What is the difference between a bare walls and all-in HOA master policy in Georgia?

The difference between a bare walls and an all-in HOA master policy is where the association’s coverage stops and your personal condo coverage must begin. A bare walls master policy covers the building structure but not the interior finishes of your unit, so you are responsible for everything from the studs inward. An all-in, sometimes called all-inclusive, master policy covers the original interior fixtures and finishes too, leaving you a smaller gap to fill. Knowing which one your Georgia association carries is essential to buying the right condo policy.

Your individual condo insurance, often called an HO-6 policy, fills the space the master policy leaves open. With a bare walls master policy, that space is large. With an all-in policy, it is smaller, but it still exists.

Here is what your unit policy typically needs to cover under each type:

• Bare walls: drywall, flooring, cabinets, countertops, fixtures, built-in appliances, and any improvements, plus your belongings and liability.
• All-in: mainly upgrades and additions you made beyond the original construction, plus your belongings and liability.

An example shows why this matters. A pipe bursts and damages your kitchen. Under a bare walls master policy, you are on the hook for the cabinets, countertops, flooring, and drywall, easily $25,000 or more, so your unit policy needs enough dwelling coverage, often called Coverage A, to rebuild that interior. Under an all-in policy, the master policy may cover the original kitchen, and your unit policy mainly handles the granite upgrade you added and your belongings.

Reviewing the master policy’s deductible also matters, because some associations can pass a portion of it to unit owners. Some Georgia associations carry a high master deductible, and the bylaws may pass part of it to the unit owner whose unit was the source of a loss, which is another reason to carry adequate loss assessment coverage.

Two more points for Georgia condo owners: ask your association for the master policy declarations so you know which type applies, and add loss assessment coverage, which protects you if the association bills unit owners for a shortfall after a large claim or a master policy deductible. You can learn more on our condo insurance page. We will read your master policy and set your unit coverage to match the gap exactly. Schedule a free coverage review and we will make sure there are no holes between the two policies.