A Condo Association Insurance master policy protects your association’s shared property and liability - think roofs, hallways, elevators, pools, and the association itself. Unit owners still need HO-6 policies for the inside of their homes. The biggest mistakes we see? Confusing policy types, underinsuring roofs, and overlooking water and D&O exposures.

What Is a Master Policy?

Your condo association’s master policy (sometimes called the association policy) is the backbone of your community’s protection. It covers:

Shared property: roofs, exterior walls, elevators, stairwells, lobbies, garages, gyms, pools
Association liability: injuries in common areas, legal defense
Optional add-ons: equipment breakdown, ordinance or law, flood, crime/fidelity, umbrella

The Three Main Master Policy Types

Bare Walls / Structure Only (Walls-Out)
Covers the building shell and common elements. Owners insure everything inside the studs (cabinets, flooring, fixtures) with an HO-6.
Single-Entity
Covers original fixtures inside units (as built), but not owner improvements. Owners still need HO-6 for upgrades and personal property.
All-In / All-Inclusive
Covers most permanent interior fixtures, including some upgrades. Owners still need HO-6 for personal property, loss of use, and personal liability.

Why it matters: Your governing documents (Declaration/bylaws) decide where the master policy stops and the HO-6 starts- and this affects deductibles and claim handling.

What the Master Policy Typically Covers

Building Property (Master Property): shared structures and common elements
General Liability: slips/falls in halls, pool deck injuries, parking lot incidents
Directors & Officers (D&O): protects board members against allegations of mismanagement
Crime/Fidelity: protects association funds against theft or fraud
Equipment Breakdown: mechanical/electrical failure of boilers, elevators, HVAC
Business Income / Loss of Fees: helps replace lost assessments/dues after a covered loss
Umbrella Liability: extra liability limits above GL and D&O

What It Doesn’t Cover

Unit owners’ personal property (furniture, clothing, electronics)
Some betterments & improvements (depends on policy type/bylaws)
Flood (usually separate), some wind/hail scenarios in coastal counties
Earthquake (usually an endorsement)
Wear and tear or maintenance issues

How the Master Policy Works with HO-6

Think of the insurance like a relay race:

The master policy carries the baton for shared property and common areas.
The HO-6 takes over inside the unit and covers the owner’s personal liability, loss assessment (if endorsed), loss of use, and personal property.

Pro tip: Encourage owners to add Loss Assessment coverage on their HO-6. If a big deductible or uncovered cost is assessed to owners, this endorsement can help.

Texas-Specific Considerations (What We See Most)

Wind/Hail deductibles: Often a percentage of Total Insured Value. Align bylaws, reserves, and owner communications on who pays and when.
Roof age & materials: Roof condition heavily influences pricing and coverage terms—document upgrades.
Water damage: Burst pipes and HVAC leaks are top claim drivers. Verify water backup coverage and maintenance protocols.
Ordinance or Law: Older buildings may face code upgrades after a loss—ensure you have adequate A/B/C limits.
Vendors & COIs: Require Certificates of Insurance with correct limits and additional insured language where appropriate.

Texas Law: What TUCA §82.111 Requires

This overview is for general information only and isn’t legal advice. Always check your Declaration/bylaws and consult counsel.

Texas Uniform Condominium Act (TUCA), Texas Property Code §82.111 requires condo associations to maintain a master insurance policy. In practice, boards should know:

Mandatory master policy: Must insure the common elements and the units (excluding owner improvements/betterments).
Minimum amount: At least 80% of replacement cost (or ACV) at policy inception and renewal. Many lenders require 100% replacement cost.
Perils covered: Must include common causes of loss (e.g., fire and extended coverage).
Liability insurance: The association must carry commercial general liability for common areas.
Deductibles: “Reasonable” deductibles are allowed; owners may be assessed up to the deductible amount depending on your governing documents.
Governing documents control the details: Your Declaration/bylaws set the master policy type (Bare Walls, Single-Entity, All-In), deductible rules, and often exceed state minimums.

What This Means for Boards

Confirm policy type in writing (Bare Walls vs. Single-Entity vs. All-In).
Validate limits annually (replacement cost/TIV, especially after upgrades).
Document deductible handling in bylaws and owner communications.
Match lender expectations (expect 100% replacement cost if financed).
Keep a COI process for vendors and contractors.

Important for Unit Owners

Carry an HO-6: Even with “All-In,” owners need HO-6 for personal property, loss of use, personal liability, and loss assessment.
Know your responsibility line: Read the Declaration/bylaws to see where the master policy ends.
Ask about assessments: Understand when an owner can be charged part/all of a deductible after a loss.

Common Gaps That Cost Associations Money

Underestimating replacement cost (TIV)
Missing or too-low D&O limits
Insufficient crime/fidelity relative to reserves
No equipment breakdown for elevators/central systems
Bylaws misaligned with actual master policy type
No plan for large deductibles or special assessments

What Impacts Cost

Number of units/buildings and square footage
Construction type, roof age, and updates
Amenities (pool, gym, elevators)
Claims history (frequency/severity)
Security/maintenance practices
Deductibles (all-peril vs. wind/hail %)

Documents That Speed Up Your Quote

Declaration and bylaws (confirm policy type and responsibilities)
Current policy dec pages and endorsements
Five-year loss runs (or as available)
Building roster with square footage/TIV
Roof details (age, material), major updates (plumbing, electric, HVAC)
Amenity list (pool, gym, gates, sprinklers)
Vendor/contractor COIs for review

Claims: What Boards Should Do First

Protect people and property (shut off water, secure the area).
Document photos, times, witnesses, and steps taken.
Notify your agent/carrier quickly—delays can increase costs.
Communicate with owners about what the master policy covers vs. HO-6.
Track invoices and keep a clean paper trail for adjusters.

FAQs (Board-Friendly)

Do owners still need HO-6 if we’re “All-In”?
Yes. They need personal property, loss of use, personal liability, and usually loss assessment.

Who pays the master policy deductible?
Check your bylaws. Many associations pay from reserves or levy a loss assessment; some allocate to affected units.

Can we bundle coverages?
Often, yes—Property, GL, D&O, Crime/Fidelity, and Equipment Breakdown can be packaged for consistency (and sometimes better pricing).

Do we need flood insurance?
If you’re in or near a FEMA flood zone, your lender may require it. Many inland Texas communities still add flood due to heavy rain events.

Why Boards Choose Thumann Insurance Agency

Independent & local: Dallas-based advisors with Texas HOA/COA experience
80+ carriers compared: We benchmark terms, limits, and deductibles for you
Board-level guidance: From bylaws alignment to wind/hail deductibles and COIs
Fast service: Same-day COIs for vendors and responsive claims support

Next step: Have us review your current master policy and bylaws. We’ll map coverage lines between the association and unit owners, recommend limits, and price it across multiple top-rated carriers.

Call (972) 991-9100 or Start your Condo Association Insurance quote online.

Disclaimer: This information is for educational purposes only and not legal advice. Coverage, terms, and availability vary by carrier and change over time. Always consult your policy and legal counsel for specifics.

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Texas Condo Association Master Policy: Board Guide