Condo Insurance in New York
Almost every dispute about condominium insurance comes down to one question that nobody asks until there is water on the floor: where does the master policy stop and the unit owner’s policy start? The answer is not standard. It is set by the master policy form and the by-laws, and in a New York condominium those two documents disagree more often than anyone would like.
Request a Coverage ReviewThe three master policy forms, and why the difference is everything
Bare walls.
The association insures the structure and common elements only studs out. Everything inside the unit, including original fixtures, cabinetry, flooring, and appliances, is the unit owner’s responsibility.
Single entity.
The association insures the structure and the original as-built unit interior. Owner improvements and betterments are the owner’s.
All-in, sometimes called all-inclusive.
The association insures the structure and the unit interior including improvements.
The same loss produces three different outcomes under these three forms. A board that does not know which one it has cannot tell unit owners what to buy, and unit owners who guess buy either too little or the same coverage twice.
What the unit owner’s HO-6 is expected to pick up
An HO-6 is written to sit in the gap the master policy leaves. It typically covers the owner’s personal property, personal liability, loss assessment, additional living expense if the unit becomes uninhabitable, and building property to the extent the master policy does not.
That last item is the one that has to be sized against the master policy form rather than guessed. Loss assessment is the second. When an association’s deductible is charged back to unit owners, or a large uninsured loss is assessed, the loss assessment provision is what responds and it is frequently left at the form’s default because nobody looked.
The deductible is where most claims actually land
Master policy deductibles on New York condominiums have risen substantially, and water damage deductibles in particular. A loss originating in one unit and damaging three others can fall entirely below the master deductible, at which point the question is not what is covered but who pays.
The by-laws should say whether the association can charge the deductible back to the responsible unit owner. Many are silent, and silence produces litigation. Boards should resolve this in the by-laws, and unit owners should carry loss assessment sized to the actual master deductible rather than a default figure.
What boards should confirm at every renewal
Which master policy form is in force, in writing, and whether it changed. Whether the insured value reflects current replacement cost rather than an appraisal from several renewals ago. What the water damage deductible is and whether it moved. Whether directors and officers coverage responds to non-monetary relief. Whether the fidelity bond still satisfies the by-laws and any lender requirement. And whether anything about the building a new amenity, a commercial tenant on the ground floor, a short-term rental policy change altered the risk without altering the program.
If you manage condominiums rather than own or govern one
Managing agent exposure is separate from the association’s program and does not transfer to it. That analysis lives here: HOA, condo and co-op insurance for managing agents
Common Questions
Q: How do I find out which master policy form my condo has?
Ask the board or the managing agent for the master policy declarations page, not a certificate. The certificate will not tell you. The declarations page and the by-laws together will.
Q: If the master policy is all-in, do I still need an HO-6?
Yes. All-in still leaves your personal property, your personal liability, additional living expense, and loss assessment uninsured. It narrows the building portion; it does not remove the need for a policy.
Q: Water came from the unit above mine. Whose insurance pays?
It depends on the master policy form, the master deductible, the by-laws’ allocation of responsibility, and whether the origin was sudden or a maintenance failure. This is precisely the scenario where the three documents have to be read together, and it is the most common claim in New York condominiums.
Q: What is loss assessment coverage and how much should I carry?
It responds when the association assesses unit owners for a loss its own policy does not fully cover, including a charged-back deductible. Size it against your association’s actual master deductible and its reserve position, not against the default on the form.
Request a Coverage Review
Bring the governing documents and the current declarations page. Most of what goes wrong in this segment is a mismatch between the two, and it is visible in an hour of reading.