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About 77 million Americans live in HOA communities – roughly 23% of the U.S. population. Most of them have no idea what their HOA’s insurance actually covers.
That gap is consequential. HOA insurance determines exactly where the association’s financial protection ends and where your personal liability begins. Getting it wrong means finding out after a water leak or major storm that a repair you assumed the HOA would cover is actually yours to pay.
This guide covers everything you need to understand about HOA insurance: what it is, how the master policy works, the three coverage types, how it differs from your own HOA policy, what it costs, and what’s happening in the states – particularly Florida – where the HOA insurance market is under the most pressure.
HOA stands for Homeowners Association – sometimes written as homeowners’ association. It’s a nonprofit organization established to manage, maintain, and govern a residential community. Related terms you’ll encounter:
In any of these structures, the association collects dues from residents, maintains shared spaces, enforces community rules, and – critically – purchases insurance to protect shared property and the association itself from liability.
As of 2025, approximately 373,000 HOA communities operate across the United States, with the highest concentrations in Florida (50,100 communities), California (50,700+), Texas, and the Mid-Atlantic states.
What HOA insurance does not cover: anything inside individual units, personal belongings of homeowners, flood damage (unless specifically added), earthquake damage, or individual homeowners’ personal liability inside their own homes.
A master policy is the formal HOA insurance instrument purchased by the association. But not all master policies cover the same things. There are three distinct types – and knowing which one your association carries determines exactly what you need to cover on your own.
| Policy Type | What the Master Policy Covers | What Individual Owners Must Cover |
|---|---|---|
| Bare Walls (Studs-Out) | Building exterior, roof, common areas, and shared structural elements only | Everything inside the drywall: flooring, fixtures, cabinets, appliances, and all personal property. Most common in condo associations. |
| Single Entity (Walls-In) | Exterior + original interior components as originally installed (basic drywall, plumbing fixtures) | Owner improvements and upgrades beyond the original build-out, plus all personal property |
| All-In (All-Inclusive) | Exterior + common areas + original built-in fixtures including flooring, cabinets, and appliances | Personal property and any upgrades or renovations the owner made beyond the original specifications |
The most common type in condo associations is bare walls/studs-out coverage. It covers the building structure from the exterior walls outward but requires each unit owner to carry their own HO-6 policy for everything inside – flooring, fixtures, cabinets, appliances, and all personal property.
Before buying into any condo or townhome community, ask specifically which type of master policy the association carries. The answer changes what your personal insurance needs to include – and by how much.
The master policy and your personal homeowners policy are designed to dovetail – each covering what the other doesn’t. Here’s how that division works:
| Coverage Area | HOA Master Policy | Individual HO-6 / HO-3 |
|---|---|---|
| Building exterior and roof | ✅ Yes | ❌ No |
| Common areas (pool, gym, lobby, parking lot) | ✅ Yes | ❌ No |
| Unit interior (walls, floors, cabinets) | ⚠️ Depends on policy type | ✅ Yes (HO-6) |
| Personal belongings (furniture, electronics) | ❌ No | ✅ Yes |
| Liability in common areas | ✅ Yes | ❌ No |
| Liability inside individual unit | ❌ No | ✅ Yes |
| Directors & Officers (D&O) board protection | ✅ Yes | ❌ No |
| Loss assessment (when HOA coverage is insufficient) | ❌ No – triggers it | ✅ Yes (as add-on endorsement) |
| Flood and earthquake | ❌ Requires separate policy | ❌ Requires separate policy |
For condo owners: the relevant personal policy is an HO-6 (condo unit owner insurance), which covers the unit interior, personal belongings, and personal liability inside the unit.
For single-family homeowners in an HOA community: the relevant personal policy is an HO-3 (standard homeowners insurance), which covers the private home’s structure and personal property.
The HOA master policy only covers shared spaces like the clubhouse, community pool, or gated entry – not the individual home itself.
When a covered loss exceeds the HOA master policy’s limits – say, a storm causes $2 million in damage but the policy only covers $1.5 million – the remaining $500,000 may be split among all unit owners as a special assessment.
