HOA glossaryInsurance & operations

What is a master policy?

The association's property and liability insurance covering the common area and, in many condominiums, the buildings themselves.

Also called: Master insurance policy, HO-6

What the master policy covers is determined by the declaration and the policy form together, and the range is wide — from common area only in a typical planned community, to the building structure and original fixtures in a condominium, to bare walls in others.

The gap between the master policy and an owner's individual policy is where uninsured losses live. Owners in condominiums generally carry an HO-6 unit policy to cover the interior, personal property, loss of use, and the master policy deductible where the declaration passes it through.

Deductibles have grown sharply, and a high deductible allocated to owners under the declaration functions as an unbudgeted liability. Whether the association absorbs it or charges it back is a document question with a real financial answer.

Why it matters to a board

Circulate a plain-English summary of what the master policy does and does not cover, annually. It prevents the worst conversation an association has after a loss.

Where the answer lives

Your recorded declaration and bylaws first, then the act that governs associations in your state. Whichever is stricter is the one that binds you.

Related terms

Common areaThe land and improvements owned or controlled by the association for the benefit of all members.Limited common elementCommon property assigned to the exclusive use of one unit or a small group of them, such as a balcony, patio or assigned parking space.Condominium associationAn association governing a community where owners hold title to units and an undivided percentage interest in the common elements.D&O insuranceInsurance covering directors and officers against claims arising from their decisions in governing the association.Fidelity bondCoverage protecting association funds against theft by directors, employees, or the management company handling them.
General information, not legal advice. This entry explains what the term means, not what your association must do about it. Any notice period, cure window, fine cap, vote threshold or deadline comes from your recorded declaration and your state's act — those differ in all fifty states and are amended every session. Updated August 2026. Confirm the current requirements with an attorney licensed in your state before acting.
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