The short answer: your HOA's master policy generally covers the building and shared areas, and your condo (HO-6) policy covers what the master policy doesn't, such as your belongings, parts of the interior, your personal liability, and any assessment the HOA passes on to you. Exactly where that line falls depends on your association's governing documents, which is why two condo owners in Thousand Oaks can have very different gaps.

Most owners learn this after a loss, when a claim falls in the gap between the two policies. It is much easier to find the line now. Here is how to read it.

What Does the HOA's Master Policy Typically Cover?

Your HOA dues pay for the master policy, which is written in the association's name. It typically insures the building structure and the common areas, such as hallways, roofs, grounds, and shared amenities, and it usually includes general liability coverage for those shared spaces.

California law sets some baseline expectations. Under Civil Code section 5805, owners of separate interests in a common interest development are generally shielded from individual tort claims over common areas when the association carries general liability coverage of at least $2 million (100 or fewer units) or $3 million (more than 100 units). That protects you from being sued personally for issues in the shared areas. It does not insure anything inside your unit.

What Does Your Condo (HO-6) Policy Cover?

An HO-6 policy covers what the master policy leaves out. Depending on how your association divides responsibility, it can help cover:

• Your personal belongings, such as furniture, clothing, electronics, and valuables, subject to policy limits
• Interior finishes and improvements you are responsible for, such as flooring, cabinets, fixtures, and upgrades
• Personal liability if someone is injured in your unit or you accidentally damage a neighbor's property
• Additional living expenses if a covered loss makes your unit unlivable
• Loss assessment coverage, which may help pay a special assessment the association charges members after a covered loss

Where Exactly Is the Line? It Depends on Three Common Models

Condo associations generally draw the boundary in one of three ways, and your CC&Rs (covenants, conditions, and restrictions) say which one applies to you. The Washington State Office of the Insurance Commissioner describes them this way, and the concepts are the same across states:

• All-in: the master policy covers the structure and interior finishes such as doors, windows, cabinets, paint, trim, fixtures, and floor coverings.
• All-in excluding improvements: the master policy covers original finishes only, so upgrades you made, like swapping laminate countertops for granite, fall to you.
• Bare walls: the master policy covers the building up to the unfinished drywall and subfloor, and everything inside that shell is yours to insure.

A bare-walls association leaves a lot more on your HO-6 policy than an all-in one. Buying the same coverage amount as a neighbor in a different building can leave you underinsured.

Four Gaps Condo Owners Often Miss

The deductible

When the master policy responds to a loss, the association's deductible applies, and an association may pass some or all of it to the owners affected. California's annual disclosure notice says as much: even if a loss is covered, you may still be responsible for all or part of a deductible.

Special assessments

If damage exceeds the master policy's limits, or the master policy does not cover the loss at all, the association can assess owners to make up the difference. Loss assessment coverage on your HO-6 policy may help, but it has its own limit, so check how much it is and what it applies to.

Earthquake and flood

Standard property policies typically don't include earthquake or flood coverage, and the association's policy follows the same pattern unless it has added them. Because California requires associations to disclose any earthquake and flood policies they carry, you can confirm whether your building has either one rather than assume. If it does not, earthquake and flood coverage for your unit are separate decisions.

Liability inside your unit

The master policy's liability coverage covers common areas. If a guest is hurt in your unit, or a leak from your unit damages the one below, your HO-6 liability coverage responds.

How to Find Where Your Line Sits

You do not need to guess. Three documents answer most of the question:

• Your CC&Rs, which state who is responsible for what inside and outside each unit
• The association's annual budget report, which under California Civil Code section 5300 must include a summary of its property, general liability, earthquake, flood, and fidelity policies, with the insurer, policy limit, and deductible for each
• The master policy's certificate of insurance, which your property manager or board can provide

Bring those to an agent and ask a plain question: if a pipe bursts in the unit above mine tomorrow, what does the HOA pay for, what do I pay for, and what does my policy need to cover? An independent agent can read the documents with you and size your HO-6 policy to match.

Not Sure Where Your Hoa’s Coverage Stops?

Understanding where your HOA insurance ends and your personal coverage begins can be confusing. Weeks & Associates Insurance Services in Thousand Oaks can walk you through your HOA documents, help identify your coverage needs, and provide a condo insurance quote tailored to you.

Contact us today at 888.838.5020 to get started and make sure your condo has the coverage it needs.

Frequently Asked Questions

1. Does my HOA insurance cover the inside of my condo?

Sometimes, but only partly. Check your CC&Rs to see what your HOA covers and what your HO-6 policy should cover.

2. Do I need condo insurance if my HOA has a master policy?

Yes. The master policy may not cover your belongings, liability, or interior finishes. Check your loan and HOA requirements.

3. What is loss assessment coverage?

It can help cover your share of an HOA assessment after a covered loss, such as a large deductible or damage exceeding policy limits.

4. How do I get condo insurance in Thousand Oaks?

Contact Weeks & Associates Insurance Services. We’ll review your HOA coverage, identify gaps, and help build the right policy.