Master policy vs. HO-6 — what each covers in California
Your condo association carries a "master policy" covering the building structure, common areas (lobbies, hallways, elevators, exterior walls, roof), and association liability. Your HO-6 unit owner policy covers everything the master policy doesn't — and exactly what that means depends entirely on which type of master policy your association carries.
California Insurance Code Section 10081.4 governs condo master policy disclosure. Most California associations carry 'bare walls' master policies, meaning unit owners need HO-6 coverage for everything from drywall inward including original fixtures. California FAIR Plan provides fire-only coverage where private carriers non-renew; earthquake coverage requires separate California Earthquake Authority (CEA) policy.
Three master policy types exist:
- "Bare walls" — covers only the building structure to the unfinished interior surface. You need HO-6 for drywall, flooring, fixtures, cabinets, appliances, and everything inside the unit.
- "Single entity" — covers original fixtures and finishes as installed by the developer. You need HO-6 for upgrades, personal property, and any improvements you've made.
- "All-in" or "all-inclusive" — covers original and current fixtures and finishes. You need HO-6 mainly for personal property, liability, and loss assessment.
What HO-6 actually covers in California
Six standard coverage parts on every California HO-6 policy:
- Coverage A (Dwelling/Building Property) — interior structure from drywall inward (or fixtures, depending on master policy type)
- Coverage B (Other Structures) — usually not applicable on condos, occasionally for assigned storage or parking
- Coverage C (Personal Property) — furniture, electronics, clothing, etc. Typically $25K-$100K
- Coverage D (Loss of Use) — temporary housing if unit is uninhabitable. Typically 30-50% of Coverage A
- Coverage E (Personal Liability) — covers injuries to others in your unit or anywhere you're legally liable. Default $100K-$300K
- Coverage F (Medical Payments to Others) — small no-fault medical for guests injured in your unit. Typically $1K-$5K
- Loss Assessment — covers your share of an association deductible or uncovered loss. Default usually $1K-$5K; raise to $50K+ in California
California-specific coverage issues
wildfires & earthquakes drives the bulk of California condo claim activity. In California, earthquake and wildfire are commonly excluded from standard HO-6 policies and require separate endorsement or standalone coverage. Earthquake is rarely an HO-6 endorsement — most CA unit owners need a separate earthquake policy.
Loss assessment is the most underbought coverage in California condo HO-6. If your association is hit with a large uninsured loss — a structural failure, a major liability judgment, an earthquake outside coverage, or a hurricane that exhausts the master policy deductible — owners are assessed for their pro-rata share. Default $1,000-$5,000 loss assessment coverage is often woefully inadequate. Raising to $25,000-$50,000 typically adds $20-50/yr and is worth it.
Sewer backup, water backup from drains, and seepage are often excluded under standard California HO-6 policies. Most carriers offer this as an endorsement for $40-100/yr; in older buildings or coastal areas it's almost always worth carrying.
Who writes condo insurance in California
Active California HO-6 carriers: California FAIR Plan, Mercury, Farmers, Allstate, Travelers. California FAIR Plan and Mercury are typically the first two quotes to gather.
California condo HO-6 underwriting is generally less fragmented than coastal markets — most national carriers will quote in metropolitan ZIPs.
Bundling with auto insurance typically saves 10-20% on California HO-6 premium. Most major carriers offer the discount; some — like Mercury in California or NYCM in New York — only quote HO-6 if you also carry auto with them.
How to right-size your California HO-6
Step 1: Get a copy of your association's master insurance declaration page. Determine the master policy type (bare walls, single entity, or all-in) and the association deductible amount. This single document determines your HO-6 sizing.
Step 2: Calculate Coverage A (dwelling/building property). For bare walls master policies, this should reflect the cost to replace everything inside the unit — typically $50-$150 per square foot of unit area in California, plus full kitchen and bathroom replacement. For all-in master policies, Coverage A can often be minimal ($10K-$25K).
Step 3: Set personal property (Coverage C) at actual replacement cost of your belongings. For most condo owners, $50,000-$75,000 covers furniture, electronics, clothing, and small valuables. High-value jewelry, art, and collectibles need separate scheduled coverage.
Step 4: Raise liability (Coverage E) from default $100K to at least $300K, especially in California's litigation environment. The premium difference is usually $20-50/yr. If you have significant assets, consider umbrella coverage on top.
Step 5: Raise loss assessment from default to at least $25,000 (preferably $50,000). This is the single most undersized coverage on most California HO-6 policies.