One of the most misunderstood aspects of condo ownership in Florida is the division of insurance responsibilities between the condo association and the unit owner. Many Florida condo owners assume that because they pay monthly association fees—and because the association carries a master insurance policy—their entire unit is protected. Unfortunately, that assumption has led countless owners to discover expensive gaps only after a loss occurs.

Florida condo associations follow specific requirements under state law, but every building is different. The master policy may cover more or less than you think, and your personal HO-6 policy must fill the gaps.

In this second installment of the Florida Condo Insurance Education Series, we break down everything you need to know about your association’s master policy: what it covers, what it excludes, and how it works alongside your HO-6 policy to protect your condo.

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Understanding What a Master Policy Is

Every Florida condominium association maintains a master insurance policy. This policy is paid for through owner assessments and is designed to protect the building and shared property—not the interior of your individual unit or your personal belongings.

A typical master policy includes:

• Coverage for the building’s structure
• Coverage for common areas (lobbies, hallways, elevators, stairwells)
• Exterior components (roof, exterior walls, windows, amenities)
• Liability coverage for injuries in shared spaces
• Sometimes limited “walls-in” coverage, depending on policy type

Sounds simple, right? The challenge is that Florida condo associations can choose from different coverage forms, and each one has a major impact on what you must insure through your HO-6 policy.

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The Three Types of Florida Condo Master Policies

Most condo master policies fall into one of three categories. Understanding which one your association carries is critical—because the difference between them can cost you tens of thousands of dollars after a loss.

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1. Bare Walls (Also Called “Studs-Out”)

Under a bare walls master policy, the association insures:

• The building structure
• The roof
• The exterior walls
• Common elements

But they do not insure anything inside your unit beyond the drywall or studs.

If your building uses a bare walls form, your HO-6 policy must cover:

• Drywall
• Trim, baseboards, and paint
• Interior doors
• Flooring
• Cabinets and countertops
• Bathroom and kitchen fixtures
• Appliances
• Lighting fixtures
• Built-ins and improvements

This is the most common policy form in older Florida condo buildings and also in communities where each unit has unique interior finishes.

A water loss, kitchen fire, or hurricane-related leak can result in huge out-of-pocket expenses if your HO-6 building coverage is too low.

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2. Single Entity (Also Called “Walls-In”)

A single entity policy generally covers:

• The building structure
• Common areas
• Original interior features (as installed by the developer)

This means the association’s master policy may cover your:

• Original cabinets
• Original flooring
• Original bathroom fixtures
• Original countertops

However, it does not cover:

• Any upgrades you’ve made
• Improvements from prior owners
• Additions or renovations
• Betterments (like premium flooring or cabinetry upgrades)

If your condo was remodeled in 2021 but built in 1995, your master policy likely only covers the finishes from 1995—if it covers them at all. Your HO-6 must insure everything beyond builder-grade finishes.

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3. All-In (Also Called “All Inclusive” or “Full Walls-In”)

This is the most comprehensive master policy form. Under an all-in master policy, the association usually covers:

• The building structure
• Common areas
• Original fixtures
• Installed upgrades (sometimes)
• Built-ins, appliances, and interior surfaces

While this sounds like the easiest arrangement for unit owners, there are important caveats:

• The coverage may not extend to significant upgrades or luxury finishes.
• You are still responsible for personal property.
• You still need liability, loss of use, and loss assessment coverage.
• You may still need building coverage for improvements and betterments.

All-in master policies are less common in Florida due to cost, but some newer high-rise buildings use them.

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Why Understanding Your Master Policy Type Matters

Insurance claims are processed based on which policy—master or HO-6—is responsible for the specific part of the damage. If you misunderstand the boundaries, you could unintentionally leave tens of thousands of dollars uninsured.

Examples of real-world issues:

1. A water leak destroys your hardwood floors.

• Bare walls policy? HO-6 pays.
• Single entity? HO-6 pays if floors weren’t original.
• All-in? Master may pay—depending on the building documents.

2. A kitchen fire damages cabinets and appliances.

• Bare walls? HO-6 pays.
• Single entity? HO-6 pays unless they were original cabinets.
• All-in? Master policy may cover some or all—but sometimes at depreciated value.

3. A pipe bursts inside your unit’s wall.

• Bare walls? Master pays for pipe repair; HO-6 pays for everything inside.
• Single entity or all-in? Master may pay for interior repairs—but not for upgrades.

4. A storm damages windows or building exterior.

In most cases, the association’s master policy pays for:

• Exterior walls
• Roof
• Common-area damage
• Exterior windows (in many buildings)

But not always—Florida law allows associations to shift responsibility for windows and sliding doors to unit owners, depending on bylaws.

