Master Insurance Explained
What is Master Insurance?
Master insurance, also known as a master policy or association policy, is a type of insurance carried by a condominium association to protect the building structure and common areas shared by all unit owners.
In Massachusetts, condo associations are legally required to maintain this type of coverage. It ensures that if a fire, storm, or other covered event damages the property’s exterior or shared areas, the cost of repairs doesn't fall entirely on individual unit owners.
🔑 Key Components of Master Insurance
Master policies vary, but most fall into one of two categories. Knowing which one your condo association has is crucial for determining how much personal coverage you need:
1. Bare Walls Coverage
This type of policy covers only the building’s structure—things like the roof, exterior walls, framing, and shared areas (e.g., hallways, elevators, and lobbies). Everything inside your unit—including drywall, flooring, and fixtures—would be your responsibility to insure through an HO6 policy.
2. All-In (or Walls-In) Coverage
This broader policy also includes original interior finishes, like built-in cabinets, countertops, and sometimes even appliances. However, upgrades or renovations you’ve made likely won’t be covered.
3. General Liability Protection
Most master policies also include liability coverage for accidents that happen in shared spaces, such as a slip-and-fall on an icy walkway or damage caused by a burst pipe in a common wall.
4. Deductibles and Special Assessments
Master policies often come with sizable deductibles—sometimes $10,000 or more. If the association needs to pay that deductible or cover a shortfall, they may issue a special assessment to all unit owners, which your HO6 insurance may help cover.
Why Master Insurance Matters?
Understanding your building’s master insurance is a vital part of buying—and owning—a condo in Massachusetts. It impacts how much HO6 insurance you need and can affect your financial responsibility in the event of a loss.
Lenders require proof of master insurance before approving financing, and your individual coverage is built around what the master policy includes (and excludes). If there are gaps in the master policy—or if the policy carries a high deductible—you’ll want to be prepared with adequate HO6 coverage to avoid unexpected out-of-pocket costs.
FAQ’s
What is master insurance?
Master insurance is a policy held by a condo association that covers the building’s structure and common areas. It protects all unit owners from major shared property losses.
What happens if there’s damage in a common area?
If the damage is covered under the master policy, the condo association’s insurance will typically pay for repairs. However, unit owners may be responsible for a portion of the deductible or non-covered costs.
Does master insurance cover the inside of my condo?
It depends—some master policies only cover the building's shell (“bare walls”), while others also include original interior finishes (“all-in”). You’ll need an HO6 policy to cover anything the master policy doesn’t.
Can I be charged extra if the master policy doesn’t cover everything?
Yes—your condo association may issue a special assessment to cover gaps or large deductibles. Your HO6 policy may help offset this with loss assessment coverage.
Do I still need HO6 insurance if there’s a master policy?
Yes—master insurance only covers shared areas and the building structure. You need an HO6 policy to protect your belongings, interior finishes, and personal liability.
Where can I find information about my building’s master policy?
Your condo association or property management company can provide a copy of the master insurance certificate. This document outlines what’s covered and what’s not.