What Does Condo Insurance Cover?

Condo insurance confuses people because the coverage is split between two policies: the building's master policy and your own. Knowing exactly where one ends and the other begins is the whole game, and it is where condo owners most often get caught.

The two policies

Your condo association carries a **master policy** that covers the building structure and common areas, the roof, the hallways, the exterior. Your own condo policy, often called an HO-6, covers everything the master policy does not: typically your unit's interior, your belongings, your liability, and improvements you have made.

The "walls-in" question

One line decides everything. Master policies vary in how far inward they reach. Some cover everything up to the bare walls and studs, leaving you responsible for flooring, cabinets, fixtures, and finishes. Others stop sooner. The gap between where the master policy stops and where your policy starts is exactly where an underinsured owner gets a nasty surprise after a loss.

Loss assessment coverage

There is one more piece worth knowing. If the building takes a large loss that exceeds the master policy, the association can bill every owner a share, called a **special assessment**. **Loss assessment coverage** on your condo policy helps pay your portion. Many owners do not know whether they have it or how much.

Find the gap before a claim does

Condo coverage gaps are invisible until something breaks. Hand your condo policy to MyPolicyShield and it will tell you exactly what it covers, where the walls-in line falls, and whether you carry loss assessment coverage.

The gap between you and the master policy stays invisible until a claim finds it.