What Is the Master Policy for an HOA?

A pipe bursts in the wall between your unit and the hallway.

Water is everywhere. Ceiling tiles warped. Flooring buckled. Your kitchen cabinets are soaked.

Your first call is to the HOA. Their first question: “What type of master policy do we have?”

That answer determines who pays for what. And if you don’t know it, you’re about to get an expensive education. 

Your community’s master insurance HOA policy is one of the most important HOA rules-adjacent documents you’ll encounter as a homeowner or board member — and one of the least understood.

What is an HOA Master Policy?

An HOA master insurance policy is a comprehensive insurance package purchased by the association using homeowner dues. It provides property and liability coverage for the community’s shared structures and common areas.

Every homeowner in the community pays for this coverage through their regular assessments. But what it actually covers depends entirely on which of three policy types your HOA carries.

 

 

The Three Types of Master Policies

Bare Walls Coverage

The most limited option. Bare walls coverage protects the basic building structure — exterior walls, framing, roofing — plus wiring and plumbing within the walls and common areas like lobbies, hallways, and parking lots.

Everything from the drywall inward is your responsibility. That means paint, flooring, cabinets, fixtures, appliances — all of it. Under bare walls coverage, homeowners carry the most individual insurance burden.

Single Entity Coverage

The middle ground. Single entity covers everything bare walls does, plus the original fixtures and improvements installed by the developer. Think original cabinets, appliances, flooring, and built-in features as they existed when the unit was first constructed.

Any upgrades or renovations you’ve made since purchase are still your responsibility to insure.

All-Inclusive Coverage

The most comprehensive option. All-inclusive policies cover building structure, original fixtures, and homeowner upgrades and customizations. This leaves the fewest gaps for individual owners.

Even under all-inclusive coverage, personal belongings — furniture, electronics, clothing — are never covered by the master policy. You still need your own insurance for those.

 

 

What the Master Policy Always Covers

Regardless of policy type, the master policy typically protects common area property including lobbies, stairwells, swimming pools, clubhouses, fitness centers, exterior structures, landscaping, fences, playgrounds, and parking areas.

It also provides liability coverage for accidents in common areas (slips, falls, pool incidents), legal defense costs for claims against the association, and medical costs for injuries in shared spaces.

What It Never Covers

No master policy covers personal property inside your home. Furniture, electronics, clothing, jewelry, and similar belongings always require separate coverage. The master policy also won’t cover loss of use if your unit becomes uninhabitable, personal liability for accidents inside your unit, or your share of the deductible if the master policy is triggered.

Why You Still Need an HO-6 Policy

Your individual HO-6 policy (condo insurance) fills the gaps the master policy leaves. It covers personal belongings, interior improvements beyond what the master policy addresses, personal liability, additional living expenses if your unit is temporarily uninhabitable, and loss assessment coverage if the HOA levies a special assessment after a major claim.

The master policy and HO-6 work in tandem. The master covers the outside and shared spaces. The HO-6 covers everything inside your unit. Without both, there are gaps — and gaps mean out-of-pocket costs when something goes wrong.

Protect Yourself with the Right Policy

Request a copy of your community’s current master policy. Confirm whether it’s bare walls, single entity, or all-inclusive. 

Then review your coverage with an insurance agent to identify gaps and purchase an HO-6 policy that fills them. Review both policies annually as property values and coverage needs change.

HOA Start helps boards keep critical documents like insurance policies organized and accessible. Every authorized member can access governing documents, insurance certificates, and policy details from one secure platform. 

Start your free trial today and make sure your community always knows where to find the answers.

FAQ

What are the three types of HOA master policies?

• Bare walls covers only the building structure, wiring, plumbing within walls, and common areas
• Single entity covers bare walls plus original fixtures and improvements installed by the developer
• All-inclusive covers building structure, original fixtures, and homeowner upgrades and customizations
• Personal belongings are never covered under any master policy type

Do I need my own insurance if my HOA has a master policy?

• Yes — the master policy does not cover personal property, interior upgrades, or personal liability
• An HO-6 policy fills the gaps left by the master policy regardless of its coverage type
• HO-6 also covers additional living expenses and loss assessment from HOA special assessments
• Review your HO-6 coverage annually to ensure it matches your current property value and belongings

How do I find out what master policy my HOA has?

• Request a copy of the current master policy or insurance certificate from your board or management company
• The policy type (bare walls, single entity, or all-inclusive) should be clearly stated in the declarations page
• If the board cannot provide the information, check your HOA’s governing documents for insurance requirements
• An insurance agent can review the master policy and help you understand your individual coverage needs

What happens if the master policy doesn’t cover a loss?

• Homeowners are personally responsible for losses not covered by the master policy
• Without adequate HO-6 coverage, out-of-pocket costs for interior damage can reach tens of thousands of dollars
• If a claim exceeds the master policy limits, the HOA may levy a special assessment on all homeowners
• Loss assessment coverage on your HO-6 policy can help cover your share of those special assessments