Short answer: As a Los Angeles condo owner, you're insured by two policies that have to fit together: the HOA's master policy, which usually covers the building's structure and common areas, and your own condo policy (an HO-6), which covers what the master policy doesn't. That typically means your belongings, the interior of your unit (often called improvements and betterments, depending on what your HOA's documents say), your personal liability, loss of use if you have to move out, and loss assessment if the HOA charges owners for a deductible or uninsured loss. California law requires every HOA to send owners an annual summary of its insurance, including each policy's limit and deductible (Civil Code §5300). Read that summary and your CC&Rs first, then set your HO-6 limits to fill the gaps. Earthquake damage isn't covered by standard policies, and HOA master policies often don't include it, so decide on condo earthquake coverage separately.
This guide is for owners of condos and townhomes in HOAs across Los Angeles County. It's general information; your HOA's governing documents and your policies' wording control.
How the two policies divide the work
Every association draws the line between "the HOA's part" and "your part" in its CC&Rs. There are two common approaches, and many documents fall in between:
- Bare walls. The master policy covers the structure up to the unpainted walls, floors and ceilings. Your HO-6 must cover everything inside: flooring, cabinets, fixtures, built-in appliances, interior walls and paint.
- Original specifications (sometimes called single entity). The master policy covers the unit as originally built. Your HO-6 covers upgrades you or prior owners added, plus your belongings.
The difference can be tens of thousands of dollars in a kitchen or bathroom. Ask your HOA's manager which approach your documents use and get it in writing. For more, see the HOA master policy vs. a condo HO-6 and what insurance an HOA needs.
The HOA's annual insurance summary
Every California HOA must send owners an annual summary of its property, general liability, earthquake, flood and fidelity insurance, listing the insurer, the policy limit and the deductible for each (Civil Code §5300(b)(9)). The required notice warns that the association's policies may not cover your unit's contents or improvements and that you may be responsible for part of a deductible. See the HOA annual insurance disclosure.
Use the summary to answer five questions:
- Does the master policy cover the building at replacement cost?
- What's the property deductible, and is there a separate wildfire or water deductible?
- Does the HOA carry earthquake coverage, and with what deductible?
- Does it carry flood coverage?
- What does the CC&R say about who pays the deductible when a loss starts in a unit?
The coverages in your HO-6
| Coverage | What it does | How to set it |
|---|---|---|
| Building property (Coverage A) | Interior finishes, fixtures and improvements the master policy doesn't cover | Based on your CC&Rs and the cost to redo your interior |
| Personal property (Coverage C) | Furniture, clothing, electronics and other belongings | A home inventory helps; schedule jewelry, art and watches separately |
| Loss of use (Coverage D) | Extra living costs if the unit can't be lived in after a covered loss | Long enough for a building-wide repair, which can take months |
| Personal liability (Coverage E) | Injuries or damage you cause, including water damage to a neighbor's unit | Higher limits, often with an umbrella, if you have assets to protect |
| Loss assessment | Your share of a special assessment for a covered loss or a master policy deductible | Match it to the HOA's largest deductible you could be charged |
Loss assessment: the coverage condo owners overlook
When a covered loss hits the building and the HOA's deductible is large, the association may pass it to owners as a special assessment. Loss assessment coverage on your HO-6 can help pay your share, up to its limit and subject to the policy's terms. Many policies include a low default amount, so ask about raising it to fit the HOA's deductibles. Some policies limit loss assessment coverage for earthquake assessments, so check that separately.
Water damage: the most common condo claim
In a building where units share walls, floors and plumbing, a leak in one unit can damage several. Who pays depends on where the leak started, your CC&Rs and both owners' policies. Practical steps:
- Know where your unit's water shutoff is.
- Replace old supply lines on toilets, sinks and washers.
- Consider a leak detector under sinks and near the water heater.
- If you rent your unit out, require the tenant to carry renters insurance. See California renters insurance and landlord requirements.
Sudden and accidental water damage is often covered, but slow leaks, mold from long-term moisture and flooding usually aren't. See does homeowners insurance cover burst pipes? and sewer backup.
Earthquake coverage for condo owners
Standard condo policies exclude earthquake damage. Your insurer must offer earthquake coverage when the policy is issued and, if you decline, offer it again every other year (Insurance Code §10081). A condo earthquake policy can cover your unit's interior, your belongings and loss of use, and some options include loss assessment for earthquake-related HOA assessments. Whether the HOA itself carries earthquake coverage matters a lot. If it doesn't, a damaged building may need to be repaired through owner assessments. See should an HOA buy earthquake insurance?, is earthquake insurance worth it in Los Angeles? and CEA vs. private earthquake insurance.
