One roof, many owners, one master policy.
The master policy for condominium and townhome associations: building coverage set to your CC&Rs, common areas, association liability, directors and officers, fidelity and crime, umbrella, ordinance or law and equipment breakdown, lined up with each owner's HO-6.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Where the association's policy ends and the owner's begins
A condominium master policy starts with the CC&Rs. They say whether the association insures bare walls, the original finishes as a single entity, or everything inside the unit as all-in, and that one line decides what each owner must carry on an HO-6. I read the insurance article before I quote anything, because a master policy that stops at the drywall while the governing documents promise all-in leaves every owner short at claim time.
Liability follows the same logic. California's Davis-Stirling Act gives individual owners protection from common-area tort suits only when the association carries general liability of at least two million dollars for 100 or fewer separate interests, or three million dollars for more than 100. The board's own decisions are a separate exposure, so directors and officers coverage sits beside the general liability, and an umbrella stacks above both.
Money handling is the third leg. Since January 1, 2019, associations must carry crime, employee dishonesty or fidelity bond coverage of at least reserves plus three months of assessments, extended to any management company. Add equipment breakdown for elevators and boilers, ordinance or law for older buildings, and a water damage deductible the board understands, and the program is complete. I quote it with the budget report summary in mind.
- Master propertyBuilding and common areas, bare walls, single entity or all-in per the CC&Rs.
- Association liabilityCommon-area injuries; at least two million dollars under Civil Code §5805.
- Directors and officersBoard decisions, election disputes and discrimination claims.
- Fidelity and crimeReserves plus three months of assessments, Civil Code §5806.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Documents: CC&Rs insurance article and the current declarations.
- Buildings: units, stories, year built, construction and roof age.
- Systems: plumbing, electrical and elevator updates, sprinklers and alarms.
- Common areas: pool, gym, clubhouse, garage, gates and any commercial space.
- Finances: reserves, assessments, budget and management company.
- History: five years of loss runs, pending litigation and special assessments.
Condo association insurance, answered
How much liability does a California condo association need?
Civil Code §5805 protects individual owners from common-area tort suits only when the association carries general liability of at least two million dollars for 100 or fewer separate interests, or three million dollars for more than 100. Many boards go above that with an umbrella.
Is a fidelity bond required?
Yes. Civil Code §5806 requires crime, employee dishonesty or fidelity bond coverage, or an equivalent, of at least the association's reserves plus three months of total assessments, with computer fraud and funds transfer fraud protection, and it must extend to the management company. Self-insurance does not count.
What goes in the annual budget report?
Under Civil Code §5300 the budget report, sent 30 to 90 days before the fiscal year ends, must summarize the property, general liability, earthquake, flood and fidelity policies: insurer, type, limits and deductibles, with the statutory notice telling owners to consult their own agent.
What happens if the master policy is cancelled or not renewed?
Civil Code §5810 requires individual notice to members as soon as reasonably practicable when a listed policy lapses, is cancelled or is materially changed, and immediate notice when a nonrenewal means replacement coverage will not be in place by the lapse date. I work on replacement well before that point.
Does the master policy cover earthquake?
Usually not unless the board buys it separately. Earthquake is optional for associations in California, and the budget report must say whether you carry it. I quote it alongside the master policy so the board can decide with numbers.
Who pays the master policy deductible after a unit leak?
It depends on the CC&Rs and the policy's deductible wording. Many associations pass the deductible to the responsible unit owner, whose HO-6 loss assessment coverage may respond, subject to the policy terms.
Do you offer condo association insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 49 states and Washington, DC and places policies there directly. In Florida, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
Send the CC&Rs. I'll build the program.
Email me the governing documents, the current declarations and the budget. I'll compare the master policy against the insurance article and quote the liability, D&O, crime and umbrella as one package.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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(877) 711-4545Answered 24/7 · CA License #4348151
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