The Master Policy That Holds the Building Together.
Protecting the building, the board, and every unit owner
Condominium associations insure something no homeowners association does: the building itself. Because each unit owner holds title only to the interior of their unit, the land, the roof and exterior, the hallways, elevators, and shared systems are common elements owned collectively — and the association must insure that structure through a master policy. That single fact drives everything about a condo association's coverage, from how far the master policy reaches into each unit to the limits lenders demand before a unit can be bought or sold. Insuring a condo association well means getting the master policy, the board's protection, and the reserves all structured correctly. (If your community is a planned development where owners insure their own homes, see our HOA insurance page instead.)
Properly structured coverage protects the building, the board, and the financial interests of every owner.
Why the Master Policy Is the Whole Game
A landlord or homeowners policy cannot express the way a condominium is owned, and getting the master policy structured wrong is the most common and most expensive mistake an association makes. The master property policy comes in three variants, and the association's recorded declaration — not the insurance certificate — dictates which one applies:
Bare Walls-In — Insures the structure to the unfinished drywall and studs, leaving all interior finishes, fixtures, and upgrades to each owner's HO-6 unit policy.
Single Entity / Original Specifications — Insures the structure plus the standard interior finishes as originally built, leaving owner upgrades, personal property, and liability to the HO-6.
All-In / All-Inclusive — Insures the structure plus interior finishes and owner upgrades, leaving mainly contents, liability, and loss assessment to the HO-6.
Get the variant wrong and you create gaps or overlaps between the master policy and every owner's unit policy — the exact fault line that turns a burst pipe into a fight over who pays. Matching the master policy to the declaration, and helping owners scope their HO-6 to fill the gap it leaves, is the core of insuring a condo correctly.
Lender Requirements Make Coverage Non-Negotiable
Condo coverage is not just prudent — it is what keeps units financeable. Fannie Mae, Freddie Mac, FHA, and VA impose mandatory insurance requirements for a project to be warrantable, and an association that fails them can render its owners' units unsellable on the conventional market. Those requirements typically include master property coverage equal to at least 100% of replacement cost, general liability of at least $1 million per occurrence, fidelity or crime coverage tied to the reserves and assessments the association holds, and flood coverage for any building in a designated flood hazard area. Recent guideline changes also scrutinize reserves, deferred maintenance, and special assessments.
Key Risks in Condo Association Operations
Condominium associations face exposure related to:
Water damage and pipe bursts, and the master-versus-unit fights over who pays
Lawsuits against the board over assessments, elections, rules, or construction defects
Bodily injury in common elements — lobbies, garages, stairwells, elevators, and pools
Embezzlement or theft of dues and reserves
Fair-housing and reasonable-accommodation complaints
A catastrophe or large deductible that becomes a special assessment on every owner
Reserve, structural-inspection, and deferred-maintenance exposure heightened since the Surfside collapse
Water losses are the signature condo claim, and their frequency drives much of what the association pays.
Core Coverages for Condo Associations
A properly built condo association program typically includes:
Master Property Policy — Insures the building and common elements — structure, roof, exterior, and shared systems — with its reach into the units set by the declaration.
Directors & Officers Liability — Protects the board, the association, and its committees for governance decisions, and should respond to non-monetary and injunctive claims, not just money damages.
Commercial General Liability — Covers bodily injury and property damage in the common elements, carried at the $1 million per-occurrence limit lenders require.
Fidelity / Crime Coverage — Responds to theft of dues and reserves, at limits tied to assessments and reserve balances, and should cover the management company that handles the funds.
Equipment Breakdown — Covers failure of elevators, boilers, chillers, pumps, and electrical systems the building depends on.
Ordinance or Law — Pays the added cost to rebuild to current code — critical for older buildings and heightened by post-Surfside code changes.
Flood Insurance — Covers flood loss the master property policy excludes, and is lender-required for buildings in a flood hazard area.
Workers' Compensation — Provides legally required coverage for on-site staff and responds when an uninsured contractor is injured.
Umbrella / Excess Liability — Adds higher limits above the master program for high-occupancy and high-rise exposure.
Cyber Liability — Addresses a breach of the owner information the association holds.
