WHAT DOES MASTERINSURANCE COVER?
BARE WALLS, SINGLE ENTITY, OR ALL-IN — THE ANSWER CHANGES EVERYTHING.
THE MASTER POLICY COVERS THE BUILDING — BUT HOW MUCH OF THE BUILDING?
Every association master property policy draws a line between what the association insures and what the unit owner must insure through their HO-6. That line is defined by one of three coverage approaches. Bare walls coverage insures only the building structure as originally constructed — studs, drywall, roof, foundation. Single entity adds original fixtures and installations — cabinets, countertops, flooring, and appliances as originally installed by the developer. All-in coverage extends to all improvements, including those made by unit owners after purchase.
The coverage approach is typically specified in the governing documents and directly affects what every unit owner needs on their HO-6 policy. Under bare walls, the owner must insure everything inside the studs. Under all-in, the owner only needs personal property and liability coverage. Kelly Insurance Group reviews the governing documents alongside the master property policy to confirm the coverage boundary matches what the documents require and that unit owners understand their HO-6 responsibility.
WHAT DOES MASTER INSURANCE COVER? — ANSWERED.
WHAT DOES BARE WALLS COVERAGE INCLUDE?
Only the building structure as originally constructed — studs, drywall, roof, foundation, and basic building systems. Everything inside the walls including cabinets, flooring, and fixtures is the unit owner's responsibility under their HO-6.
WHAT DOES SINGLE ENTITY COVERAGE ADD?
Original fixtures and installations as built by the developer — cabinets, countertops, flooring, appliances, and plumbing fixtures as originally installed. Owner upgrades and improvements after purchase are still the owner's HO-6 responsibility.
WHAT DOES ALL-IN COVERAGE INCLUDE?
The building structure plus all improvements, including those made by unit owners. This provides the broadest master policy coverage and reduces what owners need on their HO-6 to personal property and liability only.
HOW DOES THE COVERAGE BOUNDARY AFFECT HO-6 REQUIREMENTS?
Under bare walls, owners need extensive HO-6 coverage for interior build-out. Under all-in, owners need less. The association should communicate the coverage boundary clearly so owners carry appropriate HO-6 limits.
WHERE IS THE COVERAGE BOUNDARY SPECIFIED?
The governing documents — CC&Rs and bylaws — typically specify which approach the association must carry. The master property policy must match what the documents require. Mismatches create coverage gaps.
CAN THE ASSOCIATION CHANGE THE COVERAGE BOUNDARY?
Changing from bare walls to single entity or all-in typically requires a governing document amendment, which may need a membership vote. The premium impact and owner HO-6 implications should be evaluated before any change.
CONFIRM YOUR COVERAGE BOUNDARY MATCHES YOUR DOCUMENTS.
Kelly Insurance Group reviews the governing documents alongside the master policy to confirm the boundary is correct and owners understand their HO-6 responsibility. Since 1881.
The availability of coverage and eligibility for coverage can depend on numerous factors. We cannot guarantee that all customers, individuals, and businesses looking for coverage will be successful in these efforts when contacting our team. All policy coverages and terms need to be fully reviewed by the respective consumer to ensure the coverage asked for is what is specifically being quoted or provided by any insurance policy. Insurance Policies, Coverage Changes, and their terms and conditions are not bound or altered until written confirmation is provided by one of our licensed team members or underwriters. This page does not offer legal advice, legal opinions, or policy interpretations. Rather, this page is meant as a resource to help provide customers and insurance consumers with additional considerations that may help in their insurance buying or pursuit of insurance information. Kelly Insurance Group does not employ or direct attorneys.
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Disclaimer: Coverage availability and eligibility may depend on underwriting review, carrier guidelines, policy terms, state requirements, business operations, risk characteristics, and other information provided during the application or quoting process. Kelly Insurance Group cannot guarantee that every individual, customer, organization, or business seeking coverage will qualify for, receive, or successfully place insurance coverage. All policy coverages, exclusions, conditions, limits, endorsements, and terms should be carefully reviewed by the consumer, insured, or applicant to confirm that the coverage requested is the coverage being quoted, offered, or provided. Insurance coverage, policy changes, endorsements, cancellations, and other policy terms are not bound, changed, confirmed, or altered unless and until written confirmation is provided by a licensed Kelly Insurance Group team member, the applicable insurance carrier, or an authorized underwriter. This page is provided for general informational purposes only and does not provide legal advice, legal opinions, insurance coverage opinions, or policy interpretations.