What Does Your Condo Insurance "Really" Cover? (Hint: It’s Probably Not What You Think)


Carlos Vargas |Jan 04 2026 10:00

Are You Assuming Your Condo’s Master Policy Covers Everything?

Most condo owners believe the association’s master insurance policy will take care of any damages to their unit. But what if you discovered that leaks, pipe bursts, or damage to your walls aren’t covered—and that it’s up to you to pay for the repairs?

Why Are So Many Condo Owners Caught Off Guard When Disaster Strikes?

Because they don’t fully understand the limits of the master policy—or their own. That gap in understanding can leave you thousands of dollars out of pocket.

In this article, you’ll learn exactly what your condo’s master policy doesn’t cover, what an HO6 policy is, and how to make sure you’re not financially vulnerable. Let’s walk through what you need to know to ensure your investment—and everything in it—is truly protected.

What the Condo Association Master Policy Doesn’t Cover

The master policy covers common areas and the building structure—not your personal belongings or interior unit finishes.

A condo association's master insurance policy is there to protect the building and shared spaces—think roof, hallways, and exterior walls. But it stops at your front door. Everything inside your unit is your responsibility.

  • Floors, walls, and ceilings
  • Cabinets, countertops, and fixtures
  • Plumbing and electrical systems within your unit

Without the right personal policy, damage to any of these areas could fall entirely on you.

What Is an HO6 Policy and Why Do You Need It?

An HO6 policy is designed specifically for condo owners to fill the coverage gaps left by the master policy.

This “condominium unit owner” policy includes three core areas:

  1. Interior dwelling coverage(Section A)
  2. Personal property protection(your belongings)
  3. Personal liability insurance(if someone sues you after an incident in your unit)

Most HO6 policies automatically include $5,000 in interior dwelling coverage—but that’s often not enough. Especially when you factor in potential damage from water leaks, storms, or structural issues in neighboring units.

Not All HO6 Policies Are the Same: Why You Need “Special” Form Coverage

Basic HO6 policies won’t protect you from water damage caused by roof or plumbing leaks.

If your policy only includes “basic” form coverage, you’re at risk. These plans don’t pay out for common issues like:

  • Water damage from leaking roofs or windows
  • Pipe bursts in a neighbor’s unit affecting your home

To truly protect yourself, you need to upgrade to a "special form" HO6 policy, which does include coverage for these events. Without it, you could be left footing the entire bill for damages outside your control.

Understand the Master Policy Deductible—Before It’s Too Late

You could be denied coverage if the cost of damage doesn’t exceed your condo association’s master policy deductible.

Let’s say your building’s master policy has a $10,000 deductible. A pipe bursts in the unit above yours, causing $9,000 in damage to your ceiling and flooring. Because the damage doesn’t meet the master deductible, you get nothing from the association's insurance.

That’s why it’s critical to:

  • Review your condo’s master policy deductible
  • Coordinate your HO6 coverage to match or exceed that amount

Some policies even have a “per unit” deductible —for example, $25,000 per claim. If that’s the case, you should ensure your HO6 covers that full amount, especially in larger associations where higher deductibles are used to reduce group premiums.

If You're in a Smaller Condo Association, Your Input Matters Even More

In smaller associations, you may help determine how the master policy is structured.

In a three-unit condo, for instance, only two other owners decide whether to carry a high or low deductible. Either way, you still need to understand what’s not covered and coordinate your HO6 policy accordingly.

Final Thought: Know What Isn’t Covered

It's not just about what your insurance covers—it's about knowing what it doesn't.

Whether you're in a high-rise or a converted triple-decker, the gaps between your master policy and your HO6 can cost you thousands if you're not proactive.

Take Action Now

Are you confident your HO6 policy is enough to cover your true risk?

If you’re unsure—or if it’s been more than a year since your last review—now is the time to act. Your next step: Read our guide on How to Compare Condo Insurance Policies Effectively so you can feel confident your home is fully protected from the unexpected.

Or better yet, speak to one of our licensed experts who can walk you through your policy line by line—and help you upgrade to the right coverage.