Reviewed by Jon Merwin, licensed insurance agent
Key takeaways
- A small condo association still needs its own master policy. In New Hampshire, RSA 356-B:43 says this applies to small condominiums too.
- The declaration and bylaws decide how much of each unit the master policy covers: bare walls or all-in. Each owner’s HO-6 policy covers the rest.
- Connecticut association? Connecticut law and carriers are different. See Connecticut condo association insurance.
- Standard master policies exclude flood. Associations can look at the NFIP’s Residential Condominium Building Association Policy (RCBAP) or a private flood policy.
- Directors and officers (D&O) and fidelity/crime coverage are worth asking about at every renewal.
Who this page is for
This page is for board members, treasurers and self-managing owners of condo associations with 10 or fewer units. That includes converted Victorians, two- to six-unit brick buildings, small townhouse rows and condexes. In many small associations, the treasurer is also the person who renews the insurance, often without a property manager. This page covers what that person should ask before the renewal is due.
Have two units? Our condex guides cover those in detail: New Hampshire condex insurance and Maine condex insurance. If you are an owner insuring your own unit, start with our New Hampshire condo (HO-6) guide. This page is about the association’s policy.
What a master policy for a small association usually includes
Portsmouth Atlantic Insurance writes commercial insurance only for habitational risks, and a condo association’s master policy is one of them. A typical commercial habitational package for a small association combines:
- Property coverage on the building(s) and common elements. This is usually written at replacement cost. Check the declarations page to see whether coverage is on a replacement cost or actual cash value basis, and whether there is a coinsurance clause or agreed value.
- General liability for injuries or damage arising from the common areas: walkways, stairs, driveways, parking and yards.
- Ordinance or law coverage. This matters a lot in older buildings, because rebuilding to current code can cost more than restoring what was there.
- Equipment breakdown for shared boilers, water heaters and electrical service, where the carrier offers it.
- Loss of assessments, deductible structure and named insureds. Check that the association, the board and the unit owners are named the way the documents require.
What each package includes varies by carrier and by building. Treat the list above as a set of questions to ask, not a promise of what any one policy contains.
Master policy vs. unit owner (HO-6): bare walls or all-in?
The most common mistake in small associations is assuming that someone else is insuring something. The declaration (and sometimes the bylaws) sets the line between the two policies:
- Bare walls: the master policy stops at the unfinished structure. Each owner insures interior walls, flooring, cabinets, fixtures and improvements on their own HO-6.
- Single entity / original specs: the master policy covers the unit as originally built. Owners insure upgrades and betterments.
- All-in: the master policy also covers improvements and betterments installed by owners. Owners still need an HO-6 for belongings, liability, loss assessment and the master deductible.
How to read your documents:
- Find the insurance article in the declaration and copy it word for word. Don’t paraphrase it.
- Check the definition of unit boundaries. It controls who owns what, and so who insures what.
- Read the bylaws for who pays the master deductible after a loss. Some documents assign it to the unit where the loss started. Others treat it as a common expense.
- Compare all of that against the current master policy declarations page, and send each owner a one-page summary so their HO-6 limits match.
Most carriers we work with also write HO-6 unit-owner policies. Progressive and Openly are the exceptions. For a deeper owner-side comparison, see condo insurance vs. homeowners insurance and what an HOA insurance policy covers.
D&O and fidelity/crime: concepts every board should ask about
Small boards are made up of volunteers, and they still make decisions with real consequences: approving repairs, collecting assessments, enforcing rules and hiring contractors.
- Directors and officers (D&O) liability responds to claims that the board made a wrongful decision. It is separate from general liability, which covers bodily injury and property damage. Ask whether D&O is available alongside the package, what it excludes and whether it covers past board members.
- Fidelity / crime coverage protects association funds against theft by someone with access to them, such as a treasurer, a volunteer or a manager. In a small association, one person often controls the reserve account. Ask how the coverage limit compares to the operating and reserve balances, and whether non-compensated volunteers are covered.
We can review whether these coverages are available for your association and how they would be structured. Availability depends on the carrier and the risk.
Older condo stock: what underwriters look at
Many small associations in Portsmouth and the Seacoast are in buildings that were converted from older single-family or multi-family homes. Underwriters typically ask about:
- Roof age and material, and the year of the last update
- Electrical service (knob-and-tube, fuses, panel brand), plumbing material and the heating system
- Fire separation between units, smoke detection and any sprinkler system
- Whether the association has a reserve study and a history of maintaining the building
- Prior losses, especially water damage
Gathering these updates before the renewal makes underwriting go more smoothly. It also helps make sure the replacement cost reflects how the building would actually have to be rebuilt.
