By Jon Merwin, Founder and CEO, Licensed Insurance Advisor
Key takeaways
- HOA insurance is the policy the association buys, usually called the master policy. It protects what the association owns or must insure, plus the association’s own liability.
- It does not replace your own policy. Your belongings, your personal liability and usually at least part of your unit or house are your responsibility.
- How far the master policy reaches depends on the type of community and the governing documents, not on a single industry rule.
- New Hampshire’s Condominium Act and Connecticut’s Common Interest Ownership Act both set minimum insurance an association must carry.
- Ask for the certificate of insurance and the declaration’s insurance section, then match your own policy to the gaps.
Short answer: an HOA insurance policy is the insurance a homeowners association or condo association carries for the community. It covers the property the association is responsible for, such as common areas and, in many condos, the buildings themselves, and it protects the association against liability claims. It does not cover your personal belongings or your own liability, and it may not cover your unit’s interior at all. Whether you also need a full homeowners policy or a condo (HO-6) policy depends on what your association’s documents say it insures.
We get this question from new buyers more than almost any other, usually right before a closing. As a family-owned independent agency founded in 2005, we compare 40+ carriers and read a lot of association certificates. That work is part of why clients have left us 1,000+ Google reviews and over 2,000 testimonials.
Does the HOA cover my home insurance?
Usually only in part, and sometimes not at all. The answer starts with what kind of community you live in:
| Type of community | What the master policy usually insures | What you usually need |
|---|---|---|
| Single-family homes in a planned community (lots you own outright) | Common land and amenities: roads, a clubhouse, a pool, entry signs, plus association liability | A full homeowners policy (HO-3 or similar) on your house and belongings |
| Townhouses or attached homes | Varies widely. Some associations insure the whole building; others only common areas | Depends on the declaration: an HO-6 or a full homeowners policy |
| Condominium building | The building structure and common elements, sometimes original fixtures inside units | A condo (HO-6) policy for belongings, liability, improvements and gaps |
| Detached site condo (condex) | Often common land only, with the owner insuring the house | Often a homeowners-style policy. See our condex guide |
Two neighbors in the same town can have very different answers. A single-family HOA in Bedford and a condo building in downtown Portsmouth both have an association and dues, but their master policies protect very different things.
What an HOA master policy covers
Most master policies include several parts. The names vary by carrier, but the pieces are similar:
- Property coverage for buildings and common elements the association must insure: roofs, siding, hallways, elevators, a clubhouse or pool house, and similar shared structures.
- General liability for injuries or damage tied to common areas, such as a fall on a shared walkway or at the pool.
- Directors and officers (D&O) liability for board members who are sued over decisions they made for the association.
- Fidelity or crime coverage that protects association funds against theft by someone handling the money.
- Other policies the documents call for, such as flood coverage for buildings in a flood zone, equipment breakdown or an umbrella over the association’s liability.
Master policy types: bare walls, single entity and all-in
For condos, the reach of the property coverage inside your unit usually falls into one of three patterns:
| Master policy type | Inside your unit, the association insures | Your HO-6 needs to cover |
|---|---|---|
| Bare walls | Little or nothing beyond the structure | Interior walls, floors, cabinets, fixtures, plus belongings and liability |
| Single entity (original specifications) | Fixtures and finishes as originally built | Upgrades you or past owners added, plus belongings and liability |
| All-in (all inclusive) | Fixtures, finishes and owner improvements | Belongings, liability, loss assessment and the deductible gap |
Your declaration or bylaws say which pattern applies. In Connecticut, larger associations must spell it out for you, as covered below.
What HOA insurance doesn’t cover
- Your belongings. Furniture, clothing, electronics and anything else you own.
- Your personal liability. Someone hurt inside your unit or house, or damage you cause to a neighbor’s unit.
- Your improvements under a bare walls or single entity policy: the kitchen you redid, new flooring, built-ins.
- Additional living expenses if you have to move out during repairs.
- Your share of a special assessment after a large loss, unless your own policy has loss assessment coverage.
- Flood, unless the association bought a separate flood policy. Standard property policies exclude it. See our flood insurance page.
What New Hampshire law requires of condo associations
New Hampshire’s Condominium Act, RSA 356-B:43, says the condominium instruments must require the association to carry a master casualty policy for the full replacement value of the structures that make up the common areas, and a master liability policy covering the association, its board, its managing agent and the unit owners. It also requires the association to give owners written notice when a policy is obtained, changed or terminated.
The statute adds a point owners often miss: if an association does not carry that master casualty policy, the unit owners share the cost to repair the common areas, to the extent a fire and extended coverage policy would have paid. That is one more reason to read the certificate before you buy. Single-family HOAs that are not condominiums are governed mainly by their own declaration and bylaws, so the documents matter even more there. Our New Hampshire condo insurance guide covers the owner’s side.
