What you have: Master Policy
When buying an attached home (condo, townhome, etc.), part of the HOA fee goes toward the Master Insurance Policy. The Master Policy covers liability & property coverage for the HOA. This policy DOES NOT cover the inside of each unit; this coverage insures each building from the “studs out.”
What you might also need: HO6 & Loss Assessment
When buying an attached dwelling, you will want to ADD an HO6 policy, which covers the unit’s contents, and any damage from the “studs in” (e.g., kitchen fire damage, loss from theft).
Finally, while the exterior of each building may be covered with the Master Policy, the deductible is still the homeowner responsibility. This deductible used to be manageable, but now insurance companies (generally) charge 10% of the total cost of the work. Let’s say a hail storm hits, resulting in each building needing a new roof. And let’s say each roof costs $50,000 — for a total cost of $400,000. If there are a total of 24 owners, and if the deductible is $40,000, each owner will owe just under $1700 for his/her portion of the deductible.
You as the owner can either start saving now for this potential cost, or you can invest monthly in Loss Assessment coverage, an optional add-on to the HO6 policy (i.e., H06 policy is prerequisite to this coverage). You should be able to get $5000 of coverage for around $10/month.