Condo Master Policy vs. HO-6: Who Covers What in Florida
The most expensive insurance mistake Florida condo owners make is assuming the association's master policy covers everything. It does not. Understanding where the master policy stops and your HO-6 policy starts can save you tens of thousands of dollars after a loss.
What Each Policy Covers
Master Policy
Purchased by the Association
- Building structure (roof, exterior walls, foundation)
- Common areas (lobby, hallways, pool, gym, parking garage)
- Elevators, stairwells, and building mechanical systems
- Original unit fixtures (varies by policy type)
- Association-owned equipment and furnishings
- General liability for common areas
- Directors & Officers liability (if included)
HO-6 Policy
Purchased by the Unit Owner
- Personal property (furniture, electronics, clothing)
- Unit improvements and upgrades you made
- Appliances you installed (washer, dryer, etc.)
- Personal liability (injuries inside your unit)
- Loss assessment (your share of special assessments)
- Additional living expenses if displaced
- Master policy deductible (if passed to you)
Bare Walls vs. All-In: Two Types of Master Policies
The type of master policy your association carries determines exactly where the association's coverage stops and your HO-6 coverage needs to begin. This is defined in your association's governing documents (declaration of condominium).
| Coverage Element | Bare Walls (Studs-Out) | All-In (Single Entity) |
|---|---|---|
| Exterior walls & roof | Covered by master | Covered by master |
| Common areas | Covered by master | Covered by master |
| Interior walls & drywall | Unit owner (HO-6) | Covered by master |
| Original flooring | Unit owner (HO-6) | Covered by master |
| Original cabinets & countertops | Unit owner (HO-6) | Covered by master |
| Built-in appliances (original) | Unit owner (HO-6) | Covered by master |
| Unit upgrades & improvements | Unit owner (HO-6) | Unit owner (HO-6) |
| Personal belongings | Unit owner (HO-6) | Unit owner (HO-6) |
The Coverage Gap Trap
If your association has a bare walls policy but you assume it covers your original fixtures, you could face $30,000-$80,000+ in uninsured losses after a fire or water damage event. Always read your declaration of condominium and confirm the master policy type with your association's insurance agent before purchasing your HO-6 policy.
The Master Policy Deductible Problem
Florida condo master policies often carry high deductibles, especially for wind and hurricane damage. When a claim originates in or affects a specific unit, many associations pass the master policy deductible to the responsible unit owner. These deductibles can be devastating if you are not prepared.
Non-Hurricane Deductible
$10,000 - $50,000
Applied to fire, water damage, and other non-wind claims
Hurricane Deductible
$50,000 - $250,000+
Typically 2-5% of the building's total insured value
Flood Deductible
$25,000 - $100,000
Applied to flood claims under the master flood policy
How to protect yourself: Purchase HO-6 loss assessment coverage with limits high enough to cover the master policy's hurricane deductible. If your building has a $200,000 hurricane deductible and 100 units, your share could be $2,000 — but if only 20 units are affected, your share could be $10,000. We recommend loss assessment limits of at least $50,000 for most Florida condo owners.
Real-World Coverage Scenarios
Kitchen Fire in Your Unit
Master Policy Covers:
Covers structural damage to the building (walls, ceiling, floor structure). If all-in policy, also covers original cabinets and countertops.
HO-6 Policy Covers:
Covers your personal property destroyed in the fire, any upgrades you made (granite countertops, custom cabinets), additional living expenses while displaced, and potentially the master policy deductible if passed to you.
Watch Out For:
If bare walls policy: original cabinets, flooring, and fixtures are YOUR responsibility through HO-6.
Hurricane Damages the Building
Master Policy Covers:
Covers roof repair, exterior wall damage, window replacement, common area restoration, and structural repairs.
HO-6 Policy Covers:
Covers water damage to your personal belongings from roof breach, your share of the hurricane deductible special assessment, and additional living expenses if your unit is uninhabitable.
Watch Out For:
Hurricane deductibles are often 2-5% of building value. On a $20M building, that is $400,000-$1,000,000 split among unit owners.
Upstairs Neighbor's Pipe Bursts
Master Policy Covers:
Covers damage to the building structure (subfloor, drywall between units) and common plumbing systems.
HO-6 Policy Covers:
Covers damage to your personal property (furniture, electronics), your flooring and wall finishes, and temporary housing if needed.
Watch Out For:
The responsible unit owner's HO-6 liability coverage may also apply. Without adequate HO-6 coverage, you may need to pursue the neighbor directly.
Frequently Asked Questions
Close Your Coverage Gaps
We review your association's master policy alongside your HO-6 to identify gaps and make sure you are properly covered. No cost for the review.
Related Condo & HOA Guides
Continue learning about Florida condo and HOA insurance
Insurance Requirements
What Florida law requires every condo and HOA board to carry under Statute 718.111(11).
Read GuideD&O Insurance
How Directors & Officers coverage protects board members from personal liability.
Read GuideFlood Insurance
RCBAP vs. private flood options and what condo associations need to know.
Read GuideSpecial Assessment Insurance
How unit owners can protect themselves from unexpected assessment costs.
Read GuideWorkers' Compensation
Why associations need workers' comp even without employees, and how 'if any' policies protect your board.
Read GuideInsurance Guidance Tailored to You
Your needs come first. There is no one size fits all solution for your business or coverage. We tailor insurance to your needs, not someone else's goal.
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