What is a master policy?
A master policy is the community association’s insurance policy covering common areas and, in some cases, shared structural elements like exterior walls or roofs. It typically covers two things: property damage to common areas, and liability for personal injury that happens on them.
Why does a master policy matter?
Without a solid master policy, damage to shared property or an injury in a common area could fall back on individual homeowners or drain the reserve fund directly. This policy is what keeps that risk pooled and manageable.
When You’ll Run Into This
This gets reviewed closely during the HOA’s annual insurance renewal, and again immediately after any incident involving shared property. Our guide on what every board member should know about HOA insurance covers what a solid master policy should include.
