Determining Coverage Gaps Between HOA and Condo Insurance 

For Texas condo owners, knowing the difference between HOA master policy coverage and personal condo insurance can help prevent unexpected coverage gaps. At TS Insurance, we guide clients through these details so they can make informed decisions about insuring their property and personal assets.

What Does the HOA Master Policy Cover?

The HOA master policy covers the building’s common areas and shared structures, including hallways, lobbies, roofs and exterior walls. Depending on how the policy is written, it may also include original fixtures inside individual units.

HOA master policies are commonly structured in a few ways. Two of the most common are:

• Bare walls: This design generally applies coverage only to the exterior framing and roof, leaving drywall, interior surfaces, finishes, fixtures and unit improvements to the individual condo owner’s policy.
• All-in: This policy typically extends coverage beyond the exterior structure to include original interior fixtures, built-in appliances and standard finishes as originally constructed.

Where Does Personal Condo Insurance Step In?

Personal condo insurance, commonly known as an HO-6 policy, helps cover areas not addressed by an HOA’s master policy. Coverage can include personal belongings, interior alterations, liability insurance and additional living expenses after a covered claim.

For condos insured under a bare walls master policy, interior building components such as flooring, cabinetry, and fixtures are often the responsibility of the unit owner.

Coverage Gaps to Be Aware Of

Review your coverage for these commonly overlooked areas:

• Loss assessments charged by the HOA after major shared losses
• Unit upgrades and improvements beyond the original construction
• Neighbor-related water damage that may not be clearly attributable to a single policy
• Master policy deductibles that can leave unit owners with out-of-pocket expenses

Get Insured Today

Contact TS Insurance to request a no-obligation quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.