HOA Master Policy Deductibles: What Condo Owners Should Know

If a covered loss starts in your unit, your condo association may be allowed to pass part or all of its master policy deductible to you. With HOA deductibles of $10,000, $25,000 or more becoming common, every condo owner should check two things: the size of the master deductible and the loss assessment limit on their own HO-6 policy.

How it happens

Say a washing machine hose fails in your unit and water damages the units below. The association’s master policy pays for the building damage after its deductible. Depending on your HOA’s governing documents and Washington law, the association may assess that deductible to the owner of the unit where the loss started.

Loss assessment coverage

Your HO-6 condo policy can include loss assessment coverage, which pays your share of a covered assessment. Many policies start with a small default limit, often just a few thousand dollars, and it can usually be increased for a modest cost. We recommend matching it to your HOA’s deductible.

Earthquake deductibles are bigger

If your association carries earthquake coverage, its deductible is often a percentage of the building value and can be very large when split among owners. Earthquake loss assessment coverage is a separate add-on.

Your to-do list

• Ask your HOA or property manager for the master policy declarations and deductible amounts
• Find out whether the master policy is bare walls or all-in
• Check your HO-6 dwelling and loss assessment limits
• Send all of it to us for a quick review

Learn more on our condo insurance page or call (425) 555-0100.