What's Commonly Overlooked
Condo association programs are most often weakened by:
A master-policy variant that no longer matches the declaration, leaving gaps with owners' HO-6 policies
Ordinance-or-law coverage missing on an older building
Flood limits below the replacement cost, or no flood coverage in a hazard zone
Fidelity limits below the lender-required reserves plus assessments
Reserves and structural studies that fall short of new post-Surfside requirements and threaten warrantability
Because so much depends on the declaration and lender rules, these gaps often surface at a sale, a claim, or a renewal audit.
Real-World Claim Examples
A burst supply line floods multiple units and the master and unit carriers dispute who pays
Owners sue the board over a special assessment or a construction-defect decision
A guest is injured in a lobby, garage, or elevator
A board member or management company embezzles reserve funds
A hurricane loss exceeds the master limit, or a large wind deductible is assessed to every owner
Any one of these can reach the association's full limits and land on the owners as a special assessment.
Why Proper Placement Matters
The declaration and the state condominium act control who insures what, and Fannie Mae, Freddie Mac, and FHA warrantability rules — along with post-Surfside reserve and milestone-inspection laws such as Florida's — determine whether units stay financeable. The market has hardened sharply since the Champlain Towers collapse: premiums and deductibles are up, carriers have exited, and older, coastal, high-rise, or water-loss-heavy buildings increasingly land in surplus-lines markets. Underwriters weigh unit count, building age, height, and construction, roof and system updates, water-claim history, reserve adequacy and structural studies, management, and catastrophe exposure. Placing this risk takes a broker who understands both the master-policy structure and the lender rules riding on it.
Our Approach
At Cory Washington & Co., we insure condo associations from the declaration outward. We match the master property policy to the governing documents, structure directors-and-officers, general liability, and fidelity coverage to meet lender warrantability requirements, add equipment breakdown, ordinance-or-law, flood, and umbrella where the building demands them, and help owners scope their HO-6 policies to the gap the master policy leaves. We also insure homeowners associations and the property managers who run these communities.
The master policy holds the whole building — and every owner's investment — together, and it deserves to be built with that weight in mind.
All insurance descriptions on this website are provided by Cory Washington & Co. LLC strictly for general informational purposes. They are not intended to be, and should not be relied upon as, legal, financial, or insurance advice. The information presented is general in nature and does not guarantee the availability, terms, conditions, or scope of any insurance coverage. Actual coverage is determined solely by the specific policy language issued by the insurer and remains subject to underwriting approval. Nothing on this website creates or implies an agent-client relationship, binds coverage, or alters any existing policy. Cory Washington & Co. LLC expressly disclaims any liability for actions taken, or not taken, based on the content provided here. For advice regarding your particular situation, please consult directly with a licensed insurance professional at Cory Washington & Co. LLC or another qualified insurance professional, and always review your policy documents in full.
Download the fillable Associations (Property & Liability) Supplemental to start your submission, or browse all applications.
Frequently Asked Questions
How do I get condo association insurance through Cory Washington & Co.?
Request a quote or contact our team. We start with a short conversation about your operations, analyze your exposures, then negotiate condo association insurance across multiple carriers that compete for your account and present options with the trade-offs explained. Cory Washington & Co. LLC is licensed in all 50 states.
What drives the cost of condo association insurance?
Premiums vary from business to business. The main drivers of condo association insurance pricing are the nature of your operations, your revenue and payroll, your loss history, and the limits you carry. Rather than quote a flat figure, we negotiate across several markets and walk you through the options, so you only pay for the protection you actually need.
Do I need condo association insurance?
Requirements vary. Condo association insurance may be mandated by statute, or required under your contracts, leases, or loan agreements — and in many cases it is simply prudent given the risks involved. We look at your specific obligations and exposures, then recommend the coverage and limits that fit.
What if another agency has already declined or non-renewed my coverage?
Difficult, specialty, and previously-declined placements are a core part of our work. We access excess & surplus (E&S) and specialty markets that many generalist agencies cannot, and we explain the trade-offs clearly so you can decide with confidence.
Available in all 50 states. See how requirements differ in California, Texas, Florida, New York, or choose your state.