Does HOA Cover Fire Insurance?

If you live in a condo or a planned community, chances are you’re part of a Homeowners Association (HOA). An HOA is an organization that manages and maintains common areas and shared amenities within a residential development. Along with maintaining these shared spaces, one of the most important responsibilities of an HOA is carrying insurance, commonly referred to as a type of home insurance policy. master insurance policy to protect the community.

But what happens when a fire occurs? Does HOA cover fire insurance, or are homeowners on their own when it comes to fire damage? The answer isn’t always simple and largely depends on your HOA’s policy and your personal homeowners insurance. This guide will help clarify what’s typically covered, what isn’t, and why individual insurance policies are still essential.

What is an HOA master insurance policy?

A master insurance policy is a form of HOA insurance that provides protection for shared property and common areas. This can include structures like the building’s exterior, hallways, lobbies, clubhouses, elevators, pools, and roofing. In many cases, a condo insurance policy is important for residents who live in an HOA. HOA communities, the cost of this policy is covered by hoa fees or dues Collected from each homeowner, the dues contribute to the HOA insurance cover. hoa member.

HOA insurance coverage ensures that if there’s damage to shared structures—such as from fire, storms, or other disasters—the association has the resources to pay for repairs. This is essential for preserving the value of the entire community and minimizing insurance claims and out-of-pocket expenses for hoa board members and individual homeowners.

For a deeper dive into HOA responsibilities, including hoa rules and regulations and enforcement, check out this article on hoa violations.

Fire insurance coverage in HOA policies

In the event of a condo fire, most HOA master policies typically cover fire damage to:

• Shared or common areas, like stairwells, lobbies, and fitness centers
• Structural elements such as exterior walls, roofs, and foundations
• Utility systems located in shared spaces are often included in the HOA insurance cover.

However, what your individual unit insurance policy may cover can differ significantly. hoa insurance policy covers exactly depends on the type of insurance the association holds. The master policy may also include liability coverage for injuries that occur in these shared spaces.

While the HOA insurance may pay for damage caused By a fire in the building’s structure, it may cover damages to common areas as well. not usually cover damage within your unit. If the fire spreads into an individual condo unit, the coverage from an HOA policy might stop at the Walls-in coverage is a type of home insurance policy that protects the interior of an individual unit. level, which means the homeowner must rely on their personal condo insurance for internal repairs.

What HOA fire insurance doesn’t cover

While HOA insurance works to protect the community and may cover common areas. to protect the building, it doesn’t cover everything. In general, the following are not included in most HOA’s insurance policies:

• Personal belongings or personal property within your unit
• Interior elements like flooring, cabinets, appliances, and drywall (depending on the type of policy)
• Upgrades or renovations you’ve made, like custom fixtures or smart-home systems
• Damage to your unit from smoke, water, or wildfire damage beyond the building’s structure

That’s why most HOAs require or strongly encourage residents to purchase individual homeowner’s insurance, often referred to as HOA insurance cover HO-6 policies. These policies provide insurance coverage for property damage, personal belongings, and liability protection within your home. They also help cover the cost of living elsewhere during repairs.

If you’re wondering whether renters face similar coverage gaps, see is renters insurance required.

Types of HOA insurance policies

Understanding your hoa coverage starts with knowing the insurance types your association holds. The most common type of coverage includes one of the following:

1. Bare walls coverage

This policy covers only the basic structure of the building—like the walls, roof, and foundation. Anything inside the walls of your unit, including electrical wiring, insulation, or paint, is not covered.

2. Single entity coverage

This provides a broader scope of coverage by including built-in items such as cabinets, countertops, and fixtures originally installed by the builder.

3. All-in coverage

Also known as inclusive type of coverage, this policy goes a step further by including upgrades or modifications made by homeowners, but not personal belongings.

For more clarity on how hoa insurance types affect your responsibilities, visit hoa insurance types.

Importance of individual homeowners insurance

Even if your hoa policy is comprehensive, it’s crucial to carry your own home insurance. Homeowners insurance policies can be tailored to meet your unique needs and typically offer:

• Dwelling coverage for damage inside your unit
• Protection for personal property like electronics, clothing, and furniture
• Liability coverage for accidents that occur inside your condo
• Loss assessment coverage to help pay for a share of damage to common areas not fully covered by the association insurance

Your personal policy may also help with your portion of the deductible on the HOA’s claim if shared among homeowners. That’s why many hoa board members and insurance professionals recommend consulting with your insurance agent to evaluate coverage gaps and ensure you’re fully protected.

If you’re still evaluating your options, these articles can help:

• apartment building insurance coverage
• apartment building insurance policy
• Apartment building insurance cost
• 7 Common HOA Violations Homeowners Should Know

Conclusion

In an HOA community, insurance responsibilities are split between the association and the individual homeowner. While the HOA’s master policy HOA insurance generally covers the common areas, but individual unit owners should also have their own home insurance policies. fire damage to common areas and building exteriors, it doesn’t cover interiors or belongings. That’s where personal homeowner’s insurance becomes vital.

The policy you choose as a homeowner should fill in the coverage gaps left by the HOA’s insurance policy. Whether you’re required to carry insurance or not, the reality is that insurance is crucial to protect your investment and ensure peace of mind.

To avoid unpleasant surprises after a disaster, be sure to:

• Review your HOA policy
• Understand the coverage limits
• Work with an experienced insurance agent

And always keep in mind that hoa may require homeowners to carry insurance not just for their own protection, but to preserve the financial health of the entire community.