What Does HOA Insurance Cover? The Homeowner's Guide
HOA insurance is the master policy your association buys for shared property and common-area liability. It does not cover your belongings, your interior finishes, or liability inside your own unit, so most owners still need their own policy.
Key takeaways
- HOA insurance is the association's master policy for shared property, the building exterior, and common-area liability.
- It never covers your belongings, your liability inside your unit, or improvements you made yourself.
- Master policies come in three forms: bare walls, walls-in, and all-in, and the form decides how much HO-6 cover you need.
- Loss assessment cover on your HO-6 pays your share when a big claim exceeds the master policy or its deductible, but the standard $1,000 is often too low.
- Flood and earthquake damage are normally excluded from both the master policy and a standard HO-6, so they need separate cover.
If you own a condo or house in a homeowners association, part of your dues pays for insurance, and it is easy to assume you are covered. That assumption is the most common and most expensive misunderstanding in HOA living. The master policy protects shared property, not your home as a normal homeowners policy would: your furniture, your renovated kitchen, and injuries inside your unit are outside it.
What the master policy actually covers
The master policy covers property the association owns collectively and liability for injuries on shared property: the roof, exterior walls, foundation, hallways, elevators, lobbies, parking areas, and amenities such as pools, clubhouses, and fitness centres. If fire damages the lobby or a visitor is injured at the pool, the master policy responds first, paying repairs and liability claims up to its limits, including shared electrical, plumbing, and heating systems.
What it does not cover is equally clear: your personal property; your liability for accidents inside your unit; additional living expenses if you cannot stay in your home; and, in most forms, the interior finishes inside your unit. For a single-family home in an HOA, the master policy covers common areas only, so your house still needs its own full policy: see our guide to what hazard insurance is.
The three master policy forms: bare walls, walls-in, and all-in
Where the master policy stops inside your unit depends on which of three forms your association bought, defined in the CC&Rs. Bare walls (studs-out) is the narrowest: the master policy covers only the building shell and common areas, so everything from the drywall inward is your responsibility. Walls-in (single entity) covers the unit as originally built, but not later upgrades. All-in, also called all-inclusive, is the broadest: it covers original fixtures plus owner improvements, leaving you to insure mainly your personal belongings.
| Master policy form | Master policy covers inside your unit | What your HO-6 must cover |
|---|---|---|
| Bare walls | Structure and common areas only | Almost everything from drywall in, plus belongings and liability |
| Walls-in / single entity | Original fixtures and finishes as built | Upgrades and improvements, plus belongings and liability |
| All-in | Original fixtures plus owner improvements | Mainly belongings, liability, and loss assessment |
The consequence is direct: in a bare-walls building you need the highest HO-6 dwelling limit, since you rebuild nearly the whole interior after a covered loss, while in an all-in building you need far less dwelling cover. Never guess: ask for the certificate of insurance and match your dwelling limit to what is left uncovered.
What you still need an HO-6 policy for
An HO-6 policy fills the gaps the master policy leaves. Dwelling cover pays to repair or replace everything from the drywall inward after a covered peril such as fire, windstorm, or hail. Personal property cover pays for your belongings, liability cover pays for injuries or damage you cause inside your unit, and loss-of-use cover pays hotel and meal costs if a covered incident forces you out. Lenders usually require an HO-6 if you have a mortgage. Without one, your belongings, interior, and liability are uninsured.
Loss assessment: when the association's bill becomes yours
When a covered loss exceeds the master policy's limit, or its deductible falls due, the association can pass the shortfall to owners. Your HO-6 loss assessment cover then pays your share, up to its limit and less your own deductible, if the peril is one your own policy covers. Standard HO-6 policies often include only $1,000 of loss assessment cover, which is rarely enough; many owners raise it to $10,000 or more. Note the deductible: associations sometimes accept a very large deductible to keep premiums down, and it is split among owners, so a $100,000 wind deductible in a 40-unit building is $2,500 per owner.
Worked example: a $100,000 deductible split 40 ways
Take a 40-unit building with a $100,000 wind deductible. After an approved storm claim to the roof, the association divides it equally: $100,000 divided by 40 equals $2,500 per owner. An owner with only the standard $1,000 of loss assessment cover claims $1,000 and pays $1,500 out of pocket. An owner who raised the limit to $10,000 claims the full $2,500, subject to their own HO-6 deductible. Raising loss assessment cover often costs only $25 to $50 a year. The peril must also be covered by your own policy.
Deductibles, exclusions, and the flood and earthquake gap
Flood and earthquake damage are normally excluded from both the master policy and a standard HO-6, so a flood or earthquake affecting common areas can produce an assessment with no master backstop, and your loss assessment cover will not reimburse it either. Flood-prone owners need a separate flood policy; earthquake-prone owners need separate earthquake cover. Wear and tear, maintenance, and improvements are never covered, so an assessment to repave the car park is your bill in full. Loss assessment cover is for unexpected insured losses, not upkeep, fines, or disputes. Check your cover against the certificate of insurance and your HO-6 declarations page.
Sources & further reading
- Progressive, What Is Condo (HO6) Insurance?Master policy types, HO-6 cover, flood and earthquake exclusions (verified 2 Nov 2026).
- Kin, Loss Assessment Coverage: Protecting Against HOA Special AssessmentsLoss assessment mechanics, $1,000 standard limit, $25 to $50 annual cost (verified 2 Nov 2026).
This article is general information only, not financial advice.