Last Updated on October 27, 2026 by Syed Sarim Naqvi
HOA and condo association insurance is a master policy bought by the association to cover the building structure and common areas, plus general liability, directors and officers (D&O) liability for the board and fidelity (crime) cover for association funds, and it commonly costs $3,500 to $40,000 or more a year depending on community size. It stops at the unit’s unfinished walls in most cases, which is why every owner also needs an HO-6 policy.
Key Takeaways
- Typical per-unit cost is about $120 to $300 or more a year for condo associations, $64 to $200 for townhome associations with HOA-owned exteriors, and $40 to $150 where owners insure their own buildings, according to Pro Insurance Group
- Annual master policy costs run roughly $2,400 to $75,000+, and a medium condo association of 50 to 100 units about $25,000 to $75,000 in one guide
- D&O typically costs about $900 to $3,000 a year and covers the board for decisions, not accidents
- Fannie Mae requires master cover at 100% of replacement cost and caps the master deductible at 5% of the coverage amount and $50,000 per unit
- Owners need an HO-6 with loss assessment cover for personal property, improvements and their share of uninsured losses
What Is an HOA or Condo Master Policy?
It is the policy the association buys for shared property. Pro Insurance Group describes it as covering the building exterior, roof, common areas, shared systems and the association’s liability, usually combining property, general liability, D&O and fidelity cover. Whether it also covers interior finishes depends on whether it is written bare-walls-in, single-entity or all-in.
What Do Bare Walls, Single Entity and All-In Mean?
- Bare walls (bare-walls-in): the structure to the unfinished drywall, with finishes left to owners
- Single entity: the building and original fixtures as built, but not owner upgrades
- All-in: nearly all built-in elements inside units, including some owner upgrades
| Item | Master Policy | Owner’s HO-6 |
|---|---|---|
| Building structure and roof | Yes | No |
| Common-area liability | Yes | No |
| Board sued over a decision | Yes, under D&O | No |
| Stolen association funds | Yes, under fidelity or crime | No |
| Personal belongings and interior upgrades | Generally no | Yes |
| Share of a special assessment | No | Yes, with loss assessment cover |
How Much Does It Cost?
Pro Insurance Group puts HOA insurance at $2,400 to $75,000+ a year by community size and condo association insurance at $3,500 to $40,000+. Its cost guide gives per-unit ranges of $120 to $300+ for condominiums, $64 to $200 for townhome associations and $40 to $150 for PUDs where owners insure their own buildings, falling as communities grow. CoverageCriteria cites $25,000 to $75,000 for a medium condo association of 50 to 100 units. A Los Angeles guide says $2,000 to $12,000 a year in that market depending on building size. A sample program in the Pro Insurance cost guide pairs a $25,000 master deductible with a $5,000 per-unit water deductible. These are benchmarks, so get association-specific quotes.
- Building age, size and construction
- Location and catastrophe risk
- Deductible structure
- Claims history and add-ons such as umbrella and equipment breakdown
What Do Laws and Lenders Require?
Requirements come from state law, governing documents and lenders. Illinois, as an example in Pro Insurance Group’s guide, requires full replacement cost property insurance, at least $1,000,000 of general liability, a fidelity bond for associations with six or more units and D&O at a level the board considers reasonable (765 ILCS 605/12). California law, per an e360 guide, requires fidelity cover for associations with more than 10 units. A Pennsylvania example is cited for a blanket fidelity bond. Governingdocs.dev says Fannie Mae caps the master deductible at 5% and $50,000 per unit, and requires an owner HO-6 when the master leaves interior elements uncovered or has a per-unit deductible. Rules change by state, so confirm yours.
What Do Owners Need?
Pro Insurance Group says unit owners should always carry an HO-6 because loss assessment cover, personal property and unit upgrades need separate protection. A per-unit master deductible can effectively set a floor on your own building cover. Leevli gives a case in which a $25,000 per-unit master deductible creates a $25,000 minimum under lender rules on the unit owner policy.
How Does This Fit With Other Property Cover?
Associations deal with the perils in Flood Insurance Explained, Hurricane and Wind/Hail Deductibles Explained and Water and Sewer Backup Insurance Explained. See also Commercial Property Insurance Explained, Renters Insurance Explained and Pool and Trampoline Insurance Explained for shared amenities.
FAQ
How much does HOA insurance cost?
About $2,400 to $75,000+ a year by community size, or roughly $120 to $300+ per unit for condominiums.
What does a condo master policy cover?
The building structure, common areas and the association’s liability, usually with D&O and fidelity cover, but not unit owners’ belongings.
Do I still need HO-6 insurance?
Yes. It covers personal property, interior improvements and loss assessments the master policy does not.
What is loss assessment coverage?
HO-6 cover that pays your share of a special assessment when damage exceeds the master policy limits.
Why do boards need D&O insurance?
It protects volunteer board members personally against suits over decisions, such as enforcement or elections.
What does Fannie Mae require?
Master cover at 100% of replacement cost, with a master deductible capped at 5% and $50,000 per unit.
Glossary
- Master Policy: the association’s policy for shared property and liability.
- HO-6: the unit owner’s condo policy.
- D&O: directors and officers liability for the board.
- Fidelity Bond: crime cover for association funds.
- Loss Assessment: HO-6 cover for an owner’s share of an association charge.
Sources
- Pro Insurance Group: HOA Master Insurance Policy (what it covers, cost range, Illinois example)
- Pro Insurance Group: Condo Association Insurance (cost range, key terms)
- Pro Insurance Group: HOA Insurance Cost 2026 (per-unit ranges, D&O cost, sample quote)
- Pro Insurance Group: Condo Association Insurance, What the Master Policy Covers (master vs. HO-6)
- Leevli: The Condo Association Master Insurance Policy, Read Line by Line (lender rules, per-unit deductible)
- GoverningDocs: HOA Insurance Guide, Master Policy, HO-6, Flood and Lender Rules (Fannie Mae caps, HO-6 triggers)
- MyDragon: HOA and Condo Association Master Policy Guide 2026 (fidelity requirements, D&O)
- CoverageCriteria: HOA Insurance Requirements (medium association cost, requirements)
- e360 Insurance: Los Angeles Condo Insurance Costs and HOA Guide (California fidelity rule, local cost)
Published October 2026. Premiums and legal requirements vary by state, association and lender; confirm with an insurance professional and legal counsel and refresh this article periodically.
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