Read two documents: the association’s CC&Rs, which say who is responsible for what, and the master policy’s summary, which says what it actually insures. If the master policy is bare walls, your cabinets, flooring, fixtures and built-ins are yours to insure. If it is all-in, the original installations are covered by the association but your upgrades may not be. In every case you need personal property, personal liability, loss of use, and loss assessment coverage for the special assessment that follows a large claim.
What does the HOA master policy cover?
A master policy is a commercial package on the association’s own property and liability. Typically it includes:
- The building structureRoof, exterior walls, framing, foundations and common systems, at some level of interior finish depending on the form.
- Common areasLobbies, hallways, elevators, pools, garages, landscaping and recreation facilities.
- General liabilityInjury and damage in the common areas, which is what protects the association and, indirectly, the owners.
- Directors and officersClaims against the board for its decisions. California Civil Code section 5805 ties an owner’s protection from tort claims to the association carrying general liability of at least $2 million for developments of 100 or fewer separate interests, or $3 million above that.
- Fidelity or crimeTheft of association funds, usually required where a management company handles money.
- Often not earthquake or floodBoth are separate purchases, and many California associations decline earthquake coverage. That decision lands on the owners.
How association master programs are placed.
Bare walls, single entity and all-in
Three descriptions of where the master policy stops. They are not legal terms of art, and the actual policy language controls, but every managing agent uses them.
- Bare walls-inThe association insures the structure, and coverage stops at the unfinished interior surfaces. Drywall finishes, flooring, cabinets, counters, plumbing fixtures, appliances and built-ins are the owner’s. This puts the most on your HO-6.
- Single entity (original specifications)The association insures the unit interior as originally built, including standard-grade fixtures and finishes, but not the owner’s upgrades or improvements. Your marble counters over the builder’s laminate are yours.
- All-in (all-inclusive)The association insures the unit interior including fixtures and, on some forms, improvements. The owner still needs personal property, liability, loss of use and loss assessment.
Note that none of the three covers your belongings, your liability or a hotel while the building dries out. Even an all-in association leaves an owner needing a real HO-6.
How do I find out which one my association has?
Three places to look, in this order:
- The CC&Rs, which contain the insurance article and the maintenance responsibility provisions. This is the governing document and the one your carrier will want if there is ever a dispute.
- The annual disclosure. California associations are required to distribute an annual budget report to members that includes a summary of the association’s insurance policies — carrier, type, limits and deductibles. Keep the most recent one.
- The certificate of insurance, which your managing agent will issue on request and which your lender will need at purchase or refinance.
Then bring them to whoever writes your HO-6. Setting a unit owner’s dwelling limit without knowing whether the master policy is bare walls or all-in is guessing, and it is how condo owners end up either doubling up or badly short.
What an HO-6 covers
- Dwelling (Coverage A)The interior of your unit to the extent the master policy does not cover it, including improvements and betterments. On a bare-walls association this limit needs to be substantial.
- Personal propertyFurniture, clothing, electronics and everything else, with sublimits on jewelry, art and collectibles unless scheduled. Scheduling valuables.
- Personal liabilityInjury to a guest inside your unit, and damage you cause to other units — the overflowing tub that reaches three floors is the classic condo claim.
- Loss of useSomewhere to live while the unit is repaired, which in a large building can take a long time.
- Loss assessmentYour share of an assessment the association levies after a covered loss, including its deductible.
- Water backupSewer and drain backup, usually an endorsement and usually worth it in a multi-unit building.
How I write condo HO-6 policies in California.
Loss assessment: the coverage owners forget
When the association suffers a loss that exceeds its coverage, or simply has to pay its deductible, it can assess the owners. Loss assessment coverage on your HO-6 responds to your share of that assessment when it arises from a covered cause of loss.
Two things to check. First, the limit: policies often include a modest default amount that made sense decades ago, and it can usually be increased for very little. Second, the treatment of the master policy deductible specifically — many policies handle an assessment for the association’s deductible under a separate, smaller sublimit, and some require an endorsement.
Ask your manager what the master policy deductible is. If a building of forty units carries a large deductible, that number divided by forty is the assessment you want covered.
The master policy deductible and who pays it
Master policy deductibles have risen sharply, and in many California buildings they are now large enough that a single water loss inside one unit never reaches the master policy at all. What happens next is governed by the CC&Rs: some associations pass the deductible to the owner whose unit the loss originated in, some assess all owners, and some absorb it.
Read that provision before you need it, and size your loss assessment limit and your HO-6 dwelling limit with it in mind. This is also why the water backup endorsement and a realistic Coverage A matter more in a building with a high master deductible.
Earthquake, water and the gaps between the two policies
The places where owners get caught are almost always the same:
- No earthquake anywhere. If the association declined earthquake coverage, the building is uninsured for shake damage and owners can be assessed for repairs. An owner can buy earthquake coverage on the unit and loss assessment for earthquake separately. How earthquake coverage works.
- Upgrades on a single-entity building. Improvements you or a previous owner made are yours, and they are usually the expensive part of the interior.
- A Coverage A limit set at purchase and never revisited after a renovation.
- Renting the unit out without telling the carrier, which changes the form entirely. Landlord coverage, or short-term rental coverage if you list it.
- No umbrella above a liability limit that has not moved since the unit was bought. Personal umbrella.
What to do this year
- Get the annual insurance summary from your manager and file it with your policy.
- Find out whether the master policy is bare walls, single entity or all-in, and what its deductible is.
- Check your Coverage A against what it would cost to rebuild your interior, including anything you have upgraded.
- Raise loss assessment to something proportional to the master deductible divided by the number of units.
- Add water backup if it is not already on the policy.
- Ask whether the association carries earthquake, and decide deliberately if it does not.
Common questions
What does an HOA master policy cover in California?
The building structure, common areas, the association’s general liability, directors and officers, and usually fidelity coverage. How far into your unit it reaches depends on whether it is written bare walls, single entity or all-in.
What is the difference between bare walls and all-in coverage?
Bare walls stops at the unfinished interior surfaces, leaving flooring, cabinets, fixtures and built-ins to the owner. All-in includes the unit’s interior fixtures, and sometimes improvements. Single entity sits between them, covering original specifications but not owner upgrades.
Do I still need condo insurance if the HOA has a master policy?
Yes. No master policy covers your belongings, your personal liability, your living expenses while the unit is repaired, or your share of a special assessment. Those are what an HO-6 is for.
What is loss assessment coverage?
Coverage on your HO-6 for your share of an assessment the association levies after a covered loss, including its deductible. Default limits are often small and can usually be increased inexpensively.
Who pays the master policy deductible?
It depends on the CC&Rs. Some associations charge it to the owner whose unit the loss originated in, some assess all owners, and some absorb it. Read the provision before a claim, not after.
Does the master policy cover earthquake?
Frequently not. Many California associations decline earthquake coverage, which means shake damage to the building is uninsured and can be assessed to owners. Ask your board, and look at earthquake loss assessment coverage if the answer is no.
Sources
- California Civil Code section 5300 (annual budget report)
- California Civil Code section 5805 (association liability insurance)
General information about California condominium and association insurance as of September 2026, not legal advice. Your CC&Rs and the policies actually issued control; read them before relying on any general description. Coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.