Short answer
A condominium association’s insurance program is built around the property the association is obligated to insure under its declaration and applicable law. That obligation, the valuation of the buildings, the deductible structure and the coordination with unit-owner policies are the decisions that shape the program.
Master policy structure
The master program typically combines property, general liability, directors and officers, crime and fidelity, umbrella, equipment breakdown and — where exposed — flood and separate wind or named-storm placements. The structure should be evaluated as a coordinated whole, because gaps most often appear between policies rather than inside them.
Association property versus unit-owner property
The dividing line is established by the declaration and, in some states, by statute. Common descriptions include:
- Bare walls — the association generally insures the structure and common elements, with finishes and improvements left to the owner.
- Single entity — the association generally insures the structure plus original fixtures and finishes as built, with owner upgrades left to the owner.
- All-in — the association’s obligation extends further into the unit, often including fixtures and improvements.
These terms are used inconsistently in practice. The governing documents, applicable law and the actual policy language control — not the label. Questions of interpretation should be discussed with the association’s legal counsel.
Property valuation
Insured values should reflect the estimated cost to rebuild, including current code requirements and demand-surge conditions after a regional event. Values that have not been revisited in several years are a frequent finding, and they affect both pricing and how the policy responds. See property insurance.
Deductibles
Condominium programs frequently carry an all-other-perils deductible plus separate wind, hail or named-storm deductibles, sometimes applied per building. A board should know what each represents in dollars and how the association would fund it.
Water damage
Water is the most frequent driver of condominium loss activity: supply lines, water heaters, HVAC condensate, sprinkler systems, roofs and building envelopes. Loss frequency in this category influences deductibles, sublimits and carrier appetite more than many boards expect.
Wind, hail and catastrophe
Coastal and hail-exposed communities face percentage deductibles and, in some markets, layered or shared placements. See wind and hail and flood.
D&O, crime and umbrella
Governance allegations, theft of association funds and severe liability events are addressed by D&O, crime and fidelity and umbrella and excess liability. In condominium associations, the crime limit should account for funds held by the management company.
Equipment breakdown
Elevators, chillers, boilers, booster pumps and switchgear are excluded from standard property forms when they fail internally. See equipment breakdown.
Claims coordination
Condominium losses often involve the association, multiple unit owners and their individual carriers at once. Clear documentation and consistent communication reduce friction. See claims advocacy.
Frequently asked questions
What is a condominium master policy?
It is the insurance program the association carries on the property it is obligated to insure under the declaration and applicable law. What it reaches inside a unit depends on those documents and the policy form.
What is the difference between bare walls, single entity and all-in?
They are informal descriptions of how far the association's insuring obligation extends into a unit. Terminology is used inconsistently across the industry, and the controlling answer comes from the declaration, state law and the policy language — not the label.
Who pays the master policy deductible?
Allocation depends on the governing documents and applicable state law. Some associations adopt a deductible resolution; owners may address the gap through an individual HO-6 policy.
Why do condominium premiums change so much year to year?
Condominium property pricing is sensitive to catastrophe exposure, construction cost inflation, reinsurance cost, water damage loss trends and carrier appetite for habitational risk.
Coverage depends on the specific policy language, endorsements, facts of the loss and applicable law. This page is general information, not legal advice or a statement that coverage applies.
Written and reviewed by The Duncan Group Community Association Practice. Last reviewed September 2026.