What Connecticut law requires
Connecticut’s Common Interest Ownership Act covers condos and planned communities. Section 47-255 requires the association to maintain property insurance on the common elements, commercial general liability insurance and fidelity insurance, and flood insurance when a condominium is in a federal flood hazard area and the owners vote for it.
For buildings where units share walls or are stacked, the association’s policy generally has to include the units and owner improvements, unless the declaration limits that or the board decides not to insure improvements after giving owners notice and a chance to comment. In communities with more than twelve units that don’t insure all improvements, the association must keep a schedule of the standard fixtures and finishes it insures, give it to owners at least once a year, and include it in resale certificates. That schedule is exactly what you need to set your HO-6 coverage.
Section 47-255 also says the insurer can’t cancel or refuse to renew the association’s policy until 60 days after it mails notice to the association, each owner and each lender that was issued a certificate. For Connecticut associations, see our Connecticut condo association insurance page.
The two gaps that surprise owners most
The master policy deductible
Association deductibles are often far higher than a personal policy’s. Depending on the declaration, a share of that deductible may be charged back to the owner whose unit was involved, or spread across all owners as a common expense. Connecticut’s statute treats repair costs beyond the insurance and reserves, including those caused by a deductible, as a common expense. Ask the board or manager how your community handles it, then make sure your own policy’s loss assessment limit fits.
Loss assessment
When a loss is bigger than the master policy pays, or the association owes a large deductible, the board can assess every owner. Loss assessment coverage on your HO-6 or homeowners policy can help pay your share of a covered assessment. Limits vary, and some carriers offer higher limits by endorsement.
How to read your HOA’s insurance before you buy or renew
- Ask the manager for the current certificate of insurance and the declarations page of the master policy.
- Find the insurance section of the declaration or bylaws. It says what the association must insure and what owners must insure.
- Note the property deductible, any separate wind or named-storm deductible, and whether flood is included.
- In Connecticut, ask for the schedule of standard fixtures and improvements if the association has more than twelve units.
- Ask how deductibles are allocated and whether there have been recent special assessments.
- Send it all to us. We’ll match your own policy to what the master policy leaves out.
For association boards
We also place master policies for smaller condo associations and apartment-style communities. We compare carriers such as Vermont Mutual, Andover Companies and Providence Mutual, plus Concord Group in New Hampshire and Massachusetts. Our commercial work is limited to these habitational accounts and a few add-ons such as D&O and cyber coverage. See insurance for small condo associations for details.
Thinking about your personal liability above your own policy? Our umbrella insurance page explains how an umbrella sits over your home and auto. For the side-by-side of the two owner policies, read condo insurance vs. homeowners insurance.
Buying in an HOA or condo, or not sure your policy lines up with the master policy? Send us the certificate and we’ll review it with you. Ring (603) 431-4020 or write to insure@portsmouthatlanticins.com. Request a quote. There’s no obligation to buy. About 90% of our quotes go out within 24 hours.
An association’s master policy and your own policy should fit together without gaps. We can help you line them up.
Frequently asked questions
What is an HOA insurance policy?
It’s the master policy the homeowners or condo association buys. It covers property the association must insure, such as common areas and often the buildings, plus the association’s liability.
Does HOA insurance cover my home?
Sometimes in part. In a single-family HOA it usually covers only common areas, so you need a full homeowners policy. In a condo it often covers the building, and you need an HO-6 for the rest.
Does HOA insurance cover the inside of my unit?
It depends on the master policy type. Bare walls policies cover little inside; single entity policies cover original fixtures; all-in policies also cover improvements. Your belongings are never covered.
Do I still need my own insurance if my HOA has a master policy?
Yes. The master policy doesn’t cover your belongings, your personal liability or your share of a large assessment, and lenders usually require your own policy.
What is loss assessment coverage?
It’s coverage on your own policy that can help pay your share when the association assesses owners after a covered loss or a large master policy deductible.
How do I find out what my HOA policy covers?
Ask the manager for the certificate of insurance and read the insurance section of your declaration. Send them to us and we’ll help you match your coverage.
Related reading
- What Happens If You Don’t Have Homeowners Insurance?
- Editorial & Accuracy Policy
- Homeowners Insurance NH & CT
Sources
- New Hampshire RSA 356-B:43, Condominium Act insurance requirements
- Connecticut General Statutes Section 47-255, Common Interest Ownership Act insurance requirements
Already a client and just need to update something? Head to the Service Center or send a policy change request.
This guide is general information, not legal advice. What a master policy covers depends on your community’s declaration, bylaws and the policy itself. Coverage is subject to each carrier’s terms and underwriting.