Nor’easters, coastal wind and flood
Wind-driven rain, ice dams, fallen trees and storm surge all hit coastal New England. Check how wind and named storms are handled in the master policy deductible. Ask whether there is a separate windstorm or hurricane deductible, and whether it is a flat amount or a percentage.
Flood: NFIP (RCBAP) and private flood
Standard master policies exclude flood. For a condo association, the main National Flood Insurance Program option is the Residential Condominium Building Association Policy (RCBAP), which insures the building and the association’s commonly owned contents. We place NFIP flood through Selective, a Write Your Own carrier. Unit owners can buy their own NFIP or private flood policies for their interiors and belongings, and some also add loss assessment protection.
Private flood can be an alternative or a complement to NFIP coverage, depending on the building. Markets we work with include Flow Flood, Neptune Flood, Beyond Floods, The Flood Insurance Agency, CatCoverage and Aon Edge, subject to availability and underwriting.
Portsmouth and Seacoast New Hampshire associations
New Hampshire condominiums created on or after September 10, 1977, are generally governed by the Condominium Act, RSA 356-B. Its insurance section, RSA 356-B:43, says the condominium instruments, “including those for small condominiums,” must require the association (or the board or managing agent on its behalf) to obtain:
- A master casualty policy affording fire and extended coverage for the full replacement value of the structures in the condominium, or of the structures that make up the common areas. If the association doesn’t carry it, the statute says unit owners share equally in the cost of repairing common areas to the extent a fire and extended coverage policy would have paid. If the damage is limited to one or a few limited common areas, only the owners in those areas share the cost.
- A master liability policy in an amount set by the condominium instruments. It covers the association, the board, any managing agent, their agents and employees, and all unit owners and occupants.
- Other policies the instruments require, such as workers’ compensation, coverage for vehicles the association owns, or specialized coverage for land and improvements the association has rights in.
RSA 356-B:43 also requires written notice to each unit owner when a policy is obtained, changed or terminated. It also says master casualty proceeds go to repair or restore the damaged structure unless the owners vote to terminate the condominium. For a small Seacoast board, that means three practical habits: keep the renewal declarations page on file, send owners a written notice when coverage changes, and keep the property limit tied to current replacement value.
Seacoast-specific exposures include older wood-frame conversions in Portsmouth’s historic neighborhoods, coastal wind in Rye, New Castle and Hampton, and the flood zones along the Piscataqua and the tidal marshes. In New Hampshire, the carriers we work with for habitational and condo coverage include Andover Companies, Vermont Mutual, Safety Insurance, Concord Group and Providence Mutual. All five are regional carriers with long histories in New England. Which one fits depends on the building, its age, its location and the coverage the documents call for.
More local information: our Portsmouth, NH insurance agency and apartment building insurance in New Hampshire, for owners who hold a small building outright rather than as a condo.
Connecticut associations
Connecticut condominiums follow the Common Interest Ownership Act, not New Hampshire’s Condominium Act, and the carrier options are different. See Connecticut condo association insurance for the Connecticut version of this guide.
Renewal checklist for small-association boards
- Current declaration, bylaws and any amendments
- Master policy declarations page and the most recent renewal
- Building updates (roof, electrical, plumbing, heating) with the years they were done
- Flood zone determination and any elevation certificate
- Operating and reserve balances, for sizing fidelity/crime coverage
- Loss history for the past several years
Get a master policy review
Ready to review your association’s coverage? Request a quote online or call (603) 431-4020. Have your declaration, bylaws and current master policy declarations page ready if you can.
Frequently asked questions
Does a small condo association with only a few units need a master policy?
Usually, yes. In New Hampshire, RSA 356-B:43 says the condominium instruments, including those for small condominiums, must require a master casualty policy and a master liability policy. For Connecticut associations, see Connecticut condo association insurance.
What is the difference between bare walls and all-in coverage?
Bare walls means the master policy covers the structure and owners insure interior finishes and improvements. All-in means the master policy also covers improvements and betterments. The declaration decides which applies, and each owner’s HO-6 should be written to match.
Is fidelity or crime coverage required for a condo association?
In New Hampshire, it depends on what the condominium instruments require. Either way, boards should ask how the limit compares to the funds the association holds.
Does the master policy cover flood?
Standard master policies exclude flood. Associations can buy an NFIP Residential Condominium Building Association Policy (RCBAP), which we place through Selective, or look at private flood options where available.
Which carriers do you work with for condo associations in New Hampshire?
In New Hampshire, we work with carriers including Andover Companies, Vermont Mutual, Safety Insurance, Concord Group and Providence Mutual. The right fit depends on the building, its age, its location and what the documents require.