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Why Florida Condo Documents Matter Just as Much as the Master Policy

Every condo owner in Florida should read—and keep copies of—the following:

• Declaration of Condominium
• Bylaws
• Articles of Incorporation
• Association rules and regulations
• The master insurance policy

These documents govern:

• Which areas are common elements
• Which areas are limited common elements
• What the owner must insure
• What the association must insure
• How hurricane deductibles are applied
• When special assessments can be issued

Even if two buildings have the same insurance policy type (e.g., single entity), the governing documents might shift responsibility from the association to the owner.

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Where Most Florida Condo Owners Get Caught Off Guard

After helping thousands of insureds across the state, we’ve identified the most common problem areas where condo owners misunderstand coverage.

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1. Interior Renovations and Upgrades Are Almost Never Covered by the Master Policy

Even with the best master policy, your:

• Granite countertops
• Hardwood floors
• Custom cabinets
• New appliances
• Luxury bathroom upgrades

will not be replaced by the association after a loss.

Your HO-6 needs enough building coverage to fully restore your improvements.

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2. Water Damage Confusion

Water damage is the number one source of condo claims in Florida, and it often leads to finger-pointing between the association and unit owners.

Examples:

• A leaking AC unit in your condo
• A pipe above your unit bursting
• A shower pan in the unit next door leaking
• Water intrusion during a tropical storm

Without clear documentation, both sides may try to pass the bill to the other. Your HO-6 helps ensure you’re not stuck waiting months for the association to decide.

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3. Hurricane Deductibles Catch Owners off Guard

Association master policies often carry hurricane deductibles ranging from:

• 2% of building value
• Up to 5%, 10%, or even higher

A large high-rise valued at $50 million with a 5% hurricane deductible means a deductible of $2.5 million.

That deductible is then passed proportionally to the unit owners.
This is why Loss Assessment Coverage in your HO-6 policy is essential.

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4. Associations Often Carry Limited Personal Liability Coverage

The association’s liability policy only applies to:

• Common areas
• Common elements
• Situations where the association is legally responsible

If someone slips and falls inside your condo, that is your liability—not the association’s.

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5. Flood Damage Is Usually Not Covered by the Master Policy

Even buildings in flood zones may:

• Only carry minimal NFIP flood coverage
• Have no coverage for personal property
• Have limited coverage for lower floors or parking levels

Flood insurance is a separate conversation entirely—and every Florida condo owner should have their own flood policy.

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How Your HO-6 Policy Complements the Master Policy

Think of the master policy and HO-6 like two puzzle pieces that must fit together perfectly:

The Master Policy Covers:

• Structural components
• Exterior walls
• Roof
• Elevators
• Lobby
• Pool and clubhouse
• Sidewalks
• Parking garages
• Common area liability

Your HO-6 Covers:

• Personal belongings
• Walls-in interior finishes
• Flooring, cabinets, appliances, and fixtures
• Improvements and renovations
• Personal liability
• Temporary housing after a covered loss
• Assessments from the association
• Interior water damage
• Deductible gaps from master policy claims

Gaps between these two policies are where the most expensive surprises occur.

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Why Relying on the Master Policy Alone Is a Risky Mistake

Some condo owners mistakenly assume the master policy is enough. After all, they’re paying monthly dues. But major coverage gaps can lead to catastrophic out-of-pocket expenses.

Real examples from Florida owners:

• A $40,000 special assessment for a hurricane deductible
• $18,000 in flooring replacement denied due to bare walls policy
• $12,000 in mold remediation after a slow leak
• $25,000 in kitchen repairs that master policy would not cover
• $80,000 assessment for structural repairs after Surfside-era inspections

Without a properly structured HO-6, these costs fall on the unit owner.

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How to Find Out What Your Master Policy Covers

Most owners never look at their association’s master insurance policy—but you should. To determine your responsibility:

1. Ask your association for a current copy of the master insurance policy.
2. Request the declaration pages and policy form.
3. Review the governing documents to determine who is responsible for:
   • Windows
   • Sliding doors
   • Plumbing lines
   • HVAC units
   • Limited common elements
4. Share these documents with your insurance agent.
5. Let your agent structure your HO-6 based on what the master policy excludes.

At Florida Risk Partners, we routinely review condo master policies for clients, so they have no surprises when a claim occurs.

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Final Thoughts: The Master Policy Is Not Enough—Your HO-6 Fills the Gaps

Your association’s master policy is an important part of protecting the building, but it is not designed to protect you, your personal belongings, or the interior finishes of your condo unit.

Misunderstanding the boundaries between your master policy and your HO-6 coverage can leave you exposed to tens of thousands of dollars in damage after a loss.

A properly structured HO-6 policy:

• Matches your building’s policy form
• Covers your renovations and upgrades
• Protects you from assessments
• Ensures you have liability protection
• Covers water damage inside your unit
• Provides temporary housing when needed

This is the heart of smart condo insurance in Florida.

Next week, we’ll explore one of the most misunderstood—and most important—parts of your HO-6 policy: Loss Assessment Coverage, and why it’s a must-have in the Florida market.