What does a Georgia HOA master policy actually cover?

A Georgia HOA master policy covers the shared parts of a community and the association’s liability, but it does not cover what happens inside individual units. Understanding the line between the two is essential for both the association and its owners.

The master policy typically provides:

• Property coverage for common areas: The clubhouse, pool, lobbies, hallways, roofs, and exterior structures the association owns and maintains.
• General liability: Pays if someone is injured in a common area, such as a slip at the pool, and sues the association.
• Directors and officers liability: Protects board members against claims tied to their decisions running the association.

What the master policy covers inside a building depends on its type. A “bare walls” policy covers the structure up to the unit’s framing and leaves everything inside to the owner. An “all-in” policy includes original fixtures and built-ins. Either way, owners still need their own condo insurance for personal belongings, interior improvements, liability, and loss assessments.

Example: a pipe bursts in a Georgia condo. The master policy handles the building structure and shared plumbing, but the owner’s damaged flooring, cabinets, and furniture, totaling $18,000, fall to the owner’s condo policy. If the association charges all owners a special assessment to cover its deductible, an owner’s loss assessment coverage helps pay that share.

Board members should know which master-policy type their association carries, since it determines where owner responsibility begins. To clarify the gap between your master policy and what each owner needs, request a free coverage review.