One of the most common surprises for Colorado HOA owners is learning that the association's insurance does not cover everything inside their home. Understanding the split between the master policy and your own homeowner policy helps you buy the right coverage and avoid gaps when something goes wrong.
What the master policy typically covers
The association carries a master insurance policy for the community. What it covers depends on your governing documents and the policy itself. In many communities, the master policy covers common areas and shared property, such as clubhouses, roofs on common buildings, exterior walls and other association-maintained components.
In some condo and townhome communities, the master policy also covers more of the building structure. In others, coverage stops at a defined boundary, such as unfinished walls or the unit entry door. The only reliable way to know is to review your documents and the association's current Certificate of Insurance (COI).
What your homeowner policy covers
Your own policy fills in what the master policy does not. For many condo and townhome owners, that is an HO-6 (unit owners) policy. It typically covers:
- Personal belongings, such as furniture, clothing and electronics.
- Improvements and betterments inside your unit, depending on your policy and documents.
- Loss of use if you cannot live in the home after a covered event.
- Personal liability for certain incidents that occur in your unit.
If you live in a detached home in an HOA, you may carry a standard homeowner policy instead, but you should still tell your agent that you live in an association so they can review how common-area coverage interacts with yours.
Deductibles: who pays after a claim?
Master policies often have high deductibles. After a claim on the association's policy, who pays that deductible is set by your governing documents and board policy. Sometimes the association absorbs it from reserves or the operating budget. Sometimes it is allocated to the owners affected by the loss, or shared among all owners.
For the correct deductible amounts, always use the community's current Certificate of Insurance, not an older notice or an outdated copy of the governing documents. Deductibles can change at renewal.
Tips when you buy or renew coverage
- Tell your insurance agent you live in an HOA and share what you know about the master policy.
- Ask your community manager for the current Certificate of Insurance when you need it for a lender, a closing or your own agent.
- Review whether your policy includes coverage for your share of a master-policy deductible.
- Keep your policy current when you remodel, so improvements inside your unit are not underinsured.
Why this matters
Insurance gaps show up at the worst time: after a storm, a pipe leak or a fire. A few minutes spent understanding the master policy and lining up your own coverage can save owners from unexpected out-of-pocket costs.
Not sure what applies in your community? Contact your community manager. Accord owners can also find community documents through the HOA Portal at accordhoa.com.
This article is general information only, not legal advice. Your community's governing documents and applicable Colorado law control; consult your association's attorney about specific situations.