Condo master insurance vs HO-6
Where the line falls, and who pays the deductible

TWO POLICIES

Two policies cover one building

A condo has two insurance policies on it. The association buys one for the building, and your dues pay for it. That one is called the master policy. You buy the second one for your own unit, and that one is called an HO-6. Those are the two names you will hear.

The two are supposed to meet in the middle. Often they do not. Whatever falls in the gap is yours to pay for. Most owners find out where the gap is after the damage, when it is too late to buy more coverage.

Where the association's coverage stops is written in the building's recorded papers. It is different in every building. Nobody can tell you the answer from memory, and you cannot see it from the parking lot. You have to read the papers.

WHERE THE LINE FALLS

The recorded papers set the line

Ask for two things. The insurance section of the building's recorded papers, and the front page of the association's policy. That front page lists the coverage amount and every deductible on it.

Read them together and answer one question. Does the master policy cover the inside of your unit, or does it stop at the bare walls? If it stops at the bare walls, everything inside is on your policy. Cabinets, countertops, flooring, tile, the wiring in the walls, the paint.

That is a big number to carry. A policy written for your furniture and your clothes will not cover it. Send us the address of the building you are looking at and we will get the papers and read the insurance section with you before you write an offer.

THE DEDUCTIBLE

Owners can be billed for the deductible

When the building is damaged, the association's policy pays for the repair, but not the first part of it. That first part is the deductible. The association has to find that money somewhere, and it can bill the owners for it.

On the coast that number gets bigger. Wind and storm damage usually carries its own separate deductible. That one is often set as a percentage of what the whole building is insured for, instead of a flat dollar amount. A percentage of a whole building is a large number. It gets split among the owners, and your share is usually the same share you pay of the regular dues. It can run into thousands of dollars. The fewer units in the building, the bigger each owner's share of the same bill.

The bill reaches you as a special assessment with a due date on it. It is not optional. If you do not pay it, the association can put a lien on your unit, and a lien has to be cleared before you can sell. Something on your own policy has to cover this.

LOSS ASSESSMENT

Loss assessment coverage pays that bill

Your own policy can carry loss assessment coverage. That is the part that responds when the association bills the owners for a shortfall. It pays your share, up to its limit, and nothing above it.

The limit that comes on a standard policy is usually small. Find the loss assessment line on the front page of your own policy and compare that number to the deductibles on the association's policy. If yours is the smaller number, raise it. Ask your insurance agent to quote the policy at a higher loss assessment limit and put the two prices side by side. Raising it is normally cheap.

Ask your agent in writing what sets the coverage off, what it will not pay, and whether it covers a deductible charged for each unit. That last one matters, because a deductible charged for each unit is the exact bill you are trying to cover. Get the answers before you close, not after a storm.

BEFORE YOU BUY

What to ask for, and when

Order the papers as early as the seller will release them. Associations usually take a few days to send them. Your lender will check that your own policy is big enough, and it cannot check that until somebody knows what the association covers. Get the papers first, then have the policy written once, at the right size. Buying a policy before you know the answer means paying to redo it, and that can hold up your closing.

We pull these papers on every condo we write an offer on, and we read the insurance section the day they arrive. Ask us to do it for the building you are considering.

This is general information, not legal advice. Have a South Carolina real estate attorney read the insurance and assessment sections for the building you are buying. Here is the list we work through.

• ✓The insurance section of the recorded papers. It says where the association's coverage stops and yours starts.
• ✓The front page of the association's policy. It shows the coverage amount and every deductible, including any separate one for wind.
• ✓The per unit deductible, if the policy charges one. Your lender will size your own policy against that number.
• ✓The loss assessment line on your own policy. That is the number that pays your share of a deductible bill.
• ✓The budget and the reserve balance. If reserves cannot cover a repair, the owners get billed for the rest.
• ✓The statement of what the seller owes. The association has to give a buyer one on request, and it caps what you can be charged for the seller's unpaid dues.

Sources. South Carolina condo law (2026); South Carolina wind deductible disclosure law (2026); Lender rules for condo insurance (2026); State guide to home insurance types (2026); Consumer guide to home insurance (2022). Verified July 2026. This is general information about how associations work, not legal or tax advice.

Keep reading

The rest of the HOA guide

• ✓Which HOA documents to request and what each one reveals. Read more.
• ✓How special assessments get triggered. Read more.
• ✓Reserve studies and percent funded. Read more.
• ✓Coastal insurance costs in Myrtle Beach. Read more.
• ✓Non-warrantable condos. Read more.
• ✓What HOA fees cover and why they vary. Read more.

Not sure what the master policy covers?

We read the master deed and the master policy before you make an offer.

Common questions

Master Policy & HO-6 FAQ