Condominium association master property insurance
Insures the condominium's buildings and, per the master coverage form, part of each unit interior, and the form decides where the master stops and the owner's HO-6 begins.
Why Coverwatch
- Markets
- Community-association programs plus surplus lines for older, coastal, and water-loss-heavy condominium buildings a standard carrier will not touch, quoted on the form the declaration requires.
- Competition
- 60+ carriers compared on the coverage form, insured value, and deductible structure, not just the premium a board has to defend to owners at the budget meeting.
- Lender paperwork
- We complete the Fannie Mae and Freddie Mac condo project questionnaires and confirm the deductible clears the cap, so a unit closing never stalls on warrantability.
For hoa
- What it covers
- The condominium's buildings and common elements, plus as much of each unit interior as the master coverage form reaches.
- What it doesn't
- Whatever the form leaves inside the unit, the owner's belongings and upgrades, and the master deductible, all landing on the HO-6.
Trusted by 60+ carrier partners
What does condominium association property insurance cover?
Condominium association property insurance is the master policy insuring the buildings and common elements, plus part of each unit interior depending on the coverage form. Bare-walls stops at the studs, single-entity adds original fixtures, all-in extends to built-in improvements. It excludes owner belongings, upgrades, and the master deductible, which fall to the HO-6.
Why the master-policy form controls condo property coverage
A condominium is stacked ownership: owners share walls, floors, and ceilings, so the master property policy and each owner's HO-6 divide a single building between them.
The form draws the seam, not the deed
Bare-walls, single-entity, and all-in each cut the building in a different place.
The deductible passes through to owners
The master deductible is funded from reserves or a special assessment.
Water moves between units and drives the rate
A riser or supply line fails on an upper floor and the loss travels down through several units before anyone shuts it off.
How we get you covered
We take commercial property for hoa to 60+ markets, build it to fit your contracts, and keep your certificates compliant.
Read your risk
We map what could actually go wrong in your operation, where a claim would come from, and who would bring it.
Shop 60+ markets
We take your risk to the carriers that know your class and make them compete on price and terms.
Build the endorsements
We add the endorsement wording that decides whether the policy responds to a claim, beyond the base form.
Keep you compliant
We handle the COIs, additional-insured certs, and renewals, so you are never the one chasing paperwork.
What's covered, and what isn't
In the policy
Unit interior per the coverage form (bare-walls, single-entity, or all-in)
Bare-walls, or studs-out, insures the shell and common elements but stops at the unfinished interior.
Buildings and common elements at replacement cost
The association's buildings, roofs, exterior walls, and shared elements such as clubhouses, elevators, garages, and pools.
Loss assessment funding the master gap
When a loss exceeds the master limit or the master deductible is passed to owners, the association levies a special assessment.
Increased cost of a code-compliant rebuild
Ordinance-or-law coverage pays the added cost of rebuilding to current code after a covered loss.
Loss of assessment income and debris removal
After a covered loss the policy replaces the assessment income the association loses while common elements are unusable.
Not in the policy
The unit owner's belongings and upgrades
Personal property, and any improvement an owner made after the developer turned the unit over, sit outside even an all-in master policy.
Covered by each owner's HO-6 policy
The master deductible passed to owners
When the board special-assesses to fund the master deductible or a loss above the master limit, an owner's share is not paid by the master policy.
Covered by loss assessment coverage on the HO-6
Board decisions and covenant disputes
A suit over a rejected sale, a covenant-enforcement fight, or a wrongful board decision is a management-liability claim, not physical damage to the building.
Covered by Directors & Officers
Theft of association funds and employee dishonesty
A manager or board member diverting reserves or dues is a fidelity loss, not property damage.
Covered by Crime & Fidelity
Injury to residents and guests on common areas
A slip on a common walkway or a pool injury is a bodily-injury claim, not damage to the building, so the master property policy will not pay it.
Covered by General Liability
Earthquake and flood
Standard property forms exclude shake and rising water.
Covered by Earthquake / flood policy
Claims commercial property pays
The same loss lands in a different place depending on the coverage form, the master deductible, and the age of the building. These are the property claims condominium associations actually face, with the typical cost to repair and settle each.
Water loss migrating through stacked units
A riser or supply line fails on an upper floor and water travels down through several units before it is shut off.
$50K–$1M+
Fire spreading through a shared building
A fire moves through a shared attic or party wall and damages multiple units and common elements.
$250K–$5M+
Special assessment for the master deductible
A covered loss triggers a large per-unit master deductible, and the board special-assesses owners to fund it.
$25K–$500K+
Ordinance-or-law rebuild gap on an older building
A covered fire damages an older mid-rise, and the city requires the rebuild to meet current electrical, fire, and accessibility codes.
$100K–$3M+
Ranges are typical repair and settlement bands for these claim types, not a quote. Actual exposure depends on the coverage form, construction, building age, insured value, and the master deductible.
What hoa buyers are required to carry
The limits contracts and statutes set for this line, and what moves your premium and terms.
- Fannie Mae / Freddie Mac
- 100% replacement cost, deductible ≤ $50,000
- Lender condo questionnaire
- Form 1076 / Freddie 476
- FHA / VA project approval
- 100% RC + walls-in HO-6
- Florida (Ch. 718)
- RC appraisal every 36 months
Per Lender Letter LL-2026-03, effective for loans applied for on or after July 1, 2026, the master policy must insure 100% of insurable replacement cost, with the single-occurrence deductible capped at $50,000 per unit. A shortfall makes units non-warrantable and blocks conforming financing.
Warrantability runs through the condominium project questionnaire (Fannie Form 1076, Freddie Form 476), which asks for the coverage form, insured value, deductible, and fidelity and flood coverage. A gap or ineligible answer stalls the unit closing until the association corrects the master policy.
