If you’re buying a condo, townhome, or patio home in an HOA, part of your monthly HOA fee typically goes toward the Master insurance policy (sometimes called the Hazard policy). This policy usually covers each unit from the “studs out”—the exterior and shared areas like the roof, siding, and grounds (though typically not windows).
That means the owner is responsible for everything inside the unit—interior walls, flooring, appliances, cabinets, and personal belongings. You’ll likely need an HO6 policy to cover the unit’s interior.
If the HOA files a claim, each owner pays a share of the deductible. These deductibles have increased over the years and often represent thousands of dollars for each owner. That’s why it’s worth asking your insurance agent about adding Loss Assessment coverage to your HO6 policy.
This optional add-on can help pay for special assessments issued by the HOA to cover insurance deductibles or damages not fully covered under the Master policy. Coverage amounts and costs vary, but we’ve had clients get $5,000-$10,000 in Loss Assessment coverage for as little as $5–$10 per month.
Finally, please remember we are not insurance experts. Coverage options and pricing change often, so consider this a starting point for asking good questions when you speak with your insurance agent.