Condos offer the perfect mix of homeownership and convenience. According to the U.S. Census, one in five newly built multi-unit properties is a condominium. But while condo living has its advantages, figuring out how much dwelling coverage you need can be confusing.
Whether you’re a new condo owner or reviewing your current policy, Vargas & Vargas Insurance is here to help you understand what your HOA master policy covers—and what gaps you’ll need to fill with your personal condo insurance.
Types of Condo Master Policies
Before selecting your own coverage, it’s critical to know what the HOA’s master policy insures. The most common types are:
1. Bare Walls Coverage
This policy type covers only the unit’s structure—walls, floors, and ceilings. Everything inside (fixtures, appliances, finishes) is your responsibility.
2. All-Inclusive or Single-Entity Coverage
This broader coverage includes original, built-in elements like cabinetry, lighting, and standard appliances—but often excludes upgrades made by the owner.
⚠️ Even comprehensive HOA policies do not cover your personal property or custom improvements.
Why You Should Review Your HOA’s Master Policy
Ask for a full copy of your building’s master policy and bring it to a licensed insurance agent for review. Look for:
- What’s included (walls, fixtures, built-ins)
- What’s excluded (flooring, finishes, custom work)
- Coverage limits (e.g., a $500,000 maximum per claim)
- Whether there’s a reserve or emergency fund
If the HOA’s coverage is limited, you may need to extend your protection through your personal condo policy.
What Should Your Personal Condo Insurance Include?
Your individual condo (HO-6) policy should be designed to fill in the gaps left by the HOA’s master policy. Key components include:
- Real Property (Interior) Coverage
- Personal Property
- Liability
- Loss of Use
- Medical Payments
- Flood Insurance (optional but important)
Real Property (Interior) Coverage
This protects the permanent interior parts of your unit, including:
- Flooring and carpet
- Built-in cabinets and vanities
- Light fixtures
- Kitchen appliances
💡 Tip: If the HOA has a “bare walls” policy, you’ll need full coverage for all interior elements. If they offer all-inclusive coverage, you may only need protection for your upgrades.
Personal Property Coverage
This covers your belongings—furniture, electronics, clothes, décor, and more. Best practices include:
- Taking a home inventory with an app or spreadsheet
- Choosing replacement cost over actual cash value
- Adding scheduled personal property coverage for high-value items (like jewelry or fine art)
Liability Coverage
This protects you if someone is injured inside your unit or if you’re held responsible for accidental property damage. It also typically includes dog bite liability, but some breeds may be excluded.
📌 Pro tip: Your liability coverage should match your total net worth to protect your assets in case of a lawsuit.
Loss of Use
If your condo becomes uninhabitable due to a covered event (like a fire or major water damage), this coverage helps pay for:
- Hotel stays or temporary rentals
- Meals
- Additional living expenses
Medical Payments
This pays for minor medical expenses if a guest is injured in your condo—regardless of who was at fault.
Don’t Overlook Flood Insurance
It’s a common myth that condo owners—especially those on upper floors—don’t need flood insurance. But here’s the reality:
🚫 Standard condo insurance and HOA master policies do not cover flood damage.
This includes water from:
- Storm surge or overflowing rivers
- Surface water runoff from heavy rain
- Groundwater seepage
- Tidal or flash flooding
🌧 Flood insurance must be purchased separately through the National Flood Insurance Program (NFIP) or a private provider.
Even if you live on a higher floor, flood damage to lower-level infrastructure (like HVAC, electrical, or building-wide plumbing systems) can lead to special assessments—costs you might have to help pay if your building isn’t properly insured.
Additional Considerations
- Mortgage lender requirements
- State condo insurance minimums
- Umbrella insurance for extra liability protection
- Scheduled coverage for valuable personal items
- Assessment coverage to protect against HOA shortfalls
How to Calculate the Right Coverage
Follow these steps to make sure you’re not under- or overinsured:
✅ List all permanent fixtures and upgrades in your unit
✅ Inventory your belongings and estimate replacement value
✅ Total your assets to determine appropriate liability limits
✅ Review the HOA master policy carefully for exclusions
✅ Use a condo insurance calculator—or speak with an agent
Protect Your Condo with Confidence
Your condo is more than a place to live—it’s a major financial investment. At Vargas & Vargas Insurance, we help you understand what coverage you need, what your HOA handles, and how to fill the gaps with smart, affordable protection.
👉 Click below to get a free quote today
📞 Or call 617-298-0655 to speak to one of our experienced agents now.
Frequently Asked Questions
What is real property coverage in condo insurance?
It covers permanent interior fixtures and built-ins. It’s especially important if your HOA has a “bare walls” policy.
Do I need flood insurance if I live in a condo?
Yes, in many cases. Flooding can affect common infrastructure, and damage from external rising water is not covered under your standard condo policy.
How much personal property coverage should I carry?
Start by taking an inventory and estimating replacement cost. Be sure to add coverage for high-value items if needed.
What’s the difference between actual value and replacement value?
Actual value accounts for depreciation; replacement value covers the cost to buy a new item today.
Can I be held liable if the HOA’s policy doesn’t cover enough?
Yes. If damage exceeds the HOA’s limits, unit owners may be assessed to cover the difference. Consider adding loss assessment coverage.
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