How Does an HOA or Condo Association Master Policy Claim Work?
The association's master policy covers the common elements — roofs, exterior walls, hallways, roads, amenities — and depending on whether it is written bare walls, single entity, or all-in, it may also cover fixtures inside units. The board files the claim, the master deductible applies to the association, and any shortfall typically becomes a special assessment on owners, which is why scoping the claim fully matters. Call 516-410-0164 for a free claim review.
Three Master Policy Types, Three Different Answers
A bare-walls policy covers the structure and common elements but nothing inside the unit, leaving owners responsible for fixtures, flooring, cabinets, and finishes. A single-entity form covers original fixtures as built but not owner upgrades. An all-in form covers fixtures including improvements.
Boards and owners argue about this constantly after a loss. The declaration and bylaws, read alongside the master policy, are what settle it — and both should be reviewed before the adjuster completes an estimate.
Why Underpaid Master Claims Hit Owners
When a master claim settles low, the association still has to complete the repair. The gap becomes a special assessment, and owners pay it. A full scope of the common elements is therefore a direct financial protection for every unit owner.
Key Takeaways
- Master policies come in bare-walls, single-entity, and all-in forms
- The governing documents define common vs. unit responsibility
- Underpayment usually converts into a special assessment on owners
- Owners may have loss assessment coverage on their own policies
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