A condo master insurance policy is a type of homeowners loss and liability insurance policy that covers various elements of a condo unit and condo community, such as building exteriors, lawns, building framing, walkways and roads, according to SFGate. Condo owners have homeowners insurance while the condo community has a master insurance policy.
Condo master insurance policies are available in all-in and bare wall-in varieties, notes SFGate. The bare wall-in insurance policy protects the building's framing and everything inward. Installations, flooring and fixtures inside of a condo are not covered by this type of master insurance policy. The all-in insurance option protects a unit's interior elements, such as ceilings, walls, floors, fixtures and installations. Condo owners may find they don't need as much homeowners insurance if the condo community has an all-in policy.
No matter the type of master insurance policy a condo community has, the policy often has deductibles the condo owners pay as a single entity, according to SFGate. For instance, if the community has a master insurance policy that has a deductible of $10,000 with 30 owners, each owner would be responsible for roughly $333 for each deductible payment. In the event that the condo building were ever damaged, the building's homeowners association would make a claim against the master insurance policy.