Master Policy vs HO-6 Insurance: Complete Comparison
Every condo owner is covered by two insurance policies: the HOA's master policy and their individual HO-6. Understanding what each covers — and what falls through the gaps — is critical to avoiding surprise costs after a loss.
| Aspect | Master Policy (HOA) | HO-6 (Owner) |
|---|---|---|
| Who pays for it | HOA (funded by assessments) | Individual owner |
| Building structure | Covers common elements and (usually) building shell | Covers improvements and betterments within unit |
| Interior finishes | Depends on policy type (bare walls vs all-in) | Covers personal upgrades and original finishes if not in master |
| Personal property | Not covered | Covered (furniture, electronics, clothing) |
| Liability | Common area liability only | Personal liability inside your unit and elsewhere |
| Loss assessment | N/A | Optional rider covers your share of HOA deductible |
| Deductible | Can be $5K–$50K+ (often passed to responsible owner) | Typically $500–$2,500 |
Bottom Line
The master policy covers the building; your HO-6 covers your stuff and the gaps. The most dangerous gap is the master policy deductible — if it's large and gets passed to you, loss assessment coverage on your HO-6 is essential.
Frequently Asked Questions
Do I need HO-6 insurance if the HOA has a master policy?
Yes, absolutely. The master policy does not cover your personal property, personal liability, or interior improvements. Without an HO-6, you're personally responsible for all of these — plus potentially the master policy deductible.
What does "bare walls" vs "all-in" mean?
A "bare walls" master policy covers only the building structure — not interior finishes like cabinets, flooring, or fixtures. An "all-in" policy covers the structure plus original interior finishes. With bare walls, your HO-6 needs to cover more.
What is loss assessment coverage?
Loss assessment coverage is an HO-6 rider that pays your share of special assessments resulting from a covered loss. If the HOA's master policy has a $25,000 deductible and passes it to you, loss assessment coverage helps pay it.
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