If you own a condo in California and you're relying on your HOA's insurance to cover you — you're likely underinsured in ways that could cost you tens of thousands of dollars. Here's the complete picture.
What the HOA master policy covers
Your HOA pays for a master insurance policy that covers the building and common areas. Depending on the type of master policy:
- Bare walls-in policy: Covers only the bare structure — walls, floors, and ceiling as originally built. Everything inside — flooring, cabinets, fixtures — is YOUR responsibility.
- All-in policy: Covers original fixtures and finishes inside units. Still doesn't cover your belongings, upgrades, or liability.
Key question to ask your HOA: "Do you have a bare walls-in or all-in master policy?" This determines exactly how much your own condo insurance needs to cover.
What the HOA policy leaves uncovered
Regardless of HOA policy type, you're responsible for:
- Your personal belongings — furniture, electronics, clothing, appliances
- Your personal liability — if someone is injured in your unit
- Upgrades and improvements you've made — new flooring, kitchen remodel, bathroom upgrade
- Loss of use — hotel and living expenses if your unit is uninhabitable
- Loss assessment — your share of a loss that exceeds the HOA's master policy limit
What condo insurance (HO-6) covers
A condo insurance policy (HO-6) fills the gaps the HOA leaves:
- Dwelling coverage — interior walls, flooring, fixtures, and your improvements
- Personal property — your belongings, both inside and outside the unit
- Personal liability — legal defense and settlements if someone sues you
- Loss of use — temporary living expenses if your unit is uninhabitable
- Loss assessment — your share of HOA losses that exceed the master policy
- Medical payments — minor injuries to guests regardless of fault
What condo insurance costs in California
Condo insurance (HO-6) in California typically costs $15–$40/month depending on your unit's value, location, coverage limits, and deductible. For a unit with $100,000 in personal property and $300,000 in liability, expect to pay $20–$35/month in most LA-area ZIP codes.
Loss assessment coverage — the one most condo owners miss
Loss assessment coverage is one of the most important — and most overlooked — parts of condo insurance. If your HOA is sued, or a major loss exceeds the master policy limit, the HOA can assess all unit owners for their share of the shortfall. In a large condo building, this can mean a $10,000–$50,000+ special assessment per unit. Loss assessment coverage pays this for you.
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