Wildfire areas and the FAIR Plan
If your HOA's master policy has moved to the California FAIR Plan, the building may have fire coverage but not liability or other perils, and the association may buy separate coverage to fill the gaps. Ask the board what's in place. For your own unit, the FAIR Plan can also be an option when standard HO-6 insurers decline, usually paired with a difference-in-conditions policy. See what a FAIR Plan is and buying home insurance in Los Angeles after the 2025 fires.
Step by step: insuring your LA condo
Step 1: Get the documents
Ask the HOA or management company for the CC&Rs' insurance section, the latest annual insurance summary and the master policy's declarations page.
Step 2: Find the line between the HOA and you
Determine whether your documents use bare walls, original specifications or something in between, and which interior items are yours to insure.
Step 3: Estimate your interior rebuild cost
Add up what it would cost to replace flooring, cabinets, counters, fixtures, built-ins and any upgrades at today's prices.
Step 4: Make a home inventory
Record your belongings room by room and store the video off-site. See our home inventory guide.
Step 5: Set liability and loss of use
Choose a liability limit that fits what you have to protect, and a loss-of-use limit long enough for a building-wide repair.
Step 6: Match loss assessment to the HOA's deductibles
Look at the master policy's deductibles and the CC&R rules on deductibles, and set loss assessment accordingly.
Step 7: Decide on earthquake coverage
Read the HOA's earthquake disclosure, then compare condo earthquake options with and without loss assessment.
Step 8: Compare quotes line by line
Compare Coverage A, C, D and E limits, loss assessment, deductibles, water and sewer backup endorsements and exclusions.
Step 9: Send proof to your lender and HOA
Your lender will want the declarations page. Some HOAs require proof of owners' HO-6 coverage.
Step 10: Review every year
Re-check the HOA summary each year, because master policy deductibles and coverage can change at the association's renewal.
If you rent out your condo
An HO-6 written for an owner-occupied unit may not fit when you rent it out. Tell your insurer, and ask about a condo policy designed for rental units, with landlord liability and loss of rents. See the California landlord insurance rules and liability guide.
Questions to ask before you buy an HO-6
- Does my HOA use bare walls, original specifications or something in between, and can I get that in writing?
- What are the master policy's deductibles for fire, water and, if any, earthquake?
- Does the CC&R make the owner of the unit where a loss starts pay the deductible?
- How much loss assessment coverage does the quote include, and can it be raised?
- Does the policy cover improvements a prior owner made?
- Is water or sewer backup included, or is it an endorsement?
- How long will loss of use pay if the whole building needs repair?
- Is earthquake loss assessment available, and is it separate from regular loss assessment?
Key terms
- Master policy: the HOA's policy for the building and common areas.
- Improvements and betterments: upgrades inside a unit, such as new flooring or cabinets.
- Loss assessment: coverage for your share of a special assessment the HOA charges owners.
- CC&Rs: the covenants, conditions and restrictions that set out who insures what.
- Special assessment: a one-time charge to owners, often to cover a loss or deductible.
- Walls-in coverage: coverage for the interior of your unit, from the walls in.
Related state tables and guides
- Condo insurance
- HOA insurance in Los Angeles
- How to file and win a home insurance claim in California
- Homeowners non-renewal notice rules by state
- State insurance rules hub
Frequently asked questions
What does an HO-6 policy cover?
Generally the parts of your unit the HOA's master policy doesn't cover, your belongings, your personal liability, loss of use and, if included, loss assessment. Exactly what you need depends on your HOA's CC&Rs.
Does my HOA have to tell me what insurance it carries?
Yes. California HOAs must send owners an annual summary of their property, liability, earthquake, flood and fidelity insurance, with each insurer, limit and deductible (Civil Code §5300).
What is loss assessment coverage?
Coverage on your HO-6 that can help pay your share of a special assessment the HOA charges owners after a covered loss or for a master policy deductible, up to its limit.
Does condo insurance cover earthquakes?
Not standard policies. Your insurer must offer earthquake coverage, and condo earthquake policies can cover your unit's interior, belongings and loss of use, sometimes with loss assessment.
Who pays if water from my unit damages my neighbor's unit?
It depends on where the leak started, your CC&Rs and both policies. Your HO-6 liability coverage may respond if you're responsible. Report it to your insurer and the HOA right away.
Do I need an HO-6 if the HOA has a master policy?
In most cases, yes. The master policy usually doesn't cover your belongings, your liability or, depending on the CC&Rs, your interior, and lenders typically require proof of coverage.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. Not legal, tax or financial advice, and not a coverage determination. Coverage depends on policy language and underwriting.