What's the difference between condo insurance and HOA master policy?

Condo insurance (HO-6) covers your unit's interior, personal belongings, and liability, while the HOA master policy typically covers the building's exterior and common areas.

Condo insurance, often referred to as HO-6 policy, is designed specifically for condominium owners. This type of insurance primarily protects the interior of your unit, which can include fixtures like carpets, walls, and appliances. It's also essential for covering your personal belongings within the unit, such as furniture, electronics, and clothing. Additionally, HO-6 insurance provides liability coverage. This means if someone is injured inside your condo—like if they slip on a wet floor—you could be protected from the costs of medical bills or legal expenses.On the other hand, the HOA (Homeowners Association) master policy is meant to cover the parts of the condo building that are considered common property. This typically includes the exterior of the building, like the roof and walls, as well as common areas shared by all residents, such as hallways, elevators, and pools. The HOA master policy helps ensure that any damage to these general areas of the property is repaired without each individual owner needing separate exterior coverage.

Imagine you own a condo in a building with ten other units. If a storm damages the roof of the building, you don't need to worry about the cost of repairs because the HOA master policy covers exterior damage, including the roof. However, if that same storm causes a leak that damages your sofa or TV inside your condo, that's where your condo insurance comes into play. It helps cover the cost of replacing your damaged personal belongings within your own unit.

It's essential to understand the scope of both your condo insurance and your HOA's master policy to ensure you don't have gaps in coverage. Talk to your insurance agent to confirm that your HO-6 policy covers all your personal needs, and also review your HOA's policy details. Make sure that you're aware of any deductibles or limitations your HOA policy might have and plan your personal insurance accordingly. Having adequate coverage can help you avoid unexpected expenses if damage occurs.