Question 1

What does my HOA's master policy actually cover?

Accepted Answer

It depends entirely on your association, which is why this cannot be answered generically. Broadly, master policies fall into two camps: those covering the building structure only up to the unfinished interior surfaces, and those also covering original fixtures and finishes within units. Improvements you made are commonly excluded either way. The only reliable answer comes from reading your specific policy.

Question 2

How do I find out which kind my association has?

Accepted Answer

Request a copy of the master policy and the declarations page from your HOA or property manager — you are entitled to it as an owner. Send it to us and we will read it and tell you in plain language where it stops. We do this at no charge whether or not you end up placing coverage with us.

Question 3

What is loss assessment coverage and why does it matter?

Accepted Answer

When a loss exceeds the association's coverage, or falls under its deductible, the association can assess the cost across all unit owners. Loss assessment coverage on your policy responds to your share. Master policy deductibles on larger buildings can be substantial, and your slice of one is a real and fairly common expense.

Question 4

My building has earthquake coverage. Do I still need my own?

Accepted Answer

Often yes. An association's earthquake coverage typically addresses the structure, not the interior of your unit, your belongings, or your additional living expenses if the building is uninhabitable. Earthquake deductibles on master policies are also usually a percentage of the building value, and your share of that can be assessed back to you. These are two different questions and they need separate answers.

Question 5

What happens if a leak from my unit damages my neighbor's?

Accepted Answer

That is a liability question, and your unit owner policy is where it lands. Water escaping from a unit and traveling downward is one of the most frequent claims in multifamily buildings, and in a stacked building the damage can involve several units and the association's common areas at once. Liability limits worth reviewing rather than defaulting.

Question 6

Does my policy cover improvements I made to the unit?

Accepted Answer

It should, but only if it is written to. Upgraded flooring, a remodeled kitchen, custom built-ins. If the master policy covers original finishes only, the difference is yours to insure. This is the single most common source of underinsurance we see on condo policies, because people remodel and never revisit the coverage.

Question 7

I rent my unit out. Is that different?

Accepted Answer

Yes. A unit you rent to a tenant is a different exposure from one you live in, and it needs a policy written for that use. Coverage for your belongings changes, liability changes, and you may need loss of rents. Telling us how the unit is actually occupied is more important than any other single detail.

Question 8

How much personal liability should I carry?

Accepted Answer

More than the default, in most cases. The liability limit included on a unit owner policy is generally modest, and it is the coverage standing between an incident and your savings. For clients with meaningful assets, a personal umbrella sitting above the condo and auto policies is usually inexpensive relative to the protection it adds.

Condo & Co-op Insurance in Washington

What condo coverage can include

Common questions about condo & co-op insurance