Master Condominium Insurance

Master Condominium Insurance: What Boards and Trustees Need to Know

If you’re part of a condo association in Massachusetts, your insurance isn’t just another policy. It’s what protects the entire building, the shared spaces, and ultimately every unit owner involved.

We work with condo boards and property managers across the area, and we see this all the time. The policy looks fine until there’s a claim, and then questions start coming up fast.

Who’s responsible? What’s actually covered? Where are the gaps?

What a Master Condo Policy Actually Covers

A master condominium policy is designed to cover the shared structure and common areas of the property.

That typically includes:

• The building itself

• Roof, hallways, stairwells

• Elevators and shared systems

• Pools, gyms, and other common spaces

• Liability for accidents in common areas

Sounds straightforward, but this is where things can get tricky.

The Biggest Area of Confusion: Where Coverage Stops

Most people don’t realize there are different types of master policies, and the details matter a lot.

Bare Walls In
Covers the structure only. Unit owners are responsible for everything inside their walls.

Single Entity
Covers some interior elements like original fixtures.

All In (or All Inclusive)
Covers most built-in features inside units, but not personal property.

If your board doesn’t fully understand which one you have, it can create serious issues when there’s damage.

What We See All the Time

We see this all the time with condo associations:

• Outdated replacement cost valuations on buildings

• Policies that don’t match the condo documents

• Unit owners assume things are covered when they’re not

• Gaps between the master policy and individual unit policies

• Deductibles that are much higher than expected

Most people don’t realize how big these gaps are until there’s a loss.

Real World Situations

Here’s how this plays out:

• A pipe bursts and damages multiple units. No one is clear what the master policy covers vs. unit owners

• A storm causes roof damage, but the building isn’t insured to current replacement cost

• Someone slips in a common area and the association is held liable

• A large deductible gets passed to unit owners and creates tension within the association

These are the situations where having the right structure in place matters.

Insurance Coverage That Actually Matters

For most condo associations, these are the key pieces:

Property Coverage
Should reflect true replacement cost, not outdated estimates.

General Liability
Protects the association if someone is injured on the property.

Directors & Officers (D&O)
Protects board members making decisions on behalf of the association.

Umbrella Insurance
Adds an extra layer of protection above liability limits.

Ordinance & Law Coverage
Helps cover the cost of rebuilding to current codes, which is a big factor in Massachusetts.

Common Mistakes That Cost Associations Money

• Not reviewing the policy as property values increase

• Assuming the property manager is handling everything

• Not aligning coverage with condo documents

• Choosing based on price instead of coverage

• Not educating unit owners on what they need individually

This is where problems tend to start.

Why Working with a Local Agency Matters

Condo associations in Massachusetts deal with older buildings, weather exposure, and local regulations that all impact coverage.

As an independent agency, we work with multiple carriers to structure policies that actually match the property and the association’s needs.

And just as important, we help explain it in plain terms so boards can make informed decisions.

A Quick Check for Your Association

If you’re part of a condo board or manage a property, it’s worth asking:

• Do we know exactly what our master policy covers?

• Are we insured to current replacement cost?

• Do our unit owners understand their responsibilities?

If you’re not 100% sure, it’s a good time to review it.

If you want a second set of eyes on your current policy, we’re happy to take a look and walk through it with you. No pressure, just clarity. Contact us today.