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What Is a Master Policy and What Does It Cover in a Condo?

Last updated October 25, 2026

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The short answer

The Role of a Condo Association's Insurance

The condominium association holds the master policy to manage risk for the entire property. This insurance is funded through your monthly condo fees or special assessments. It exists to handle damage to shared structures, which prevents disputes over who is responsible for major repairs. Without it, the financial burden for fixing a damaged roof or flooded basement could fall directly on the owners.

In the event of a covered loss, the association's policy pays for repairs to the common property. This can include rebuilding a fire-damaged lobby or replacing a collapsed carport. The policy's purpose is to maintain the building's structural integrity and shared systems for all residents. It is a foundational layer of protection for the community as a whole.

What the Master Policy Typically Covers

Coverage generally focuses on the building's original construction and common areas. This includes structural components like the foundation, load-bearing walls, and the roof deck. Shared amenities such as swimming pools, fitness centers, and clubhouses are also usually included. The policy may cover plumbing and electrical systems that serve multiple units or the entire building.

  • The building's roof, exterior walls, and foundation.
  • Common hallways, stairwells, lobbies, and elevators.
  • Shared plumbing, electrical, and HVAC systems in walls or common areas.
  • Amenities like pools, gyms, and community rooms.
  • Original building components as defined in the condo declaration.
  • Liability for accidents in common areas.

What It Usually Does Not Cover

The master policy does not cover anything inside the boundaries of your individual unit. Your personal furniture, electronics, clothing, and appliances are your own responsibility. Any upgrades you made, like custom cabinets, new flooring, or upgraded light fixtures, are also excluded. This is why you need a separate HO-6 policy for your personal property and unit improvements.

Damage that starts within your unit and only affects your unit is typically not the association's concern. If your toilet overflows and ruins your bathroom floor, that is generally your responsibility. The master policy may only get involved if the water damages a neighboring unit or a common structural element. Always check your condo bylaws for the exact definitions of unit boundaries.

How Water Damage Scenarios Are Handled

Water damage in a condo often involves determining the source. If a pipe bursts inside a common wall, damaging multiple units, the master policy may cover the pipe repair and structural drying. The association would likely coordinate the initial water extraction and drying for the affected common areas. However, repairs to the drywall and flooring inside your specific unit would fall to your own insurance.

  • Pipe leak in a shared wall: Master policy may cover the pipe and common area drying.
  • Overflow from your washing machine: Your HO-6 policy covers your unit's cleanup.
  • Roof leak during a storm: Master policy covers roof repair and any common area water damage.
  • AC drain line overflow from a unit above: The source unit's owner is typically responsible.
  • Sewer backup in a main line: Master policy may cover the line repair and common area cleanup.
  • Flood from a nearby river: Usually requires separate flood insurance for both the building and units.

Steps to Take After Water Damage in Your Condo

Your first step is to stop the water source if it is safe to do so. Turn off the main water valve for your unit if the leak is internal. Immediately notify your condo association's management about the incident, as they need to assess any impact on common property. Take photos and document all damage for both the association and your own insurance claim.

Contact your own insurance provider to report the damage to your personal property and unit. The association will handle claims under the master policy for covered common areas. Policies vary, and your insurer decides what is covered. You may need to hire local water damage pros for water damage inspection and drying within your unit. Keep records of all communications with the association, your insurer, and any contractors.

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Frequently asked questions

Does the master policy cover my drywall or flooring?

It depends on your condo declaration. In a "bare walls" policy, it likely does not cover the drywall inside your unit. In an "all-in" policy, it might cover standard building finishes. Your own HO-6 policy is meant to cover your interior surfaces and any upgrades you have made. Always check your specific governing documents.

Who do I call first for a water leak in my ceiling?

First, notify your condo association management immediately, as the leak may originate from a common pipe or a unit above. Acting quickly is important to prevent mold. Then, contact your own insurance provider. Policies vary, and your insurer decides what is covered. The association will determine if the master policy applies to the source of the leak.

What if my neighbor's negligence causes damage to my unit?

Your neighbor's homeowner insurance policy is typically responsible for damages originating from their unit. You would file a claim against their policy for repairs to your property. Your own HO-6 policy may also cover the damage initially and then seek reimbursement from their insurer. The condo master policy generally does not cover damage between individual units.

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