What does the HOA master policy cover vs what unit owners need?

An HOA master policy covers the shared parts of your building and community, while your own unit owner policy covers the inside of your unit and your personal belongings. The master policy is paid for through your homeowners association dues. Your individual condo policy is something you buy separately to fill the gap the master policy leaves behind. Knowing exactly where one policy stops and the other begins is the single most important thing a condo or townhome owner in Georgia can understand, because that line decides who pays after a loss.

What the HOA master policy typically covers

The master policy is purchased by the homeowners association to protect property that everyone shares. The exact coverage depends on how the association’s governing documents are written, but it usually includes:

• The building structure: roof, exterior walls, foundation, and framing.
• Common areas such as hallways, lobbies, elevators, stairwells, parking lots, and pools.
• Shared systems like the building’s main plumbing, central heating, and exterior lighting.
• Liability for injuries that happen in common areas, for example a guest who slips on an icy walkway near the clubhouse.

There are two common master policy styles. A “bare walls” policy stops at the unfinished interior surfaces, meaning it does not cover your drywall, flooring, cabinets, or fixtures. An “all-in” or “walls-in” policy reaches further inside and may cover original fixtures and built-in features. The two common master policy styles differ here. A “bare walls” policy stops at the unfinished interior surfaces, meaning it does not cover your drywall, flooring, cabinets, or fixtures. An “all-in” or “walls-in” policy reaches further inside and may cover original fixtures and built-in features. The association’s declaration page and bylaws, or a written summary from the property manager, confirm which style a building uses.

What unit owners need to cover themselves

Your personal condo insurance policy, often called an HO-6 policy, picks up where the master policy ends. It generally handles:

• Interior improvements and betterments: flooring, paint, cabinets, countertops, and upgrades you or a prior owner installed.
• Personal property: furniture, clothing, electronics, and other belongings.
• Personal liability if someone is hurt inside your unit or if you accidentally damage a neighbor’s unit.
• Loss of use, which pays for temporary housing if a covered loss makes your unit unlivable.
• Loss assessment coverage, which helps pay your share of a large bill the association passes on to all owners after a major claim.

A real-world example

Imagine a pipe bursts in an upstairs Marietta condo and water pours into the unit below. The association carries a bare walls master policy with a $10,000 deductible. The master policy repairs the structural framing, but it does not touch the damaged hardwood floors, the kitchen cabinets, or the ruined furniture in the lower unit. The owner of the lower unit files a claim on their own HO-6 policy, which pays roughly $18,000 to replace flooring, cabinets, and belongings. The association then votes to split the $10,000 master deductible among all owners. Because the lower unit owner had loss assessment coverage, their HO-6 policy absorbs their share of that special assessment too. An owner without an HO-6 policy would have paid all of that out of pocket.

Common gaps Georgia condo owners miss

• Assuming the master policy covers their belongings. It almost never does.
• Not buying enough loss assessment coverage to match the master deductible, which can be very high.
• Forgetting flood. Master policies and HO-6 policies usually exclude flood, so owners near rivers or low-lying areas may need flood insurance.
• Carrying a master policy deductible they cannot afford to share. When deductibles climb, an umbrella policy and adequate loss assessment limits matter more.

The cleanest way to avoid a costly surprise is to put your master policy declaration page next to your HO-6 policy and confirm there is no gap between them. We do this comparison for Georgia condo owners every day, matching your unit policy to your specific building’s master coverage so nothing slips through. Request a free coverage review and a licensed advisor will read your master policy alongside your unit policy and confirm whether the two leave a gap.