Master policy vs HO-6

What the master policy actually insures

An association built on the Uniform Common Interest Ownership Act model has a statutory duty to insure the common elements, not a board preference it can skip. Where a unit has physical boundaries like drywall and framing, the statute typically draws the coverage line at the unit's original condition, not whatever an owner installed later.

"against all risks of direct physical loss commonly insured against"

Source: West Virginia Code §36B-3-113, State of West Virginia

The strictest version of that line is what the industry calls bare walls coverage.

"the HOA obtains insurance that does not rebuild the individual residential interiors but instead restores damaged homes to a shell condition with bare walls, floors and ceilings"

Source: Laying it bare: Simplifying property insurance, Community Associations Institute

What the HO-6 fills in

Whatever the master policy stops short of, paint, flooring, cabinets, personal belongings, and liability inside your own unit, is the HO-6's job. Exactly how much of your unit's interior the master policy covers depends on your declaration and your policy's own wording, not a nationwide rule. Read both before you assume you're covered.

An HO-6 also picks up something owners often miss: loss assessment coverage, which reimburses you if the association levies a special assessment tied to a covered loss. A standard HO-6 commonly ships with only $2,000 of that coverage, an amount worth raising to $50,000 or $100,000 if your building carries any real risk of a shared loss.

Does state law make you buy one?

This varies by state, and it is not a formality. In the District of Columbia, unit owners must obtain their own condominium insurance by statute. Florida's condominium and homeowners' association statutes impose no such general duty; the HO-6 most Florida owners in fact carry comes from their lender or their declaration, not from state law. Texas preserves an owner's right to buy individual coverage but does not make it a statutory obligation.

Your lender can require more than your state does

If the unit relies on Fannie Mae eligible financing, an HO-6 is required whenever any part of the unit's interior is not covered by the master policy, or whenever the master policy carries a per-unit deductible. That HO-6 must be written on a replacement cost basis, and its deductible is capped at the greater of 5 percent of the coverage amount or $2,500. This floor applies regardless of what your state's own statute alone would require.