Definition
The HOA's primary insurance policy covering common areas and shared property, distinct from owners' individual policies.
The master policy is the association's main insurance, covering common areas and — especially in condos — shared building structures against damage and liability. It's separate from the individual policies owners carry on their own units and belongings.
How coverage divides between the master policy and owner policies depends on the governing documents and, for condos, the type of master policy (bare walls, single entity, or all-in). Boards should understand exactly where the association's coverage ends and owners' begins, and review the policy annually as costs and risks change.