Loss assessment coverage is an endorsement on individual HO-6 or homeowners policies that protects against these out-of-pocket charges. In Florida, Statute §627.714 mandates that unit owners’ residential policies include at least $2,000 in loss assessment coverage. In most other states, it’s optional – but given how frequently underfunded HOAs levy special assessments, it’s worth adding.
HOA insurance is a specialty commercial product – not all standard homeowners carriers offer it. The following is a list of the best HOA insurance companies and programs serving homeowners associations and condo communities:
| Provider | Notable Features |
|---|---|
| Kevin Davis Insurance Services (KDIS) / Amwins | Specialty program exclusively for community associations. Offers D&O, crime, cyber liability, and commercial umbrella. One of the most widely recognized HOA-specific programs nationally. |
| State Farm | Broad HOA/condo association policies including D&O, employee dishonesty protection, sewer backup coverage, and inflation-adjusted limits. |
| Farmers Insurance | Policies for planned communities and condos covering property damage, unit owner’s coverage, theft, D&O, and extended replacement cost riders. |
| Travelers | Top-rated commercial property insurer available in Florida and nationwide through independent agents. Preferred by mid-size and large associations. |
| Chubb | High-limit commercial property and liability; commonly selected by large luxury condo associations requiring substantial coverage limits. |
| The Hartford | Commercial general liability and property for HOAs; includes directors & officers liability coverage. |
| McGowan Program Administrators | Leading specialty administrator for single-family HOA insurance; property, GL, and D&O coverage nationwide. |
| Distinguished Programs | Specialty HOA package policies commonly used by community association managers for mid-size associations. |
| Citizens Property Insurance | Florida’s state-backed insurer of last resort. Only available when private market coverage is unavailable or unaffordable. |
When evaluating homeowners association insurance programs, boards and their advisors should confirm:
Flood and earthquake riders: not included in standard master policies; must be added explicitly, especially for coastal and earthquake-prone communities
Florida Statute §718.111(11) governs condominium associations and requires them to maintain adequate property insurance covering all condominium property as originally installed. Associations must use their best efforts to obtain replacement cost coverage, with an independent appraisal required at least every 36 months.
Florida Statute §720 governs planned HOA communities (single-family and townhome associations).
Under §718.111(11), the association’s master policy is not required to cover: personal property, floor/wall/ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets, or window treatments inside individual units. After a hurricane or major insurable event, windows, doors, and HVAC systems may shift to the association’s reconstruction responsibility.
In May 2025, Governor DeSantis signed House Bill 913, which made significant changes to Florida condo law:
Associations that invest in impact windows, reinforced roofs, and hurricane mitigation measures have achieved premium reductions of 5–40%, making mitigation improvements one of the most effective cost management tools available.
HOA insurance premiums are paid through monthly dues – not as a separate charge. Understanding how dues break down clarifies why insurance cost increases translate directly into higher fees for every homeowner in the community.
• Operating fund: day-to-day expenses including landscaping, pool and amenity maintenance, utilities, property management fees, administrative costs, security – and the HOA insurance premium
• Reserve fund: long-term savings for major capital repairs and replacements: roofs, parking lots, elevators, HVAC systems, structural repairs
In high-cost markets and coastal communities, insurance can represent 20–40% of an HOA’s annual operating budget — sometimes the single largest line item.
When insurance premiums rise 20–50% in a year (as many Florida associations have experienced), that increase flows directly to homeowners through higher dues or special assessments.
HOA fees vary significantly by location and community type. For state-by-state fee data, see HOA Start’s average HOA fees by state guide.
The question is common and the answer is genuinely personal – HOA living suits some homeowners well and frustrates others. The honest answer depends on what you value and what you’re willing to pay for.
HOA boards managing insurance questions, dues tracking, homeowner communications, and document management can do all of it in one place with HOA Start.
Disclaimer: This content is provided for informational purposes only and does not constitute legal or financial advice. HOA laws and regulations vary by state and community. Consult a qualified attorney, licensed insurance professional, or financial advisor for guidance specific to your association.
HOA Start software and our community HOA website support provide all the tools you need to operate your association efficiently and effectively. Are you ready to take the next step? Join the network of HOA Start customers and share the success with your community. Call 863-462-7483 to speak with a team member, or click here to send us an e-mail message today.
