flooring, high-end countertops, remodeled bathrooms—are your responsibility, not the HOA’s.

• HOA restores the unit to original builder grade
• You must insure any upgrades beyond that
• Document improvements so you can prove value after a loss

If you haven’t been tracking improvements, start using the methods from documenting your home.

4. Loss Assessment Coverage: The Most Overlooked Endorsement

If the HOA’s master policy doesn’t fully cover a major loss—fire, storm damage, liability lawsuits—the HOA can pass the remaining cost to all owners. That’s where loss assessment coverage comes in.

• Covers your share of HOA special assessments related to insured losses
• Typical coverage: $10,000–$50,000
• Crucial for older buildings or budget-stretched HOAs

This endorsement protects you from getting hit with a $5,000–$20,000 special assessment out of nowhere.

5. Water Damage in Condos Is a Whole Different Beast

Water claims are the number one source of disputes between HOAs and unit owners. Why? Because responsibility depends on the source.

• Pipe inside a shared wall → usually HOA responsibility
• Pipe inside your unit → usually your responsibility
• Water flowing from another unit → depends on negligence

Make sure your policy includes strong water coverage—and consider endorsements like water backup if the building has aging plumbing. See water backup basics for specifics.

6. Personal Property Coverage Still Works the Same

Your belongings are not covered by the HOA at all. Treat this part just like a homeowners policy.

• RCV vs ACV matters for payout size
• High-value items need scheduling
• Inventorying your items speeds up claims

If you haven’t built a home inventory yet, use the steps from inventory checklist.

7. What to Get in Writing Before Buying a Condo

• The HOA master policy (full document, not a summary)
• A statement of what the HOA considers “interior responsibility”
• History of special assessments for the building
• Any prior water damage or structural issues
• The building’s insurance deductible—this matters a lot

8. The Bottom Line

Condo insurance only works when you know exactly where the HOA stops and you begin. The HO-6 policy isn’t optional—it’s the piece that protects everything you’re actually responsible for inside your walls.