FHA and VA project approval require hazard, liability, and (on 20+ units) fidelity coverage, and owners must hold walls-in HO-6 policies where the master is bare-walls. Without approval, buyers cannot use FHA or VA financing in the building.
Florida condominium associations must base the master property policy on replacement cost determined by an independent appraisal at least every 36 months, and insure the property as originally installed per the plans and specifications, under Statute 718.111(11).
- Coverage form and insured value
- Replacement cost of all buildings and common elements is the primary rating base, and the bare-walls, single-entity.
- Water-loss frequency and loss history
- Multi-year loss runs set the rate and the deductible, and shared supply lines and risers make water the highest-frequency condominium claim.
- Construction, roof, and building age
- Frame, joisted masonry, and fire-resistive construction rate very differently.
- Wind and catastrophe exposure
- Coastal and high-wind condominiums face a percentage named-storm deductible instead of a flat one, so the insured value drives the out-of-pocket share.
Endorsements that close the gaps
The base form is the start. These add-ons are where the policy gets built to fit hoa.
Ordinance or law coverage
Splits into three parts: loss to the undamaged portion a code officer condemns (Coverage A), demolition (Coverage B).
Agreed value
Waives the coinsurance clause when the carrier and association agree the insured value up front, removing the coinsurance-penalty risk on a partial loss.
Loss assessment (master-side coordination)
Confirms how the master limit and deductible pass through to owners, so the board can tell owners exactly what HO-6 loss-assessment limit covers a master…
Guaranteed or extended replacement cost
Pays to rebuild even when actual cost overshoots the stated limit, either without a ceiling (guaranteed) or up to a set percentage above it (extended).
Equipment breakdown
Covers sudden mechanical or electrical failure of boilers, elevators, central HVAC, and pumps, which standard property forms exclude.
By the numbers
The lender caps, coverage-form rules, and Florida statutes that surface when a condominium association gets its master policy quoted or answers a lender's project questionnaire.
- Fannie Mae master-deductible cap
- $50,000 per occurrence, per unit
- Florida replacement-cost appraisal
- Independent appraisal every 36 months
- Florida SIRS trigger
- 3+ stories, SIRS every 10 years
- Master coverage forms
- Bare-walls, single-entity, or all-in
- HO-6 loss-assessment default
- Often $1,000; buy up to master deductible
Lender Letter LL-2026-03, effective for loans applied for on or after July 1, 2026, sets a maximum master-property deductible of $50,000 per occurrence, per unit, and requires 100% of insurable replacement cost. A shortfall makes units non-warrantable.
Florida condominium associations must base the master property policy on replacement cost determined by an independent appraisal, updated at least every 36 months, and insure the property as originally installed per the plans and specifications.
Under SB 4-D, a Structural Integrity Reserve Study is required for any condominium or cooperative building three or more stories in height, refreshed every 10 years, alongside milestone structural inspections. Carriers weigh both at renewal.
The three master forms set how far the property policy reaches into each unit. Bare-walls stops at the studs; single-entity adds original fixtures; all-in includes built-in improvements. The form must match the declaration to avoid a claim dispute.
A standard unit-owner HO-6 includes only a small loss-assessment default, frequently around $1,000, well below a modern per-unit master deductible. Owners can raise it to $50,000 or more cheaply.
Common questions
about commercial property for hoa insurance
They are the two ends of the master coverage-form spectrum. Bare-walls, or studs-out, insures the shell and common elements but stops at the unfinished interior, leaving drywall, flooring, and fixtures to the owner's HO-6. All-in extends to fixtures as originally installed and built-in improvements, so the HO-6 covers only belongings and upgrades. Single-entity sits between. The form must match the declaration and state condominium act, or a stacked-unit claim lands in the gap.
The association does, from reserves or a special assessment billed to owners. On condominium forms the deductible is often stated per unit, so a water loss damaging several units multiplies it. Each owner's assessed share falls to the loss-assessment grant on the HO-6, which carries only a small default, frequently around $1,000. Fannie Mae caps the per-unit deductible at $50,000 for loans applied for on or after July 1, 2026.
Yes, in almost every case. Even the broadest all-in master policy stops at the owner's belongings, post-turnover upgrades, and personal liability, and under a bare-walls form the HO-6 insures all interior finishes from the studs in. The HO-6 also carries loss-assessment coverage, which pays the owner's share when the association special-assesses for a master deductible or over-limit loss. FHA and VA project approval require walls-in HO-6 policies where the master is bare-walls.
The condominium project questionnaire, Fannie Form 1076 or Freddie Form 476, confirms a unit is warrantable before a conforming loan funds. It verifies the master insures 100% of insurable replacement cost, that the single-occurrence deductible stays at or under $50,000 per unit under Lender Letter LL-2026-03, that ordinance-or-law Coverage A and C are present, and that fidelity is carried above 20 units and flood in a FEMA zone. Any answer outside those makes the project non-warrantable.
It does not rewrite the property form but changes what carriers see at underwriting. Passed after the Surfside collapse, SB 4-D requires a milestone structural inspection for buildings three stories or taller and a Structural Integrity Reserve Study, under Statutes 553.899 and 718.112. Statute 718.111(11) separately bases the master on a replacement-cost appraisal every 36 months. Carriers now weigh milestone and SIRS status heavily; deferred work is a reason to raise the deductible or non-renew.
It is a coverage on the unit owner's HO-6 that pays the owner's share when the association levies a special assessment after a covered loss, such as one exceeding the master limit or the deductible passed to owners. It is the designed bridge to the owner, because the master does not pay an owner's assessed share directly. A standard HO-6 carries only a small default, frequently around $1,000, but owners can raise it to $50,000 or more cheaply.
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