The basics: What is an HOA or condo master policy?
The master policy is the association’s insurance policy. It’s paid for out of association dues and is designed to protect the common property and shared elements of the community. In a typical Florida condo, the master policy covers:
- The building’s structure (roof, exterior walls, foundation)
- Common areas (lobbies, hallways, pools, clubhouses)
- Association-owned property (furniture, equipment)
- Liability for injuries or accidents in common areas
If a hurricane damages the roof or a guest slips in the lobby, the master policy is what pays for repairs or legal costs. The specifics of what’s covered—and what isn’t—depend on the policy type and the association’s governing documents.
Types of master policy coverage: All-in, bare-walls, and special entity
Not all master policies are created equal. In Florida, you’ll typically see one of three approaches:
- All-in (single entity): A label you may hear in other states, where the master policy covers items inside units. In Florida this does not apply: the statute requires the association's policy to exclude floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets and countertops, and window treatments.
- Bare-walls: Covers only the building’s structure and essential systems (wiring, plumbing, insulation). Everything inside the unit’s walls is the owner’s responsibility.
- Special entity: Covers all property inside units except for owner-installed upgrades or modifications.
In Florida, the coverage split is set by statute (Section 718.111(11), Florida Statutes) rather than chosen by the association — one nuance being that drywall as originally installed is the association's responsibility, while the paint or wallpaper on it is the owner's. Boards and owners should review the declaration and the insurance policy itself to avoid surprises after a loss.
What does an HO-6 policy cover?
An HO-6 policy is the standard “condo insurance” for individual unit owners. Florida law does not require unit owners to carry an HO-6 policy, but your declaration may, and if you have a mortgage, your lender almost certainly does. This policy typically covers:
- Personal property (furniture, clothing, electronics)
- Interior elements not covered by the master policy (flooring, cabinetry, fixtures)
- Personal liability (injuries or damage you cause to others)
- Loss of use (temporary living expenses if your unit is uninhabitable)
- Loss assessment (your share of certain association deductibles or uninsured losses)
If a pipe bursts inside your unit and damages your hardwood floors, your HO-6 policy generally pays for the flooring, because Florida law makes floor coverings the unit owner's insurance responsibility, not the association's.
Where the gap lies: What neither policy covers
Even with both policies in place, there are areas where neither the master policy nor the HO-6 will pay. Common gaps include:
- Flood damage (requires separate flood insurance)
- Earthquake damage (rare in Florida, but not covered by standard policies)
- Maintenance-related losses (wear and tear, mold from neglect)
- Upgrades or improvements not reported to the association or insurer
Both boards and owners should review their policies annually and consult with a licensed insurance agent to identify and address these gaps.
How governing documents define the boundaries
The association’s declaration, bylaws, and rules are just as important as the insurance policies themselves. These documents define:
- What the association is responsible for insuring
- What each owner must insure individually
- How deductibles are allocated after a loss
If there’s a dispute after a claim, these documents are the first place insurers and attorneys look. Boards should keep these documents up to date and make them easily accessible to all owners.
New Florida laws: What’s changed for 2025
Recent changes to Florida law have made insurance requirements stricter for both associations and owners. Associations must now maintain comprehensive property and liability insurance for common areas, and all unit owners are required to carry HO-6 policies. These changes aim to close coverage gaps and reduce disputes after major losses.
Associations are also required to post insurance policies and other key documents on their websites, making it easier for owners to understand what’s covered and what isn’t.
Real-world scenarios: Who pays for what?
Let’s break down a few common situations:
Scenario 1: Water leak from a common pipe floods two units.
The master policy covers the pipe repair and damage to common elements. Damage inside the units (flooring, drywall, personal property) may fall to the owners’ HO-6 policies, depending on the master policy’s scope and the governing documents.
Scenario 2: Hurricane damages the roof and several units.
The master policy pays for roof repairs and structural damage. Owners’ HO-6 policies cover personal property and any interior elements not included in the master policy.
Scenario 3: Guest slips in the lobby and sues.
The master policy’s liability coverage responds. If a guest is injured inside a unit, the owner’s HO-6 liability coverage applies.
Scenario 4: Owner installs new hardwood floors, not reported to the association.
If a covered loss damages the new floors, the HO-6 policy may only pay up to the original flooring’s value unless the owner updated their policy to reflect the upgrade.
Scenario 5: Flood from a hurricane storm surge.
Neither the master policy nor the HO-6 covers flood damage. Both the association and owners need separate flood insurance policies for this risk.
How to avoid costly surprises
- Boards: Review your master policy and governing documents annually. Communicate clearly with owners about what’s covered and what isn’t. Make sure your website is up to date with all required documents.
- Owners: Don’t assume the association’s policy covers your unit’s interior or personal property. Work with a licensed insurance agent to tailor your HO-6 policy to your needs, including loss assessment and any upgrades you’ve made.
