Condo owners carry two layers of insurance: their HO-6 unit policy and the HOA master policy. Water damage coverage gaps between the two cost condo owners thousands. Here's exactly what each covers.
Condo insurance involves two separate policies that cover different parts of the building. The HOA master policy covers the building structure — exterior walls, roof, hallways, elevators, and shared mechanical systems. Your individual HO-6 policy covers your unit's interior and your personal property. The boundary between these two coverages — called the 'walls-in' line — is defined by your HOA's declaration documents and varies by building.
Master policies come in two forms: 'bare walls-in' covers only the structural shell and leaves all interior fixtures (cabinets, flooring, appliances, drywall) to your HO-6; 'all-in' or 'all-inclusive' covers interior fixtures to the original builder specification and leaves only your improvements and personal property to HO-6. Knowing your HOA's master policy type is critical — most condo owners do not find out until they file a claim.
For water damage specifically: if a pipe in a shared wall bursts and floods your unit, the HOA master policy typically covers structural damage to the unit back to original specification (under all-in) while your HO-6 covers your personal property, upgrades you made (granite counters, hardwood floors you installed), and your deductible. The deductible gap — where your HO-6 must cover the HOA's deductible if you caused the damage — can be $10,000–$25,000 in newer buildings.
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