Association-level property insurance covering condominium buildings and common elements according to the policy and governing documents.
A condo master policy is the condominium association’s project-level property insurance covering buildings, common elements, and any unit components included by the policy and governing documents.
The association is the named insured. Individual owners share the benefit of the project coverage but do not control it as though it were their own HO-6 policy.
The mortgaged unit depends on the condition and insurability of the entire project. A major uninsured building loss, inadequate limit, or large deductible can affect the association and every unit owner, including a borrower whose own unit was not the source of the damage.
Lenders therefore review more than whether a policy exists. Depending on the loan and project, the review can involve the insured property, replacement-cost basis, covered causes of loss, deductibles, endorsements, policy dates, carrier information, and whether unit interiors or improvements are included.
The master policy does not automatically replace the borrower’s HO-6 Policy. The coverage boundary comes from the condo declaration or bylaws together with the insurance contract, not from the monthly dues amount or a shorthand label.
Borrowers usually encounter the master policy during Condo Review. The lender or project reviewer may obtain a certificate, declarations, policy forms, endorsements, deductible details, and replacement-cost information from the association, management company, or insurance agent.
An insurance certificate can summarize coverage, but it may not answer every underwriting question. If the certificate does not show the interior boundary, deductible structure, or required endorsement, the lender may request additional policy pages or a written explanation.
At renewal, the association can change carriers, limits, or deductibles. That means project insurance can matter again during servicing, refinance, or a later unit sale.
| Informal boundary label | What the master policy may cover | Likely HO-6 focus |
|---|---|---|
| Bare walls | Building and common elements, with little or no unit-interior property | Interior fixtures, finishes, improvements, and owner property |
| Single entity or original specifications | Building plus some original unit fixtures or finishes | Betterments, alterations, gaps, and owner property |
| All-in or all-inclusive | Building and broad unit fixtures, improvements, or betterments | Personal property, liability, loss of use, deductibles, and remaining gaps |
These labels are not perfectly standardized. The actual policy and governing documents control. A borrower should not assume that “all-in” means every personal risk is insured or that “bare walls” has the same boundary in every project.
A project deductible is paid before the master policy responds. The association’s governing documents and loss circumstances affect whether that cost stays with the association, is allocated across owners, or is charged to a particular unit.
An HO-6 policy may help with certain unit-level or loss-assessment exposure, but only within its terms, limits, deductible, and covered causes of loss. The presence of HO-6 coverage does not automatically cure an unacceptable master-policy deductible for mortgage eligibility.
A buyer applies for a mortgage in a 60-unit building. The association provides a master policy covering the structure and common elements, but the documents show that interior improvements are outside the association’s coverage and that the policy has a per-unit deductible.
The lender requires an HO-6 policy with enough building-property coverage to address the unit interior and the applicable deductible under the loan requirements. The master policy protects the project-level property; the HO-6 policy fills specified owner-level needs.
Condo master policy differs from Condo Insurance because condo insurance is the full split-coverage system, while the master policy is the association’s portion.
It differs from an HO-6 Policy because HO-6 belongs to the unit owner and addresses personal coverage and unit-property needs not fully handled by the master policy.
It differs from Walls-In Coverage because walls-in is an informal boundary concept, not the master policy itself.
It also differs from Condo Review. Condo review is the broader mortgage eligibility process; project insurance is one major input.