What does a Georgia HOA master policy actually cover?

A Georgia HOA master policy protects the shared parts of a community and the association itself. It does not cover what happens inside individual units. That line between association responsibility and owner responsibility determines what each party pays for when something goes wrong.

What does a Georgia HOA master policy cover?

The master policy typically includes three components:

• Property coverage applies to common areas: the clubhouse, pool, lobbies, hallways, exterior walls, roofs, and any structure the association owns and maintains.
• General liability coverage pays if someone is injured in a common area and sues the association. A slip and fall at the pool or an injury in a shared parking lot would fall here.
• Directors and officers liability protects board members against claims tied to decisions they made running the association. Budget disputes, enforcement actions, or contract choices can all generate claims.

What is the difference between bare-walls and all-in HOA master policies?

What the master policy covers inside each unit depends on the policy type the association carries. A bare-walls policy covers the structure up to the unit framing. Everything inward, flooring, cabinets, counters, fixtures, and interior walls, belongs to the owner. An all-in policy (sometimes called all-inclusive) extends coverage to original built-in fixtures and finishes, so the association bears responsibility for the kitchen and bathroom finishes that were in place when the building was originally constructed. Improvements an owner adds later are still the owner's responsibility under either type.

Knowing which type the association carries sets the floor for what a unit owner's condo insurance must pick up. The master policy's declarations page will identify which form applies.

How does the HOA master policy deductible affect individual unit owners?

The deductible on the master policy introduces a second exposure. Georgia HOA master policy deductibles can run from $5,000 to $25,000 or more on larger communities. When a covered loss triggers the master policy, the association often passes its deductible back to all unit owners through a special assessment. A unit owner's condo policy can include loss assessment coverage, which pays the owner's share of that assessment up to the policy limit.

For example, a supply pipe inside a Georgia condo building bursts. The master policy handles the building's shared plumbing and structural damage. The individual unit owner's flooring, cabinets, and personal property, totaling around $18,000, fall outside the master policy and require the owner's own condo coverage to pay.

What should Georgia condo board members review annually?

Board members should confirm which master policy type their association carries and review the deductible level annually. Those two numbers tell every owner exactly where their personal condo policy needs to start.

For example, an HOA in Cumming switches from a bare-walls to an all-in master policy. Unit owners who were carrying high dwelling limits on their personal condo policies may now be able to adjust those limits, while loss assessment coverage becomes more important because the master policy's higher coverage triggers a larger deductible exposure.

How can unit owners close the gap left by the HOA master policy?

For a closer look at the gap between what your association's master policy covers and what each unit owner needs, request a free coverage review. Learn more about condo insurance options in Georgia.