What does HOA insurance cover and what do I need separately?

Most condominium declarations require the association to maintain a master hazard policy covering the building structure and common elements, a general liability policy for common areas (typically $1-5M), and workers' compensation for employees. Directors & Officers (D&O) liability coverage is increasingly standard. Declarations define the line between association and owner coverage differently — many require owners to insure unit improvements and betterments above original construction standards. Loss assessment coverage, which pays when the master policy deductible or a gap exceeds what the association can collect, is often required of owners or strongly recommended. The master policy deductible — sometimes $10,000-$100,000 — is increasingly allocated to the unit owner whose negligence caused the loss.

Every HOA's governing documents differ. The patterns above reflect common drafting conventions — your CC&Rs may be more or less restrictive.