Master Policy vs. Unit Owner’s Policy: Breaking Down the Difference

Understanding the ins and outs of condo insurance is essential for anyone living in or considering buying a condominium in Florida. Residents usually have questions about the difference between a master policy and a unit owner’s policy. Knowing how these two types of coverage work together can help protect your investment and avoid costly surprises.

What Is a Master Policy?

A master policy is an insurance policy purchased by the condominium association or HOA. This policy typically covers the building’s common areas, exterior structure, and shared amenities, such as hallways, roofs, elevators, and pools. In Florida, master policies may vary in scope, but they generally fall into two categories:

• Bare walls-in: Covers only the basic structure and common areas, leaving unit interiors to the owner.
• All-in: Extends coverage to include fixtures, installations, and sometimes even built-in appliances within each unit, but not personal belongings.

The cost of the master policy is usually included in your HOA dues. However, it’s important to review your association’s policy to understand exactly what is and isn’t covered.

What Is a Unit Owner’s Policy?

A unit owner’s policy, often called an HO-6 policy, is purchased by the individual condo owner. This policy is designed to fill the gaps left by the master policy. It typically covers:

• Personal property (furniture, clothing, electronics)
• Interior improvements (flooring, cabinets, fixtures)
• Personal liability for accidents inside your unit
• Loss of use if your unit becomes uninhabitable due to a covered loss
• Assessment coverage for certain losses assessed by the HOA

Condo owners should pay close attention to their association’s master policy to determine how much coverage they need for their own unit.

Why Both Policies Matter

Having both a master policy and a unit owner’s policy ensures comprehensive protection. The master policy safeguards the building and shared spaces, while your personal policy protects your belongings and the interior of your unit. Without both, you could face significant out-of-pocket expenses after a loss.

Contact Us

The team at The Turner Advisor Group specializes in helping Florida condo owners and HOA boards navigate the complexities of condo insurance. We review master policies, recommend appropriate unit owner’s coverage, and answer your questions so you can feel confident in your protection.

Contact us today to review your current policy or explore more coverage options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.